Key Takeaways:
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The “average retirement age” depends on how retirement is defined, and different studies can produce different numbers for that reason.
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In the U.S., many surveys place the typical retirement age in the early 60s, but many workers expect to retire later than that.
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Your ideal retirement age is the one that aligns with your health needs, household budget, benefits timing, and local tax regulations.
Your retirement age is an important decision. You may have a number in mind, but life often surprises people, forcing them to retire earlier or later than expected. Some individuals retire when they reach a certain age, others retire when work conditions become too burdensome, health issues arise, or family dynamics shift.
This is why the average retirement age figures you see in national surveys are useful as a reference point, but shouldn’t become a rule you force yourself to follow. In this guide, you’ll learn about the average retirement age, how that data is tracked, factors that influence retirement timing, how to choose the age that makes the most sense for you, and more.
What Does “Average Retirement Age” Mean?
Data sets can change depending on how retirement is defined. This doesn’t mean any specific average is “wrong,” it means you should understand what factors were considered to reach it and determine if those factors align with your definition of retirement.
An “average” is a number that aims to summarize a wide range of experiences. It can shift upward due to people who work into their late 70s, or shift downward due to those who stop earlier because of health issues or job loss. Surveys also rely on self-reporting, and just like the researchers conducting the surveys, individuals can interpret “retired” differently.
How Is Retirement Data Tracked?
Some organizations perform surveys and ask retirees directly, “At what age did you retire?” Gallup , a well-known analytics and advisory company, is known for this approach, and it captures people’s lived experience. Other researchers use labor force data and track when people exit the workforce.
That approach can be useful, but it may label someone “retired” even if they still occasionally do paid work. Some analyses look at the age at which people begin claiming Social Security benefits, but claiming isn’t the same as retiring. A person can claim at 62 and keep working, or retire at 60 and wait to claim.
Since these methods differ, two average retirement ages can both be true within their own definitions. The key is to understand which factors are being used to determine those averages. Is the data reporting when people stop working, when they claim benefits, or when they consider themselves retired? Once you know that, you can compare sources with more clarity.
What Is the Average Retirement Age Today?
The typical retirement age in the U.S. often falls in the early 60s. Gallup reports that, on average, retirees say they retired around age 61 , while nonretirees often say they expect to retire later than that. Other sources often place the average closer to 62, depending on the data set and definition used. The general consensus is that people tend to retire earlier than they plan.
The age at which a person retires can also be influenced by economic conditions, job markets, health, and other life shifts. Older workers have remained in the labor force longer today than in past decades, but not everyone can keep working when they want or need to.
Some retire by choice, and others retire because work becomes unavailable or physically impossible. While planning, it’s smart to consider both the age you want to retire and the age you may have to retire at if life forces a change.
Social Security Timing and Medicare Eligibility
Two major benefit programs influence retirement timing in the United States: Social Security and Medicare. Medicare eligibility typically begins at age 65, which serves as a natural milestone for retirement planning. Social Security benefits can start as early as 62, but the monthly benefit is reduced if you claim before full retirement age (FRA) .
FRA depends on a retiree’s birth year and is 67 for those born in 1960 or later. You can also delay Social Security up to age 70 to increase your monthly benefit. Some people retire at 62 because they want immediate income, even though the check is smaller.
Others retire earlier and use their retirement savings as a bridge while they delay Social Security to claim a larger benefit later. Some keep working until age 65 to establish Medicare eligibility, then adjust their work schedule.
How Can Your Industry Affect Retirement?
Certain careers can take a greater toll on the body and mind than others. People in physically demanding roles may find it difficult to keep working into their late 60s, even if they want or need to. Individuals in office-based roles who perform their daily tasks sitting at a desk may be able to work longer, especially if remote work is an option.
Self-employed workers may also retire later because they control their workload and schedule. Union roles, public employment, and jobs with good pensions can also influence timing. A pension can make retiring earlier feel more achievable for some households.
Workplace culture matters as well. Some employers support phased retirement , where you gradually shift from full-time to part-time. Others have rigid schedules and limited flexibility. Job satisfaction can also keep people working longer. Many retirees express missing the social connection and sense of purpose that work provided.
