What Age Do Most People Retire In America? (2022)

If you plan to retire, it’s good to know what age do most people retire in America. You don’t want to be a misfit and retire too soon. Otherwise, what are you going to do with the rest of your life? You also don’t want to retire too late and miss out on doing all the things you want to do.

Many Americans are in a difficult financial situation with only about $17,500 in retirement savings for those between the age of 56 and 61. With such low retirement savings according to the Economic Policy Institute, you’d think most Americans are never going to retire.

The truth is, most Americans do eventually retire. Let’s look at the age most people retire in America so you have a baseline retirement goal to shoot for.

What Age Do Most People Retire?

According to the Life Insurance And Market Research Association (LIMRA), 69% of Americans retire by age 66. Roughly 51% retire between theagesof 61and65. By age75, 89% of Americans have left the labor force.

It surprises me that less than 1% of Americans retire before age 50. With the way the Financial Independence Retire Early (FIRE) movement has taken off, as well as the rise of freelance work, you’d think the percentage would be higher.

Further, I’ve been writing about retirement on Financial Samurai since 2009. Tens of millions of readers have read this site since. I’m hopeful that during this time, more people have built more wealth and have been able to retire earlier as a result.

Take a look at this graphic below that shows what age do most people retire in America.

What Age Do Most People Retire In America? (1)

How Are Retirees Able To Survive?

LIMRA estimates the average American household has about $253,200.But most of that is owned by the wealthy.

(Video) At What Age Do Most People Retire?

The median holding is just $17,500, which matches up well with the Economic Policy Institute’s estimate of $17,000 (from 2013). 75% of Americans have less than $100,000 saved.

What Age Do Most People Retire In America? (2)

The reason why most Americans are able to retire by 66 despite so little wealth is due to Social Security, a traditional pension, and retirement work plans.LIMRA reports that some 41% of retirees have annual income less than $25,000. Of retirees with income over $50,000 a year, about 80% draw from a pension or retirement plan.

Unfortunately, very few Americans under 40 will have a traditional pension that can fully support a retirement anymore. And even if there was such a thing as a pension, with the typical American changing jobs every three years, there’s no way today’s workers will stay long enough to ever collect.

Retirement Savings Is Mostly Up To You

Therefore, the focus on retirement savings needs to be on maxing out a 401K, an IRA, and other pre-tax retirement plans while also saving additional money in after-tax investment accounts.

Just in case there’s a job change, a need for liquidity, or the desire to retire before the 10% early withdrawal penalty goes away, having a robust after-tax investment portfolio is a wise move.

For added security, it’s wise to build even multiple income streams to reduce concentration risk. There’s not one person I know who retired before the age of 50 who doesn’t have at least three income streams beyond a traditional retirement plan.

To learn more about building passive income, take a look at my newly updated post: Ranking The Best Passive Income Investments. This posts highlights the best passive income investments to support your retirement. Because frankly, having a 401(k) and Social Security is not enough.

What Age Do Most People Retire In America? (3)
(Video) Retirement Age in USA

Part-Time Work For Supplemental Retirement Income

Despitethe anemic retirementincomefigures, the gig economyenablesmillions of Americans toworkpart-timeandsupplement or replace a full-time income source.

I’m pretty sure if allwentto hell, I could earn at least $50,000 a year driving for Lyft, assembling furniture for Task Rabbit, and being the friendliest greeter atWalmart. But then,byworking 50+ hours a week,I wouldn’t really be retired.

Working to help supplement your retirement income is what I call Barista FIRE. You’re essentially working to build an income buffer or cover an income gap between your desired lifestyle expense and how much your taxable passive investments spit out.

You might even be able to get subsidized healthcare if you work enough hours.

The one expense that is really weighing heavily on my wife and I in retirement is our healthcare insurance. We pay a whopping $2,380/month in unsubsidized healthcare insurance for a family of four.

What Age Do Most People Retire In America? (4)

Keep Housing Costs Low To Help You Retire

The key to surviving retirement on a low income is owning a home debt free and having sufficient medical coverage. With health and living expenses taken care of, surviving off just $2,000 a month,while challenging, is doable.

I highly recommend trying to keep housing expenses to 10% of your annual gross income. If you do, retiring early becomes much easier.

If you’re fortunate enough to have children who call you back, they might even come toyourrescue if things gettoo difficult. That said, raising children can be very expensive.

(Video) How Much Americans Really Have Saved For Retirement

For those living in a high-cost area of the country with a couple kids, earning $300,000 a year only provides a comfortable middle class lifestyle. You won’t be able to retire before 60, let alone 50.

With mortgage interest rates at all-time lows in 2020+, I highly recommend everyone refinance their mortgage ASAP. I refinanced my mortgage for free to a 7/1 jumbo ARM at 2.125% and am saving about $1,000 a month in cash flow.

Check out Credible for some competitive rates where qualified lenders compete for your business. They are my favorite lending market place to get free mortgage rate quotes. Take advantage of low mortgage rates.

