According to a Gallup survey, the average American retirement age is 61. The average U.S. retirement age was 57 in 1991 and 59 in 2002. The poll found that people who are still working in 2022 anticipate retiring at 66.
People consider many factors when deciding whether to retire. These include how old they have to be in order for them to claim Social Security benefits or enroll in Medicare. There are many other factors that people consider, such as their expected lifestyle, expenses, health, qualifications for certain retirement benefits, and how old they will be when they feel they can retire.
According to Gallup, the U.S. average retirement age has remained relatively constant since 2012.
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Average Retirement Age In the U.S. |
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What percent of people will retire at 65?
Americans are now waiting longer to retire than in the past two decades. In the United States, for example, between 2002 and 2007, 41% of U.S. adult 60-64-year-olds and 76% of 65-69-year-olds were retired. Gallup reports that between 2016-2022 32% and 70% of U.S. adult 60-64 years old, respectively, were retired.
Pew Research Center surveyed 24% of U.S. adults 50 and older who reported that they had delayed or considered retirement because of the pandemic in 2021.
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Delaying retirement can be caused by financial losses, such as the Great Recession or the COVID-19 pandemic.
What age do you need to be to retire?
Many Americans consider when they are eligible for certain retirement benefits to be a major factor in their decision to retire. There are many options for retiring at 60. However, it may be worth waiting longer to take advantage of these benefits.
Social Security
Social security retirement benefits can be started for most people at age 62. But, receiving Social Security benefits at 62 is a significantly lower level.
The age at which you can receive 100% of your Social Security retirement benefits, is called full retirement age. It varies based on the birth year. You could get a bigger check if you wait until your full retirement age before applying for Social Security retirement benefits.
Social Security full retirement age
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Medicare
Medicare is another vital retirement benefit that many Americans enjoy. It is a federal health insurance program that covers people aged 65 and over, as well as those with certain disabilities or illnesses. If you are a qualified disabled or have a qualifying disease, you can enroll in Medicare up to three months before your 65th birthday.
Distributions from retirement account
Starting at age 59 1/2, you can withdraw penalty-free from your 401(k), or individual retirement account. Some exceptions apply for qualified disabilities, educational expenses, and first-time homebuyers. Otherwise, early withdrawals could mean paying.
A 10% tax
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Alternately, you can withdraw money from a Roth IRA tax-free at anytime. If you have contributed $50,000 to a Roth IRA which has reached $300,000., you can withdraw your $50,000 initial contribution without any tax liability.
Check with your pension administrator for information about when you can begin receiving your retirement benefits.
Factors to Consider Before You Retire
Retirement is a personal decision. Before you make that decision, consider these factors:
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You need to plan for your lifestyle and budget. Someone who plans to travel for a few months in retirement might have different expenses than someone who wants to live in a small town.
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Are you eligible for retirement benefits?
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What are you going to do with your time? You may need additional income if you have expensive hobbies, such as collecting cars or traveling.
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Are you ready to retire? The retirement calculator will help you determine how much you need to save for the retirement you desire.