The average retirement age in the US

• Retirement age impacts health and well-being
• Workers have retirement expectations that are different from reality
• The gap between expected and actual retirement age is significant

When you think about your retirement, do you imagine still feeling agile and in relatively good health?

The truth is that how we feel when we stop working has a lot to do with the age at which we decide to retire.

There is a big difference between the retirement age expected by workers and the age at which they actually retire.

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That’s according to the 2023 Retirement Confidence Survey from the nonprofit Employee Benefits Research Institute (EBRI).

The study is based on responses from 2,537 US workers and retirees surveyed online from January 5 to February 2, 2023.

According to a fact sheet released with the survey, the median age at which American workers retire is 62.

Interestingly, the median age that American workers expect to retire is 65 years old.

Significant Difference Between Retirement Expectations and Reality

«As in previous years, there is a large gap between the age at which active workers expect to retire and the age at which retirees say they actually retired.

«Workers continue to report a median expected retirement age of 65, while retirees report retiring at a median age of 62,» the fact sheet says.

Here are some additional findings from the survey: 33% of workers expected to retire at age 70 or later, or not at all, while only 6% did.

Only 11% of workers planned to retire before age 60, while 33% did.

Financial Considerations for Retirement in your 60s

20% of workers planned to retire between ages 60 and 64, although 35% did.

The financial expert Clark Howard points out that although retiring in your 60s may seem very attractive, there are financial considerations you should take into account.

Especially since we are living longer than previous generations.

He notes that it is difficult for many of us to achieve the level of financial security necessary to sustain retirement for what could be 40 years.

Who Can Achieve Financial Independence?

Clark says this financial freedom applies to perhaps the 25% of Americans who have access to a pension.

Or they own a successful business or are “top savers” in the Financial Independence, Retire Early (FIRE) movement.

«The other 75%, you haven’t been in a position where you’ve been able to save a lot of money,» he says.

«And you don’t have a pension, you’re not even eligible for Social Security. And how are you going to pay for your health care until Medicare starts at age 65?

How to Ensure a Comfortable Retirement

Clark says it will benefit your quality of life in retirement if you can continue working until you reach full retirement age, and even later.

Every year you can delay retirement in your 60s will help your wallet tremendously in the long run.

He says the goal is simple: “get a few extra years so you can build up more savings.”

«You can get to the point where you qualify for Medicare,» says Clark Howard.

A higher Social Security check

And if you’re willing to do what I’m doing, which is wait until you’re 70 to receive Social Security…

«It means that if you live to be 100, 90 or 85, your Social Security check will be much, much, much larger than it would have been otherwise.»

Another option you can consider is longevity insurance, which pays you each month you live past a certain age.

«This is how it works: you buy one of these policies… generally people buy them in their 60s and start paying at 80 or 85,” Clark says.