The age at which most people retire is an important question when planning for retirement. The most common retirement age in many countries has historically been 65. However, with increasing life expectancies and rising Social Security and pension costs, many countries have been raising their full retirement ages to 67 or higher.
What is the full retirement age for Social Security in the US?
The full retirement age for Social Security retirement benefits in the United States is currently 66 for people born between 1943 and 1954. It rises by 2 months each year for those born between 1955 and 1959 until reaching 67 for anyone born in 1960 or later.
At what age can I get full Social Security benefits?
You can get full Social Security retirement benefits in the U.S. once you reach your full retirement age, which is age 66 for those born between 1943 and 1954, and age 67 for anyone born in 1960 or later. If you claim benefits before reaching full retirement age, your monthly amount will be permanently reduced. Delaying claiming until after full retirement age increases your benefit amount.
What percentage of Americans retire at age 67?
According to a 2021 Gallup poll, only 16% of Americans say they plan to retire at age 67. The most common age that Americans report they plan to retire is 66, with 19% indicating this age. 12% plan to retire at age 65, 10% at age 70, and 15% at an older age. Just 7% of Americans anticipate they will retire before age 65.
What is the average retirement age in the United States?
The average retirement age in the U.S. is approximately 65 for men and 63 for women, according to the Center for Retirement Research at Boston College. However, this average age has been increasing over time. Back in the early 1990s, average retirement ages were under 62 for both men and women. Rising Social Security full retirement ages, reduced benefits for early claimers, and the shift away from traditional pensions has led to later retirements.
How has the average retirement age changed over the past decade?
Over the past decade, the average retirement age in the United States has steadily increased:
| Year | Average Retirement Age |
|---|---|
| 2010 | 64 |
| 2011 | 64 |
| 2012 | 64 |
| 2013 | 64 |
| 2014 | 64 |
| 2015 | 65 |
| 2016 | 65 |
| 2017 | 65 |
| 2018 | 65 |
| 2019 | 66 |
As shown, the average retirement age held steady at 64 from 2010-2014 before rising to 65 in 2015. It has continued creeping up, reaching 66 in 2019 according to Gallup survey data. This gradual increase reflects workers delaying retirement, perhaps due to financial constraints and improved health at older ages.
How does the US compare internationally in retirement ages?
The retirement age in the United States is lower than many other developed countries. According to 2021 OECD data, the average effective age of retirement across OECD countries is approximately 65.5 for men and 64.2 for women. The U.S. falls slightly below the OECD averages.
Some countries with notably higher retirement ages than the U.S. include:
– Iceland: 67 average effective retirement age
– Israel: 67 for men, 65 for women
– Japan: 69 for men, 67 for women
– South Korea: 71 for men, 69 for women
Countries with lower retirement ages than the United States include:
– France: 60 for men, 62 for women
– Luxembourg: 60 for men, 60 for women
– Belgium: 61 for men, 61 for women
– Austria: 61 for men, 60 for women
So while the U.S. retirement age is moderately low compared to global patterns, many advanced economies have comparable or lower ages of retirement.
What is the most common age for retiring in the US?
While the average retirement age in the U.S. is approximately 65, the most commonly reported age that Americans expect to retire is 66, according to various surveys and studies. Here is a breakdown of the most common retirement ages:
– 19% of Americans plan to retire at age 66.
– 16% plan to retire at age 65.
– 12% expect to retire at age 67.
– 10% intend to retire at age 70.
– 8% aim to retire between 68-69.
So while 67 has recently become the Social Security full retirement age, and 65 remains a popular mental target, the mode of expected retirement age is 66 for American workers.
Why are people working longer and delaying retirement?
There are several key reasons driving the trend of Americans working to older ages and postponing retirement, including:
– Longer life expectancies meaning retirement funds must last longer.
– Declining availability of traditional pensions, which provided guaranteed income.
– Reduced benefits for early Social Security claimers encouraging delayed filing.
– Greater numbers of women working full careers and retiring later.
– Improved health allowing more people to work into their 60s and 70s.
– Inadequate retirement savings forcing people to work longer.
– Fewer physically demanding jobs enabling later retirement.
Working a couple additional years boosts Social Security benefits, grows retirement accounts, and reduces the period of time savings must fund. Delaying retirement has therefore become necessary for many Americans seeking retirement security.
