7 Powerful Truths About the Average Retirement Age in the US (And Why It May Never Stop Rising)

The average retirement age in the US is no longer just a number. It’s a symbol of how American life, work, and policy have evolved. According to the April 2024 research brief from Alicia Munnell at Boston College’s Center for Retirement Research, men now retire at an average age of 64, while women retire at 62—each about three years later than their counterparts in the early 1990s. What’s driving this steady upward climb, and when will it stop?

These questions are more than academic. They impact every American worker—whether you’re a twenty-something just starting your 401(k), or a fifty-something wondering if you can finally take that dream road trip without worrying about monthly bills. The shift in the average retirement age in the US reflects deeper currents in society, health, public policy, and the economy. And the implications are both empowering and alarming.

Let’s dive deep into seven powerful truths that explain why the retirement age keeps rising—and what it means for your future freedom, income, and peace of mind.

1. Americans Are Living Longer—But That Doesn’t Tell the Whole Story

It’s no secret that lifespans have increased. A century ago, retiring at 60 meant enjoying only a few years of retirement. Today, someone retiring at 62 might live two more decades or longer. On paper, it makes sense: if we live longer, we should work longer. But the reality is more complex.

The Health Span vs. Life Span Dilemma

Living longer doesn’t always mean living healthier. While many Americans are enjoying more active years thanks to medical advances, others face chronic illnesses, mobility issues, or mental health challenges that limit their working years. This divide is particularly visible across income and racial lines.

Life Expectancy Trends Aren’t All Positive

Recent years have seen life expectancy plateau—and in some cases, decline—due to public health crises such as opioid addiction, obesity, and the fallout from COVID-19. Yet, many policies continue to assume increasing longevity, reinforcing longer work expectations.

According to ConsumerFinance.gov, the reality of extended life isn’t just about personal health—it’s a public policy challenge that affects pensions, insurance, and the entire structure of retirement benefits.

2. Retirement Benefits Have Shifted the Burden to the Worker

In the past, millions of Americans relied on defined benefit pension plans—employer-funded plans that promised lifetime income. Today, the retirement landscape is dominated by 401(k) and other defined contribution plans, shifting the responsibility of saving and investing to the individual.

The Decline of Pensions

• In 1980, about 60% of private-sector workers had a pension.
• Today, fewer than 15% do, and most are government employees or union members.

The erosion of pensions means workers must save more on their own—and for longer. This is a major reason why the average retirement age in the US has increased. Without a guaranteed income stream, many Americans delay retirement simply because they’re not financially prepared.

401(k)s Reward Delayed Retirement

With 401(k)s, the longer you work, the more you contribute, and the more your employer may match. Compound interest also works in your favor. But these benefits only materialize for those who stay in the workforce—and can afford to contribute consistently.

This structural change in retirement financing has made later retirement not just common—but often necessary.

3. Social Security Reforms Have Quietly Raised the Retirement Bar

Social Security plays a crucial role in retirement planning. But most Americans don’t realize that the full retirement age (FRA) has already increased. For people born in 1960 or later, FRA is now 67—two years later than it was for their grandparents.

The Trade-Offs of Early Claiming

You can still claim Social Security at age 62, but you’ll receive up to 30% less per month for life. This reduction nudges many to work longer to secure higher benefits.

According to the Social Security Administration, over 30% of workers still claim early at 62—often out of financial need or fear of future benefit cuts. But these early retirees lock in lower incomes for the rest of their lives.

Why These Policy Changes Matter

While phased in gradually since the 1980s, the impact is cumulative. Each year of later eligibility pushes the national average upward, contributing steadily to the trend of delayed retirement.

4. Medicare Eligibility at 65 Creates a Financial Anchor

Healthcare remains a massive cost for retirees. Most Americans become eligible for Medicare at age 65, and this milestone has become a major factor in retirement timing.

The Cost of Retiring Before Medicare

Retiring before 65 means facing expensive private insurance premiums, especially for those without access to employer-sponsored COBRA coverage. As a result, many workers aim to stay employed until Medicare kicks in, locking in age 65 as a de facto retirement target.

Healthcare as a Driver of Workforce Participation

• Medical costs are the number one concern among pre-retirees.
• Workers with chronic conditions are especially cautious about losing health coverage.
• Employer health benefits often tie workers to jobs longer than they intend.

The result? A rising average retirement age in the US, even for those who might otherwise be ready to leave the workforce.

For more insight into how to plan around Medicare and healthcare costs, see our guide on How Social Security Changes Could Impact Your Taxes and Retirement Income.

5. Many Americans Work Longer Because They Have To—Not Because They Want To

The upward trend in the average retirement age in the US often masks a hard truth: many older Americans are not working longer by choice. They’re doing it out of necessity. Surveys by the AARP and Transamerica Institute consistently show that while some people delay retirement to stay active or fulfilled, a significant portion simply can’t afford to stop working.

The Retirement Readiness Gap

According to a 2024 AARP report, 1 in 5 Americans over age 50 has no retirement savings. Among low-income workers, women, and people of color, the numbers are even more troubling. Many of these individuals lack access to employer-sponsored plans and face higher costs throughout life due to healthcare, caregiving, or systemic barriers.

