Editorial Note Reviewed: Forbes Advisor partner links provide a commission to us. Commissions do not affect our editors opinions or evaluations.
Over the past three decades, the average retirement age for men has increased by three years, while the average retirement age for women has increased by slightly more during the same time.
Increased life expectancy alone cannot fully account for the rising average retirement age in the U.S. S. Experts identify two equally significant factors as being less money saved and receiving less Social Security benefits.
However, broad averages mask a significant variation in retirement decisions among Americans according to their race, gender, income, and level of education.
Understanding the average retirement age can be helpful when planning your own retirement journey. In this article, we’ll explore the average retirement age in the U.S., how it’s changing, and factors to consider when deciding when to retire.
The Average Retirement Age in the U.S.
The average retirement age in the U.S. is 64 years old. However, this number can vary depending on several factors, including:
- State of residence: The average retirement age varies from 61 to 67 years old across different states.
- Gender: The average retirement age for men is 65, while it’s 63 for women.
- Financial situation: Individuals with a comfortable retirement savings plan may choose to retire earlier, while those with limited savings may need to work longer.
- Health: Individuals in good health may be able to work longer, while those with health concerns may need to retire earlier.
- Desired lifestyle: Individuals who want to travel or pursue hobbies in retirement may need to retire earlier than those who plan to live a more modest lifestyle.
How the Average Retirement Age is Changing
The average retirement age has been steadily increasing over the past few decades. This is due to several factors, including:
- Changes in Social Security: The full retirement age for Social Security benefits has been gradually increasing, from 65 in 1986 to 67 for those born in 1960 or later.
- Fewer employer pensions: The decline of employer pensions has forced many individuals to rely more heavily on personal savings for retirement.
- Increased life expectancy: People are living longer, which means they need to save more for retirement to cover their expenses for a longer period.
Factors to Consider When Deciding When to Retire
Deciding when to retire is a personal decision that should be based on your individual circumstances. Here are some key factors to consider:
- Financial situation: Do you have enough savings to cover your expenses in retirement?
- Health: Are you in good health and able to work?
- Desired lifestyle: What kind of lifestyle do you want to live in retirement?
- Social Security benefits: When are you eligible to receive full Social Security benefits?
- Medicare eligibility: When are you eligible to receive Medicare benefits?
Frequently Asked Questions
Q: What is the average retirement age for men?
A: The average retirement age for men in the U.S. is 65 years old.
Q: What is the average retirement age for women?
A: The average retirement age for women in the U.S. is 63 years old.
Q: What is the full retirement age for Social Security benefits?
A: The full retirement age for Social Security benefits is 67 for those born in 1960 or later.
Q: What is the eligibility age for Medicare benefits?
A: The eligibility age for Medicare benefits is 65 years old.
Q: How can I prepare for retirement?
A: Start saving early and often for retirement. Consider talking to a financial advisor to develop a retirement plan.
The average retirement age in the U.S. is 64 years old, but this number can vary depending on several factors. When deciding when to retire, it’s important to consider your financial situation, health, desired lifestyle, and other factors. By carefully planning for retirement, you can ensure a comfortable and fulfilling retirement lifestyle.
Additional Resources
- Empower: What is the average retirement age?
- SmartAsset: When Do People Retire on Average?
- Yahoo Finance: The Average US Retirement Age: Where Do You Stack Up?
Disclaimer: The information provided in this article is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to consult with a qualified financial advisor to discuss your specific financial situation and retirement planning needs.
Average Retirement Age By State
Your retirement age may vary depending on where you live because of things like cost of living, healthcare requirements, and work opportunities.
The average retirement age in southern states such as Alabama, Georgia, and South Carolina is generally lower than the national average. In contrast, the average retirement age is higher in Northeastern states like Connecticut, New Hampshire, and Massachusetts.
A MoneyTalksNews survey from 2019 looked here are the U. S. The American Community Survey by the Census Bureau will be used to calculate the average retirement age by state. Here’s what they found:
Source: MoneyTalksNews / U.S. Census Bureau American Community Survey
Start Planning for Retirement as Early as Possible
The more time your money has to grow, the earlier you start saving for retirement. Compound interest allows you to start saving early in your career, even if it’s just a small amount each paycheck, and can have a significant impact on your ability to retire. If nothing else, you’ll develop a savings mindset.
As your career develops and your financial situation improves, prioritize retirement savings. Leading certified financial planner (CFP) Michael Kitces advises putting aside half of any raises you may receive in the future.