Retirement in the Modern Age: Why 65 Isn’t What It Used to Be
For many people, retirement no longer looks like a single, fixed moment – a set date when work stops and life begins. Today, it’s becoming a gradual, personal journey, shaped by how you want to live, work, and stay connected as you get older.
As Independent Financial Advisers, one of the biggest changes we’re seeing is that the traditional model of retiring at 65 and living off a final salary pension is becoming increasingly rare – and for many, it may no longer be achievable.
Longer life expectancy, shifts in workplace culture, changes to pensions, and personal financial responsibilities mean that retirement planning today is about flexibility, choice, and preparation.
Why Retiring at 65 May No Longer Be Realistic
Several factors are changing what retirement looks like:
- State Pension Ages Are Rising: In the Isle of Man, the State Pension age is currently 66, and this year it will begin to increase and reach 67 in 2028. This means later access to your pension than you previously expected
- Fewer Final Salary Pensions: Defined Benefit (DB) pensions, which once guaranteed a fixed income, are in decline. More people now rely on personal or workplace pensions, which require careful planning
- Longer Retirements: People are living longer, often spending 20–30 years in retirement. According to the ONS, the average 65-year-old man can expect to live to 85, while a woman of the same age is likely to live to 88. Ensuring your savings last that long requires more proactive planning and ongoing management than ever before
The reality is that retiring comfortably at 65 may no longer be a given thing. It now requires planning, saving, and flexibility.
Making retirement work for you
The good news is that modern retirement doesn’t have to mean stopping work completely at a certain age. Many people now choose a gradual transition, allowing them to continue working part-time, take on consultancy roles, or combine pension income with part-time earnings.
Benefits of a phased approach include:
- Easing the mental and financial transition into retirement
- Allowing more of your pension savings to remain invested for longer
- Giving you time to test what retirement looks like and how much income you actually need
Modern pension rules, including the Pension Freedom Scheme (PFS), make it easier to access your pension flexibly while still working, helping you balance income needs with lifestyle goals.
Retirement is personal
Retirement today is less about hitting a certain age and more about choosing how to live your next chapter. Many people use retirement to:
- Start a new career or business
- Travel or pursue hobbies
- Volunteer or take on part-time work
- Spend more time with family
This shift reflects a broader change in how we view work, purpose, and wellbeing – and the choice is yours to make. You can learn more about this by reading this article by Natalie Bush, Senior IFA
Take control of your retirement
If retiring at 65 feels uncertain or out of reach, the key is planning early and making informed decisions. Understanding your pensions, exploring flexible retirement options, and considering phased transitions can help you achieve a retirement that works for you.
Our team of qualified Independent Financial Advisers can help you review your pension options, plan for a phased retirement, and ensure your savings last throughout your later years.
If you feel it would be helpful to talk this through, please contact us to arrange a meeting to discuss your plans for the future.