Why People Delay Retirement

• Debt: Mortgages, credit cards, and student loans carried into older age.
• Insufficient savings: 401(k) balances are too small to generate income.
• Dependents: Support for adult children or aging parents.
• Healthcare costs: Retiring before Medicare is financially impossible for many.

Working Without a Safety Net

For lower-income Americans, there’s often no choice. Without personal savings or family support, work becomes the only source of income. These workers tend to have jobs that are physically demanding or lack flexibility—yet they work longer than ever because they must.

This reality contributes to the rising average retirement age in the US, and raises critical questions about inequality, dignity, and what it means to age in America.

6. The Psychology of Retirement Has Changed

Retirement once meant a gold watch, a fixed pension, and a relaxing life. But for today’s workers, the concept has become fluid, uncertain, and emotionally complex. The psychological landscape of retirement has shifted along with its financial foundation.

Expectations vs. Reality

Surveys show that many Americans still dream of retiring early. Yet the majority now say they expect to retire at 67 or later. This is not simply due to finances—it reflects a deeper psychological adjustment to longer work lives and economic uncertainty.

The Desire to Keep Working

Some older adults delay retirement by choice. They enjoy their jobs, thrive on routine and social interaction, and feel a sense of purpose. For many professionals, especially in white-collar fields, retirement doesn’t feel like a goal—it feels like a disruption.

Others work longer because they fear the unknown. Retiring without enough money, structure, or health coverage feels risky. Continuing to work provides identity, income, and insurance.

Emotional Contradictions

• Gratitude: For the ability to work and remain independent.
• Anxiety: About rising living costs and outliving savings.
• Fatigue: From long careers in exhausting roles.
• Resentment: For not being able to afford a restful retirement.

The complex emotional mix surrounding retirement decisions adds another layer to the average retirement age in the US. It’s not just about numbers—it’s about identity, security, and fear.

7. Forces That Pushed Retirement Age Higher May Be Losing Steam

Interestingly, some economists now argue that the climb in the average retirement age in the US may be plateauing. Alicia Munnell’s 2024 report suggests that the major forces behind delayed retirement—such as policy reform, changing benefits, and rising life expectancy—may have run their course.

Structural Changes Have Peaked

• The increase in Social Security’s full retirement age is complete.
• The shift from pensions to 401(k)s has stabilized.
• Gains in life expectancy have flattened—or reversed.
• The expansion of jobs suitable for older workers has slowed.

These observations suggest that we may not see the average retirement age in the US continue to rise indefinitely. In fact, it might start to fall under certain conditions.

Early Retirement Surge in 2025

Munnell’s most surprising finding is that early retirement claims have spiked in 2025. Fears over Social Security’s solvency, political instability, and administrative issues have led to a 15% increase in benefit applications compared to 2024. Website outages, staff shortages, and confusing messaging have pushed many older workers to claim benefits “while they still can.”

This wave of early claiming may reverse the decades-long trend of delayed retirement—at least temporarily. If this continues, we could see a dip in the average retirement age, defying expert predictions.

The Milestones That Anchor Retirement Decisions: 62 and 65

Despite economic shifts, two ages remain central to how Americans approach retirement: 62 and 65.

Age 62: The Early Claim Trigger

This is the earliest most Americans can claim Social Security benefits. Even though it comes with a permanent reduction, it’s the most popular age for retirement. For many, it represents a psychological milestone—the first door to “freedom.”

Age 65: The Medicare Marker

Medicare eligibility begins at 65, making it another pivotal point. For workers without employer coverage or private insurance, it often determines when retirement becomes affordable.

Combined, these two ages act as gravitational anchors in the retirement decision-making process. They explain why the average retirement age in the US hovers in the 62–65 range and is unlikely to move dramatically without major policy changes.

For practical strategies to better prepare financially for retirement, explore our guide: How to Analyze Your Monthly Expenses in 2025.

Economic Inequality: A Key Driver of the Retirement Divide

One of the most important truths behind the average retirement age in the US is that it varies dramatically based on wealth, education, and profession.

The Privileged Can Choose

Higher-income Americans often work longer because they want to. They enjoy their jobs, have flexibility, and can afford top-tier healthcare. Delaying retirement boosts their Social Security benefits and preserves investment portfolios. For them, it’s a strategic choice.

The Struggling Are Forced

Low-income workers, especially in physically demanding jobs, rarely get to choose. They often retire early due to health issues or are pushed out due to layoffs or ageism. Others work longer out of desperation, despite fatigue and limited options.

Data shows that workers in professional roles retire 3 to 5 years later, on average, than those in manual labor positions. This inequality is reflected not just in retirement age—but in the quality of retirement itself.

Why It Matters

The conversation about when Americans retire must include who can afford to wait and who cannot. Otherwise, we risk painting a misleading picture of a nation where everyone’s retirement clock is ticking the same way.

Looking Ahead: Will Policy Shape the Next Retirement Wave?

