What’s the Average Retirement Age?
Determining the average retirement age in the United States can be a nuanced task, with estimates varying between 61 to 64 years old depending on the data source utilized. For instance, a recent Gallup survey suggests an average retirement age of 61, whereas the Center for Retirement Research at Boston College posits figures of 64.7 for men and 62.1 for women. However, what remains clear is that the average retirement age has risen from 57 in the 1990s, reflecting shifting trends in retirement patterns.
Various factors come into play in determining one’s ideal retirement age, including economic circumstances, health considerations, preferred lifestyle, and individual choices. For some individuals, retiring at age 67 aligns with the standard retirement age to maximize Social Security benefits, while others may opt for earlier retirement at age 62, albeit with reduced benefits. Ultimately, the suitable retirement age is a personal decision influenced by a multitude of factors unique to each individual.
Key Takeaways:
- The average retirement age in the U.S. ranges between 61 to 64 years, subject to varying perspectives and individual circumstances.
- Factors shaping retirement age encompass economic conditions, health status, lifestyle preferences, and career choices.
- Different professions exhibit diverse retirement age trends, warranting tailored considerations for financial planning.
- Understanding the implications of retirement age on Social Security benefits is crucial for effective retirement planning.
Factors Affecting Retirement Age
Numerous influential factors contribute to the determination of retirement age:
- Economic Conditions/Savings: Adjustments in Social Security retirement age requirements influence retirement decisions, while diverse financial situations impact the timing of retirement.
- Lifestyle: Retirement choices are influenced by desired lifestyle post-retirement, necessitating adequate financial planning.
- Health: Health status plays a crucial role, with some individuals extending their working years to bolster retirement savings, while others may have health reasons necessitating earlier retirement.
- Location: Cost of living in one’s residential area impacts retirement planning, with considerations for downsizing or relocating affecting retirement age decisions.
- Personal Preferences: Individual aspirations post-retirement guide decisions on ideal retirement age, ranging from family commitments to recreation activities.
Average Retirement Age in the U.S.
Over the years, the average retirement age in the U.S. has showcased fluctuations, with statistics revealing a downward trend to age 62 for men during 1986-1995 before climbing to the present-day 64.7. Conversely, women have seen a gradual increase in average retirement age from 53 in 1962 to 62.1 in 2021.
Average Retirement Age for Men and Women Over Time
| Year | Age—Men | Age—Women |
|---|---|---|
| 1962 | 66 | 53 |
| 1971 | 65 | 56 |
Source: Center for Retirement Research at Boston College
Regional Variations in Retirement Age
Regional nuances in retirement age are evident across the U.S., with Southern states generally displaying lower average retirement ages. However, exceptions exist, such as Alaska and West Virginia boasting the lowest average retirement age at
61, while Washington, D.C., claims the highest at 67. Notably, Hawaii, Massachusetts, and South Dakota follow closely with a 66 average retirement age.
Average Retirement Age by State
| State | Average Retirement Age | State | Average Retirement Age |
|---|---|---|---|
Source: Money Talks News/U.S. Census Bureau American Community Survey