What percentage of Americans work past age 65?
Approximately 20% of Americans age 65 and over remain in the workforce, according to 2021 data from the Bureau of Labor Statistics. The percentage of people working past 65 has increased significantly over the past couple decades:
| Year | Percent of 65+ Americans Working |
|---|---|
| 2000 | 12% |
| 2010 | 16% |
| 2020 | 19% |
Labor force participation rates begin falling after age 65, but still remain substantial. At ages 70-74, over 10% of Americans still work. Even past 75, nearly 5% remain employed either full or part-time.
How satisfied are workers who retire at 65 versus those who retire older?
Studies find that retirement satisfaction depends not just on the age a person retires, but more so on whether they had the ability to choose when to retire. Those who voluntarily decided to work longer tend to be more satisfied than those forced to work for financial reasons or lack of options.
That said, surveys indicate higher retiree satisfaction among those who retired after age 65 compared to those retiring at 65 or earlier, on average. For example:
– A ARP study found 82% of retirees 66+ were very satisfied, versus 69% of those under 66.
– Gallup data showed 96% of retirees 70+ and 95% of 65-69 were satisfied, versus 85% among pre-65 retirees.
Working longer to improve retirement readiness appears to lead to greater retirement happiness and contentment on average. But personal preferences and unique circumstances remain most influential.
What percentage of people over 67 work?
Approximately 32% of Americans between ages 67-69 remain in the workforce, according to 2021 data from the Bureau of Labor Statistics. The percentage declines at older ages but remains substantial:
– Ages 70-74: 22% still working
– Ages 75 and older: 8% still working
While full retirement before 67 remains common, employment past the full Social Security retirement age is also now the norm for a significant portion of older Americans.
In fact, the fastest growing segment of the U.S. labor force is individuals 55 and older. So working to 67, 70, or even beyond has become more standard with longer modern lifespans.
How many 75+ year olds continue to work?
According to the Bureau of Labor Statistics, nearly 2 million Americans age 75 and older remain in the U.S. workforce. This represents an 8.4% labor participation rate among this advanced age group.
The number of 75+ workers has grown rapidly over the past two decades:
| Year | 75+ Workers |
|---|---|
| 2000 | 1 million |
| 2010 | 1.4 million |
| 2020 | 1.9 million |
Approximately half of workers 75+ are working part-time. But nearly 1 million of this advanced age group still work full-time. Modern seniors are staying active and engaged in the workforce at rates not seen in prior generations.
Do people regret retiring too early?
Surveys consistently show a significant portion of retirees regret retiring as early as they did. For example:
– AARP found 24% of retirees wished they had retired at an older age.
– A Gallup poll showed 49% of retirees retired earlier than they had planned to.
– About 2 in 5 retirees surveyed by Allianz expressed regrets retiring so early.
Reasons for regretting early retirement include:
– Insufficient income and savings.
– Loneliness and lack of purpose.
– Declining health and activity levels.
– Early Social Security benefits being reduced.
Working longer to improve retirement finances and maintain social engagement helps avoid these regrets. But flexibility to accommodate changing plans and gradual retirement transitions are also important for retirement satisfaction.
Should I work until 70 to maximize my Social Security benefits?
Working until at least your full retirement age (66-67 for most modern retirees) can help maximize your Social Security benefits. But delaying benefits beyond your full retirement age up until age 70 provides an added 8% boost to your monthly payments for each year you defer.
For example, if your full retirement age is 67, you can earn:
– 100% of your benefits at 67
– 108% at 68
– 116% at 69
– 124% at 70
So working to age 70 allows you to lock in your highest possible monthly payment. But you do not necessarily need to remain employed – you can retire from your career and simply defer claiming benefits during ages 67-70. Working longer provides extra income and keeps benefits growing.
Conclusion
While most Americans retire before age 67, an increasing percentage have been working to 67 or beyond in recent decades as longevity has improved. Leading factors driving later retirement ages include better health, reduced pensions, inadequate savings, and higher Social Security full retirement ages. On average, Americans retiring after 65 report higher satisfaction levels, as do those who voluntarily chose to retire later. Working until one’s full retirement age or a few years beyond can help ensure adequate retirement income and preparedness. But flexibility and solid financial planning remain essential regardless of exact retirement timing.