Public policy remains a powerful force in shaping retirement behaviors. Proposals to raise the full retirement age to 70 continue to surface in Congress, especially as Social Security’s long-term funding becomes more precarious.

Potential Policy Shifts

• Increasing the retirement age further for future generations
• Raising the Medicare eligibility age
• Expanding retirement coverage through auto-enrollment and national savings programs

These decisions will determine whether the average retirement age in the US continues to rise, plateaus, or even begins to fall. And the outcomes will affect millions of Americans’ financial well-being, health access, and life satisfaction.

For the latest legislative updates and policy proposals, visit SSA.gov and FDIC.gov.

Conclusion: Navigating the Future of Retirement in America

The steady rise in the average retirement age in the US is not just a number on a chart. It reflects decades of transformation in how Americans work, save, and age. For some, working longer is a welcome opportunity to stay active and financially secure. For others, it’s a painful necessity born from systemic inequality and economic uncertainty.

As we’ve explored, the forces behind this shift are vast—spanning public policy, healthcare access, psychological evolution, and the erosion of guaranteed retirement benefits. While certain trends that fueled later retirement are losing momentum, new variables—such as political disruption and financial anxiety—are shaping retirement decisions in unexpected ways.

Ultimately, the future of retirement in America will be defined by a combination of personal strategy and collective decisions. Policymakers must grapple with how to modernize Social Security, protect Medicare, and close the retirement savings gap. Individuals, meanwhile, must navigate an increasingly complex financial landscape with resilience, clarity, and support.

Whether you’re approaching retirement or decades away, the question isn’t just when you’ll stop working—it’s how well you’ll live when you do. The more you understand the average retirement age in the US and the forces behind it, the better equipped you’ll be to create a future that honors your time, health, and dignity.

Explore our detailed guide to long-term financial planning here: Top Passive Income Ideas for 2025.

Frequently Asked Questions About the Average Retirement Age in the US

What is the current average retirement age in the US?

As of 2024, the average retirement age in the US is 64 for men and 62 for women, based on data from Alicia Munnell and the Center for Retirement Research at Boston College. These figures have risen by roughly three years over the last three decades.

Why are Americans retiring later than before?

Several reasons contribute to this trend:

• Increased life expectancy and healthier aging
• Shift from pensions to 401(k) plans
• Delayed eligibility for full Social Security benefits
• Rising healthcare costs and Medicare access at 65
• Economic pressures and lack of retirement savings

Is it possible the retirement age will stop rising?

Yes. Experts like Alicia Munnell believe that the major forces pushing retirement later—such as Social Security reforms and the pension-to-401(k) shift—have largely played out. New concerns, like the spike in early claims due to Social Security fears, may even bring the average retirement age down in the near future.

What’s the earliest age I can retire and still get Social Security?

Most Americans can start receiving Social Security benefits at age 62. However, claiming early results in permanently reduced monthly payments. The full retirement age (FRA) is now 67 for those born in 1960 or later.

Is working longer better for your finances?

Generally, yes. Delaying retirement allows for larger Social Security payments, more contributions to retirement accounts, and fewer years drawing down savings. However, not everyone has the health or job flexibility to extend their careers safely or willingly.

How do Medicare and healthcare costs affect retirement timing?

Medicare eligibility begins at age 65. Retiring before that age often means facing high private insurance costs. For many, this becomes a financial reason to continue working until Medicare coverage is available.

What should I do if I can’t afford to retire?

If you’re behind on savings, consider the following:

• Delay Social Security to maximize your benefits
• Review expenses and eliminate non-essential costs
• Explore part-time work or consulting after retiring from your full-time job
• Speak with a financial advisor to create a tailored plan

Also explore resources like ConsumerFinance.gov for free financial tools and education.

Start Planning Today, Not Tomorrow

If there’s one clear message from understanding the average retirement age in the US, it’s this: your future depends on what you do now. Whether you’re 28 or 58, proactive planning is the most powerful way to reclaim control over your retirement timeline.

Start by asking yourself:

• Do I know how much I’ll need to retire comfortably?
• Am I taking full advantage of my 401(k) or IRA options?
• What’s my backup plan if I have to retire earlier than expected?

These aren’t just financial questions—they’re life questions. And the answers will shape your quality of life for decades to come.

At Financial Flow Now, we’re committed to helping you navigate these questions with clarity and confidence. Check out our other articles on retirement, savings, and income strategies for the modern worker.

Want to see how Social Security affects your income planning? Don’t miss our expert resource: How Student Loan Defaults Are Slashing Social Security Benefits.

For tools and projections, visit Investopedia and run simulations to test your retirement readiness.

The journey to retirement doesn’t have to be a mystery. It starts with education, then builds with smart action. And no matter where you are today, it’s never too late—or too early—to start shaping a retirement you can look forward to.

Kaiya Acosta

Kaiya Acosta recently finished studying finance. He has always wanted to create a blog about money. Now, he is making his dream real. Kaiya is from Texas, USA, and loves helping people learn how to manage their money better.