What is the Average Retirement Age?

A recent MassMutual survey shows the average retirement age in the United States has steadily risen from 57 in 1991 to 62 in 2024. The numbers differ by a lot across the country. Alaska and West Virginia residents retire early at 61. District of Columbia workers stay on the job until 67.

Reality often differs from expectations when it comes to retirement timing. Non-retirees in 2022 thought they would work until 66. The actual retirees that year left their jobs at 61. This gap shows why people need to understand what shapes their retirement age. Smart planning makes a difference. This piece explores the key factors that determine the average age of retirement in the USA. You’ll learn about Social Security benefit eligibility and ways to prepare for this major life change.

What is the Average Retirement Age in the USA?

Americans have been retiring at younger ages for decades. The average retirement age was 65 in 1970, which dropped to 62 by 2000. All the same, this trend has stayed steady since the early 2000s, with 62 remaining the average retirement age.

Retirement patterns have changed a lot in the last few decades. About 41% of U.S. adults aged 60-64 and 76% of those aged 65-69 were retired between 2002-2007. These numbers fell to 32% and 70% respectively between 2016-2022. This shows that Americans now stay in the workforce longer than their predecessors.

“Early retirement” isn’t as common anymore. The number of people who retire between 50-54 has dropped from 9% to 6%. Those retiring between 55-59 have also decreased from 19% to 11%.

Where you live affects when you retire. Each state’s average retirement age tells a different story:

• Washington, DC: 67 years
• Iowa, Kansas, Maryland, Vermont, and Texas: 65 years
• Arizona, Missouri, and Nevada: 63 years
• Alaska and West Virginia: 61 years

Gender plays a role too. Men typically retire at 65 while women retire at 63. This two-year difference hasn’t changed much over time.

Americans work longer but also live longer, which leads to extended retirement periods. The expected retirement length has grown from 12.8 to 18.6 years for men and from 16.6 to 21.3 years for women since 1970. Retirement duration has increased by nearly 50%, even with people retiring later.

Reality often differs from retirement plans. Non-retirees in 2022 thought they would work until 66, but retirees actually left work at 61 on average. This five-year gap shows how unexpected events often lead to earlier retirement. Almost six in ten retirees left work sooner than they first planned.

Factors That Influence Your Retirement Age

People rarely retire exactly when they plan to. Research shows nearly 60% of Americans retire earlier than they initially expected. Several factors can push you to step away from your career earlier or later than planned.

Your health can make a huge difference in when you retire. About 40% of people who retire before 62 do so because they aren’t healthy enough to continue working. Medical conditions like lung disease, cancer, arthritis, and diabetes substantially increase the chances of early retirement. So taking care of your health during your career becomes just as crucial as saving money.

Money readiness plays a vital role too. People with better financial resources tend to work longer. About 45% of Americans feel ready for retirement financially. The numbers tell different stories across generations though – 55% of Baby Boomers feel prepared while only 32% of Gen Z adults share that confidence.

Family needs often change retirement plans. Research shows over 80% of midlife adults help support at least one generation of family members. About one-third support both their aging parents and grown children at the same time. Parents who still support their adult children usually work longer. Those who watch their grandchildren tend to retire sooner.

Job satisfaction and workplace conditions can affect your retirement timing too. People who don’t enjoy their work or feel burned out often choose to retire early. The same goes for those dealing with stressful work environments.

Social expectations and government policies help shape retirement patterns. Many countries now have higher official retirement ages because their populations are aging. These policy changes create retirement norms that influence behavior beyond just financial reasons.

Knowing these factors helps you create a more realistic retirement timeline and prepare better for this major life change.

When Are You Eligible for Social Security and Medicare?

Your Social Security eligibility depends on your age and work history. If you were born in 1929 or later, you’ll need 40 credits (about 10 years of work) to get retirement benefits. You can receive your full retirement benefits once you reach your “full retirement age” (FRA), which changes based on when you were born:

• Born 1943-1954: FRA is 66
• Born 1955-1959: FRA gradually increases
• Born 1960 or later: FRA is 67

While your FRA is the standard retirement milestone, you have some flexibility. You can start getting your Social Security benefits as early as age 62, but this will permanently reduce your monthly amount. On the flip side, waiting to claim benefits until age 70 after your FRA increases your monthly payment through delayed retirement credits.

You become eligible for Medicare at age 65. Medicare differs from Social Security because you can enroll while still working – it’s not tied to retirement. Your original enrollment period runs for seven months, starting three months before your 65th birthday month and ending three months after it.

You might face permanent late enrollment penalties if you don’t sign up for Medicare when first eligible, unless you qualify for a Special Enrollment Period. These special periods apply in specific cases:

• While you have current employer insurance
• Within 8 months after your job or coverage ends
• During annual General Enrollment (January-March)

You should apply for Medicare within 3 months of turning 65 to avoid gaps in coverage and penalties, even if you plan to retire later. There’s just one exception: you can delay enrollment without penalty if you have qualifying employer coverage.

Note that Medicare Part A (hospital insurance) comes without premiums if you’ve paid Medicare taxes for at least 10 years, but Part B (medical insurance) requires monthly payments.

How to Prepare for Retirement the Right Way

A solid retirement plan needs careful thought and decisive action. Studies show people who work with financial advisors can retire two years earlier (at age 64) compared to those without professional help (age 66). This gap shows why a well-laid-out retirement roadmap matters.

Your retirement lifestyle vision should break down predicted expenses into three groups: needs (daily essentials), wants (optional spending), and wishes (dream goals). This simple breakdown helps you set realistic savings goals that match your financial targets.

Most Americans need about 80% of their pre-retirement income to live comfortably in retirement. Your specific income needs become the vital first step to calculate. Changes in expenses vary – your housing costs might drop once you pay off the mortgage, but healthcare costs tend to rise substantially during retirement.

Financial advisors suggest saving 12-15% of your yearly income (with employer contributions) toward retirement. Here’s how you can boost your savings:

• Get your full employer 401(k) match
• Set up automatic contributions
• Broaden investments to balance growth and risk
• Make extra contributions after age 50

A debt management plan before retirement gives you more financial freedom. You might not clear all debts, but a clear repayment strategy works best.

Professional financial guidance makes a real difference. Research shows 75% of Americans with advisors feel ready for retirement, while only 45% without advisors share this confidence. People working with advisors also know their exact savings targets – 62% compared to just 34% of those without advisors.

A written retirement plan can transform your outlook. Evidence shows 62.5% of retirees who put their plans on paper feel more confident about their financial future.

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Conclusion

The average retirement age works as a good standard to consider, but personal circumstances end up determining this important life change. The national average stands at 62. Americans of all backgrounds take different paths to retirement. Research shows a clear pattern – people expect to retire at 66 but most leave work by 61. This reality check matters for anyone making long-term money plans.

Several factors shape when someone retires. Health issues, money readiness, family needs, and job satisfaction often lead to earlier workforce exits than planned. Social Security and Medicare rules play a key role too, since these programs offer vital financial support in retirement years.

Without doubt, a successful retirement needs careful planning instead of luck. People who cooperate with financial advisors tend to retire earlier. They also feel more confident about their financial future. A complete written retirement plan should cover income needs, healthcare costs, and lifestyle goals. This plan builds the foundation for your next chapter. Starting retirement planning early gives you more control over both timing and quality of life. Retirement opens the door to an exciting new phase of life rather than just closing one.

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