Retirement dreams often come with a twist. New research shows that most Americans don’t retire at 65 as they’d planned—and it’s usually not by choice. The median retirement age in the U.S. is actually 62, with many retirees stepping away from work much earlier than expected due to unexpected circumstances.
Early Retirement: Health and Job Losses Take a Toll
According to the Transamerica Center for Retirement Studies, nearly 60% of retirees ended their careers earlier than they intended, with almost half citing health issues or physical limitations. Job loss, organizational changes, and company closures also forced many Americans to retire before they were ready. This early retirement trend highlights the financial fragility many face, as they often find themselves unprepared for the long haul of retirement.
As life expectancy rises, older Americans are at risk of outliving their savings. Retirement experts warn that this could create financial strain, particularly if unexpected costs, such as healthcare, arise. Only about half of retirees have participated in 401(k) or similar retirement plans, and most rely on Social Security as their primary source of income. However, many Americans claim Social Security early, locking in smaller monthly benefits and further straining their finances.
Despite the financial challenges, retirees report high levels of satisfaction, with nearly 90% expressing happiness and fulfillment in their post-work lives. Many retirees focus on relationships with family and friends, finding new freedom in their daily routines. This underscores that retirement is often more about freedom and personal time than financial security alone, even if the path to retirement wasn’t as smooth as planned.
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