While the average retirement age for workers in the United States is 64, that number varies as a result of many factors, including your Social Security benefit, your retirement savings, any pensions you might have, and even the lifestyle you want to live in retirement.
Men retire at an average age of 64.6 years, while women remain at work until age 62.3. Retirees at the age of 65 qualify for Medicare benefits.
The 2023 Retirement Confidence Survey reports age 62 as the median age at retirement for current retirees. However, one in three current workers report that they want to work until age 70 or beyond, while a little more than one in 10 (11%) report they want to retire before age 60.
About 26% of people between 65 to 74 are continuing to work, and that number shrinks to about 7.3% for people over 75, according to census data.
The average retirement age in the United States is 61, according to a 2022 Gallup survey. In 1991, the average retirement age in the U.S. was 57; in 2002, it was 59. According to the poll, people still working in 2022 expect to retire at 66 on average.
The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.
As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient.
Many Americans are working into their 70s and 80s — or longer — because of longer life spans, changing attitudes about retirement and insufficient savings. Others simply say they enjoy what they do, and never contemplated giving it up.
Working has benefits beyond just money
A lot of people hope to travel and live comfortably in retirement -- keeping a job of some kind could certainly help you fund these endeavors without withdrawing from your retirement accounts too aggressively. Aside from just money, working has less tangible benefits too.
Some older Americans are choosing to stay in their jobs or find new challenges that will keep them engaged. It's not uncommon for baby boomers to continue to work well into their 60s, 70s or even 80s.
First, the earlier you retire the longer your money has to last. If you retire at age 40 and expect to live to age 90, for example, you'll need to save enough money to last a half-century. Waiting until you're 65 to retire, on the other hand, can ease some of the pressure to save.
When we looked at just the unhealthy retirees in the sample—who accounted for 1,022 of the 2,956 participants—we still found that retiring one year later was associated with a 9% lower mortality risk.
Once you are over 50 (or even 40) it is harder to get a job offer. They also offer some insights from recruiters as to why this might be.
The average age for men to retire is 65 while the average age for women to retire is 63.
The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67.
Assuming an inflation rate of 4% and a conservative after-tax rate of return of 5%, you should aim for a savings target of $1.3 million to fund a 30-year retirement that begins at age 67. This would give you an investment portfolio that produces about $50,000 a year in income.
How long will $500k last in retirement? $500k can last you for at least 25 years in retirement if your annual spending remains around $20,000, following the 4% rule. However, it will depend on how old you are when you retire and how much you plan to spend each month as a retiree.
Take a Normal Retirement to Balance Personal and Financial Needs. Retiring in your mid-60s still makes sense for many people. At this point, you are old enough to have hopefully amassed sizable savings, but you are still young enough to enjoy active pursuits such as travel.
Older Americans Are in the Workforce Longer
The rate of employment for Americans aged 75 or older is at its highest level since 2009. From 2015 to 2019, 6.8% of Americans 75 or older were in the workforce, according to new data from the U.S. Census Bureau's American Community Survey.
The results show that many retirees wish they would have started saving sooner—and a larger amount—than they actually did. In fact, many don't think they'll have enough money to finance their full retirement.
1) Not Changing Lifestyle After Retirement
Many retirees also tend to forget that healthcare and long-term care costs usually come into play as a person ages.
Some of the biggest retirement regrets include: A vague financial plan. No retirement goals. Counting on long-term employment.
A plurality of older Americans, 40.2 percent, only receive income from Social Security in retirement. Roughly equal numbers of older Americans receive income from defined benefit pensions as from defined contribution plans.
Based on the 80% principle, you can expect to need about $96,000 in annual income after you retire, which is $8,000 per month.
The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.