Every day, approximately 11,200 Americans leave the workforce and claim their well-deserved retirement. This figure is routinely recorded, but behind it lies a contradiction that several recent studies have consistently documented: the age at which workers expect to leave the labor market does not match the age at which they actually do.
The gap between these two numbers has been widening for decades and today defines one of the most active debates surrounding the personal finances and the retirement benefits in the United States.
Most Americans Retire Earlier Than Planned
According to a MassMutual survey conducted in 2024, the average retirement age in the country is 62. However, the Center for Retirement Research at Boston College records data that differs by gender: men retire on average at 62.65 years while women do it at 63.
Gallup, for its part, places the overall average reported by retired people at 61 years old, a number that in 1991 was 57. The range varies according to the source and methodology, but the direction is constant: the retirement age goes up.
Meanwhile, employed workers are projecting later dates. Gallup’s annual survey on economics and personal finance shows that the target retirement age went from 60 years old in 1995 to 66 years old.
The Distance Between What Is Planned and What Happens
According to the latest available data, the Transamerica Center for Retirement Studies, in its 2025 edition, found that 34% of workers expect to retire after age 65, 23% plan to retire at that exact age, and 29% aspire to retire earlier. Thirteen percent do not consider the possibility of retiring at all.
What complicates the picture is that a significant proportion of retirements are not planned. The Transamerica Center for Retirement Studies reported in 2024 that 58% of Americans end up retiring earlier than they had planned.
The reasons fall into two main categories, according to studies by the Employee Benefit Research Institute and the Social Security Administration: about 31% of early retirements are due to health problems, and 32% results from changes in employment, such as layoffs, restructurings, or business closures.
Most Workers Don’t Choose When to Retire
This dynamic means that a significant portion of the workforce doesn’t choose when to leave the market. The decision is conditioned by external factors, rendering savings plans based on a specific retirement date ineffective.
In a survey conducted in June 2024 among 1,001 adults, Empower asked at what age a person should retire. The average response was 58 years old, a figure that is considerably different from both the declared plans and the statistical reality.
The gap between desired, planned, and actual retirement income is significant. Wanting to retire at 58, planning to do so at 66, and ending up retiring at 61 or earlier due to unforeseen circumstances represents a scenario of financial exposure that several analysts have identified as one of the structural problems of the pension system of the US withdrawal.
The Retirement Age Has Risen Steadily Since the 1990s
The increase in the average retirement age is due to several simultaneous factors. One of the most direct is the change in the Full Retirement Age (FRA) of Social Security, which went from 65 years for previous generations to 67 for those born in 1960 or later, as a result of legislative reforms initiated in 1983.
That modification established concrete incentives to extend working life: retiring at 62 —the minimum age to apply for benefits— implies a reduction of up to 30% compared to the amount that would be received by waiting until full age.
Social Security numbers accurately illustrate that difference. Retiring at 62 generates approximately $2,831 monthly; doing it at the FRA —between 66 and 67 years old— raises that amount to approximately $4,018 and postponing retirement until 70 years brings the monthly profit to about $5,108.
This pay scale acts as a mechanism of pressure on individual decisions, particularly for those who depend on Social Security as a primary source of income.
The Role of Medicare Adds Another Variable
Medicare coverage begins at age 65, making that age a functional threshold for a portion of the population: retiring earlier means paying for private health insurance during the waiting period, which directly impacts the financial viability of early retirement.
The retirement age by gender shows a particularity that several studies have documented: although women accumulate less income throughout their working lives—partly due to the persistence of the gender pay gap— they tend to retire earlier than men. Boston College records a two-year difference: 63 versus 65.
The reasons are numerous. One of the best documented is the responsibility of family care. According to data from the specialized website A Place for Mom, approximately 75% of unpaid caregivers for spouses, elderly parents, or other dependent adults are women.
This burden can precipitate unplanned retirements. Similarly, exposure to adverse situations in early life—such as childhood poverty or chronic health conditions—is also associated with earlier retirement, regardless of gender.
Despite that lower average, the historical trend shows that the retirement age for women has increased more than that for men in recent decades. In 1962, the difference was marked; today it has narrowed, reflecting both greater female participation in the labor market and changes in retirement plan conditions and pension system incentives.
