Traditionally, 65 has been considered an ideal age to retire, but when and how people retire seems to be changing.
“This is not your parents’ or grandparents’ retirement,” says Marilyn Suey, certified financial planner and founder of The Diamond Group Wealth Advisors in San Ramon, California. Rather than checking out of a job and spending idle days at home, many retirees are opting for a second act, according to Suey.
Some people leave their jobs early to pursue a second career or pursue a passion project. At the same time, advances in modern medicine have extended lifespans, enabling many to continue working well into their 70s and beyond. And yet there is still something to be said for retiring at the traditional age.
So, what is the best age to retire? It all depends on your unique situation and goals.
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Retire Early to Maximize Time Spent on Personal Pursuits
Retiring early once meant leaving the workforce around age 62, when people first became eligible for Social Security benefits. In recent years, that benchmark has shifted, with more people aiming to step away in their 50s or even sooner — driven by a mix of factors, including the FIRE movement (financial independence, retire early), changing attitudes about work, and a greater focus on flexibility and lifestyle.
The idea of quitting your job this early can be tantalizing, but it comes with a unique set of challenges.
“You get to enjoy life a little more, but with that, it’s more time you have to self-fund,” says Kaitlyn Haney, a certified financial planner and associate wealth advisor with Focus Partners Wealth in Pittsburgh.
Not only will you need a nest egg large enough to sustain your financial needs for 40 or more years, but you may not have immediate access to key retirement funds and programs when you leave work. For instance, you’ll need to find your own health insurance since Medicare doesn’t start until age 65, and tax-advantaged retirement funds can’t be tapped without penalty before age 59 1/2.
Pros and Cons of Early Retirement
Pros
– You have more time to pursue personal interests and activities.
– There’s a greater possibility of good health in retirement.
Cons
– You may need to buy your own health insurance.
– You need significant financial reserves to sustain a long retirement.
A Mid-60s Retirement to Balance Personal and Financial Needs
Retiring in your mid-60s still makes sense for many people. At this point, you are old enough to have hopefully amassed sizable savings, but you are still young enough to enjoy active pursuits such as travel.
Plus, Medicare kicks in at age 65, which eliminates the need to work for health insurance, and full Social Security retirement benefits are available at age 66 or 67, depending on your birth year. Once you begin both programs, quitting your job or ramping down hours might be best from a tax perspective.
“A lot of people don’t think Social Security is taxable at all,” Haney says. However, if you have enough other income, a portion of your Social Security benefits may be subject to federal tax.
Haney also notes that Medicare premiums are based on your income from two years prior. You may be assessed a higher monthly premium if you are a high earner. Between the possibility of taxes on Social Security and higher Medicare premiums, workers may decide it is best to step out of the workforce at or around age 65.
Pros and Cons of Traditional Retirement
Pros
– Medicare eligibility begins at age 65.
– Full Social Security retirement benefits are available at age 66 or 67, depending on your birth year.
Cons
– You have fewer years in retirement.
– There’s a greater possibility of job burnout before retirement.
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Retire Late if You Enjoy Work or Need to Shore Up Reserves
If you delay retirement, you’ll get an 8% increase in Social Security benefits for each year you wait to claim benefits past your full retirement age until age 70. Extra time in the workforce could also help you save more or wipe out any remaining debt.
“There are a lot of pros to continuing working,” says Steve Parrish, adjunct professor of advanced planning at The American College of Financial Services. “It not just helps financially, but it helps mentally.”
Many people enjoy what they do, and in that case, there is no reason to stop working after hitting an arbitrary age. Parrish and Suey note they have continued to work past age 70 for this reason. The trade-off for working later in life is that you may have to forgo some activities if your health declines before you can pursue them in retirement.
Pros and Cons of Late Retirement
Pros
– You enjoy larger Social Security payments by delaying benefits until age 70.
– A positive work environment can foster a sense of purpose and social interaction.
Cons
– You may have less time to enjoy retirement activities.
– You may miss out on some activities if your health declines.
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How to Decide When to Retire
As you consider your options, here’s a side-by-side look at how your Social Security benefits change at milestone ages.
| Age | Social Security Impact | Primary Benefit |
| 62 | Permanently reduces Social Security benefits by 30% | A longer retirement and chance to enjoy activities when health may be best |
| 65 | Permanently reduces Social Security benefits by about 13% | Convenience of beginning Social Security and Medicare at the same age |
| 67 | Full benefits for those born in 1960 or later | No reduction in Social Security benefits |
| 70 | Increases Social Security benefits up to 24% | Maximum Social Security benefit possible |
Determining the best age to retire is a highly personal process that involves considering your savings, risk tolerance, individual goals and health expectations.
“You really have to know your numbers,” Suey says.
Retirement doesn’t have to be an all-or-nothing proposition, either.
“More and more, a lot of people are doing this phased retirement,” Parrish says.
For example, a worker may quit their full-time job but continue to work as a consultant or on a freelance basis in the same field. Others may open a business or pursue a second career in a different industry. Switching to remote work or part-time hours is another option for older Americans who are getting ready to retire but don’t want to leave the workforce completely.
Still, many people end up retiring earlier than expected, Parrish notes. They or a loved one may encounter health issues that make it impossible to continue working.
If you aren’t sure whether you have enough money to retire or need help weighing your options, a financial advisor can walk you through various scenarios and help you determine the ideal time to call it quits.
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What Is the Best Age to Retire? originally appeared on usnews.com
Update 04/24/26: This story was previously published at an earlier date and has been updated with new information.
