Every day, about 11,200 Americans exit the workforce. Although the average retirement age is 62, according to a 2024 Mass Mutual survey, it can be hard to accurately predict when you will retire.
In 2025, more than 4.1 million Americans will turn 65. The full retirement age is 66 if you were born from 1943 to 1954, and it increases gradually if you were born between 1955 and 1960 until it reaches 67. Among workers planning for retirement, 69% expect that the official retirement age will be higher by the time they are ready to retire, according to data from Talker Research.
[Read: What Is the Average Retirement Savings Balance by Age?]
Common Reasons for Early Retirement
Unforeseen circumstances often lead to early retirement. Common reasons to retire early include health issues, the onset of a disability or choosing to act as a caregiver for a loved one.
One key consideration for retiring early is health insurance, as Medicare is available at age 65. You may need to look for your own coverage until you reach that milestone.
“Health care exchanges make it much easier to budget and shop for insurance, and subsidies exist to help underwrite the cost of insurance,” said Matt Bruce, president of Pointer Financial Group in Wauwatosa, Wisconsin, in an email. “However, we have seen many early retirees opt to use health care sharing companies to cover short-term health expenses between their retirement and when Medicare is available.” If your spouse is still working, you may be eligible for coverage through their insurance.
Early retirement also comes with various financial implications.
“Early retirees may face a lower Social Security benefit and have to rely more heavily on their retirement savings,” said Kami Adams, retirement income specialist at Creative Legacy Group in LaGrange, Georgia, in an email. “Retiring early means more years in retirement, which can increase the risk of running out of money later in life.”
[Read: If You Want to Retire in 2026, Here’s What You Need to Prep Now]
Forced Out of the Workforce
Some people end up in early retirement because they are offered an early retirement incentive package or their skills are outdated. Workplace restructuring, such as downsizing or business closure, could also result in job loss.
After leaving one job, older workers may find it difficult to replace their full salary right away. They might need to strategize and tap their networks to get a job that aligns with their experience and area of expertise. Remote and flexible positions may be a good fit for those interested in part-time work.
A Fortuitous Early Retirement
There can also be positive reasons workers enter retirement early. Perhaps your investments performed better than expected, or you inherited a windfall and were able to retire sooner than planned. Some retirees have followed the financial independence, retire early movement, also known as FIRE, which enabled them to quit work in their 40s or 50s. Doing so can open doors to pursuing other activities or spending more time with family.
[Read: How Long Will Your Retirement Savings Last]
Aiming to Delay Retirement
Many workers say they hope to retire at an older age than is currently typical. There can be valuable incentives to delay retirement, including a few extra years to collect a salary and avoid tapping your nest egg.
“Delaying retirement can have several benefits, including a higher Social Security benefit, more time to save for retirement and a reduced risk of running out of money later in life,” Adams said. “However, delaying retirement can also mean missing out on the opportunity to enjoy retirement while still in good health.”
You’ll want to weigh all the factors before making a final decision regarding when to quit work. You can then map out a budget that aligns with your retirement goals. Keeping an open mind can be helpful, as you’ll be able to adapt if you retire earlier than planned.
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What Is the Average Retirement Age in the U.S.? originally appeared on usnews.com
Update 03/19/25: This story was published at an earlier date and has been updated with new information.
