The Average Retirement Age In The US

Retirement is the end game for just about every investor. Indeed, the reason people invest their money is to grow it and use it at a later date, which for most people, coincides with their intent to leave the workforce.

But just saving and investing isn’t enough when it comes to retirement; investors must also figure out when they will retire.

The answer to this question varies from one person to another based on innumerable variables, but the point at which one leaves the workforce has immense implications for the retirement years.

If one wants to compare themselves to the average retirement age in the U.S., see below:

  • The average retirement age in the U.S. is 61 according to Gallup.
  • The average expected retirement age in the U.S. is 66 according to Gallup.
  • More than 50% of U.S. retirees retired on or before age 62 according to DQYDJ.

If one retires too early, they risk running out of money. Conversely, retiring too late may cause the investor to miss out on planned experiences. Keep reading this article for more on the average expected and actual retirement ages in the United States.

Retirement: Expectations Versus Reality

Americans have historically made their decision to retire based upon their eligibility to receive Social Security payments or their ability to receive defined benefit plan payments from their employer. However, defined benefit plans, typically called pensions, are much rarer than they used to be and thus, investors must make up that income gap with prudent investing. This has caused expectations for retirement age to gradually increase in the past couple of decades, as seen below.

When Do You Expect To Retire

Source: Gallup

Polling giant Gallup regularly asks workforce participants in the US when they believe they’ll be able to retire. As we can see, the average response was 60 about 25 years ago, while the average is 66 today. There are many reasons why people would put off retirement, including taking care of aging parents, uncertainty around investment returns, and even the state one lives in. Indeed, states with lower cost of living tend to see earlier retirement ages, which makes a lot of sense considering most retirees are on a budget.

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