Easing Into Retirement
A phased retirement can act as a bridge between work and full retirement. You might reduce hours, change roles, or consult in your field. This can help preserve savings since you’re not withdrawing as much from your portfolio early on. Additionally, if you can maintain health coverage through part-time work, that can help you save until you reach Medicare age.
If you’re considering a phased retirement, ask your employer whether reduced hours, job sharing, or transitioning to a different role is possible. If you’re self-employed, determine how you could take on fewer projects while still maintaining the necessary income.
How Can State Taxes Affect Your Income?
State taxes can influence how much of your retirement income you get to keep, so you’ll need to factor this in when determining the amount you need to save. Most states tax retirement income, but some don’t. If relocation is part of your retirement plan, you need to consider your potential tax obligations before moving.
Nine states don’t impose a state income tax:
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Alaska
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Florida
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Nevada
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New Hampshire
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South Dakota
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Tennessee
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Texas
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Washington
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Wyoming
Four states do impose an income tax but exempt most common types of retirement income:
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Illinois
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Iowa
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Mississippi
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Pennsylvania
Eligibility details can vary by age and income type in some places, so verify local regulations before making any relocation decisions. Even if you don’t relocate, make sure you understand your state’s tax laws so you can plan accordingly.
Housing and Healthcare Costs
Taxes aren’t the only factor to consider. A state with no income tax can still be expensive if housing, insurance, or property taxes are high. Additionally, a state with retirement income exclusions can still tax wages and other income, which matters if you plan to work part-time.
Washington, for example, doesn’t tax ordinary income, but it does impose a capital gains tax on certain levels of taxable investment gains, which can matter for certain households. Price housing in the neighborhoods you could see yourself living in and consider how living there would affect healthcare access and premium costs.
How To Determine Your Retirement Age
The simplest way is to set a range you’re comfortable with, rather than a specific date, to allow flexibility. Your range should be based on your budget and expected benefits. If you need employer health coverage, you may aim to work until age 65. If you have good savings and want to retire earlier, consider planning a bridge strategy .
Establishing a Retirement Timeline
Create a timeline from your current age to 70. Mark key points like 62, 65, your FRA, and 70. Write down what changes at each age for your household, then list your expected income sources by phase: employment income, Social Security, pension, and savings withdrawals. This reveals how much of your savings you will need during each phase.
Next, list your action items for the next 12 months. These can include increasing retirement contributions, reducing high-interest debt, adjusting your budget, and exploring health insurance options. When you take small steps consistently, your retirement age range becomes less stressful and more achievable.
Consider a Gold IRA for Your Portfolio
Average retirement age data can be a helpful reference, but your ideal number is the one your budget and expected benefits can support. When you understand how Social Security timing, Medicare eligibility, and state taxes can affect your take-home income, you can choose a retirement timeline with more clarity.
If you want to explore additional ways to support yourself financially during retirement, consider a Gold IRA . This self-directed IRA structure allows individuals to hold physical eligible gold coins and bars in an IRS-approved depository while managing their value in a digital platform.
Consider expanding your portfolio today with American Hartford Gold .
FAQs
Is the average retirement age the same as full retirement age?
No. FRA is a point in time set by the Social Security Administration (SSA) that falls between age 66 and 67, depending on the year you were born. “Average retirement age,” while it can be interpreted in different ways, is most commonly used to describe when people typically leave the workforce.
Why do people often retire earlier than they planned?
Health problems and strenuous job conditions are common reasons. Some individuals also find it difficult to get hired for jobs later in life if put in a position where they’re forced to do so, like a layoff, for example.
Can I retire even though I’m not eligible for Medicare yet?
Yes, but you’ll need health coverage for the years in between. Many retirees use employer coverage through a spouse, purchase private coverage, or budget for higher premiums until they reach age 65.
Sources:
What happens if I work and get Social Security retirement benefits? | SSA
More in U.S. Retiring, or Planning to Retire, Later | Gallup
See your Full Retirement Age (FRA) | SSA
What Is Phased Retirement? Meaning and Process | Investopedia
How Your Savings Can Get You a Bigger Social Security Payout | AARP