NMLS ID# 1681276, Address: 320 Blackwell St. Ste 200, Durham, NC, 27701

You’ll Stay Busy In Retirement

Although I left full-time work at age 34, I’ve never stopped doing some things here and there to keep busy.

For example, I’ve continued to publish three times a week on Financial Samurai since 2009 out of enjoyment and mental stimulation. As a result, this site brings in some advertising revenue to supplement my retirement.

Regardless of what age do most people retire in America, you should always stay active once you retire. Most will be fine because most will retire to something, not from something.

Your focus simply shifts from something you’re sick of doing to something that’s much more interesting. If you’re lucky enough to love what you do, then by all means work until the very end!

Read The Best Retirement Planning Book Today

If you want to read the best book on achieving financial freedom sooner, check outBuy This, Not That: How to Spend Your Way To Wealth And Freedom. BTNT is jam-packed with all my insights after spending 30 years working in, studying, and writing about personal finance.

(Video) Why do so many people retire in their early 60s?

Building wealth is only a part of the equation. Consistently making optimal decisions on some of life’s biggest dilemmas is the other. My book helps you minimize regret and live a more purposeful life as you build more passive income.

You can buy a copy onAmazontoday. The richest people in the world are always reading and always learning new things. Learn from those who are already where you want to go.

Manage Your Retirement More Effectively

Check out Personal Capital’s freeRetirement Planning Calculator, using your real data to run thousands of algorithms to see what your probability is forretirement success.

Once you register, simply go to Planning -> Retirement Planner to run your various retirement scenarios. There’s no better free tool online to help you track your net worth, minimize investment expenses, and manage your wealth.

Real Estate Diversification

Real estate is my favorite asset class to help you retire and stay retired. It is a tangible asset that is less volatile and produces retirement income.

Look to diversify your real estate investments across the country where valuations are lower, net rental yields are higher, and growth rates may be higher. The global pandemic has accelerated demographic shifts towards lower cost areas of the country due to the work from home trend.

Check outFundriseand their eREITs. eREITs give investors a way to diversify their real estate exposure with lower volatility compared to stocks. Income is completely passive and there is much less concentration risk.

If you are bullish on the demographic shift towards lower-cost and less densely populated areas of the country, check outCrowdStreet. CrowdStreet focuses on individual commercial real estate opportunities in 18-hour cities.


Both platforms are free to sign up and explore.I’ve personally invested $810,000 in real estate crowdfunding across 18 properties to earn income 100% passively.

What Age Do Most People Retire In America is a Financial Samurai original post. Sign up for the free Financial Samurai newsletter for more nuanced personal finance content. More than 50,000 people have already!


What Age Do Most People Retire In America? ›

Working Americans say they expect to retire at an average age of 66, up from 62 in 2002, according to a 2022 Gallup poll. But most retirees don't stay on the job nearly that long. The average retirement age is 61 in 2022, up from age 59 in 2002, Gallup found.

What is the most common age for retirement in the US? ›

Men retire at an average age of 64.6 years, while for women, the average retirement age is 62.3 years.

What age is the best age to retire at? ›

The normal retirement age is typically 65 or 66 for most people; this is when you can begin drawing your full Social Security retirement benefit. It could make sense to retire earlier or later, however, depending on your financial situation, needs and goals.

Is it better to retire at 65 or 62? ›

The earliest you can start Social Security benefits is age 62. However, just because you can start benefits does not mean that you should. Your monthly Social Security paycheck increases significantly for every month and year you delay starting, up until your full retirement age (around age 67).

Is it better to retire at 62 or 63? ›

Monthly Social Security payments are reduced if you sign up at age 63, but by less than if you claim payments at age 62. A worker eligible for $1,000 monthly at age 66 would get $800 per month at age 63, a 20% pay cut. If your full retirement age is 67, you will get 25% less by signing up at age 63.

How much do most people retire with? ›

On average, Americans have around $141,542 saved up for retirement, according to the “How America Saves 2022” report compiled by Vanguard, an investment firm that represents more than 30 million investors. However, most people likely have much less: The median 401(k) balance is just $35,345.

What is the average age of retirement today? ›

While the average U.S. retirement age is 63, when you decide to retire is dependent on tons of factors: Savings. The average Social Security monthly retirement benefit is roughly $1,620.

Do early retirees live longer? ›

When they looked at the sample of 2,956 people who had begun participating in the study in 1992 and retired by 2010, the researchers found that the majority had retired around age 65. But a statistical analysis showed that when people retired at age 66 instead, their mortality rates dropped by 11%.

How much will I get from Social Security if I make $30000? ›

How much your Social Security benefits will be if you make $30,000 ...

Is retiring at 60 too early? ›

Retiring early at age 60 is doable, with adequate planning. It may take some sacrifices in saving more money now or reducing expected post-retirement living standard. However, it's only a few years before most people retire anyway.

What is the average Social Security check at 62? ›

According to the SSA's 2021 Annual Statistical Supplement, the monthly benefit amount for retired workers claiming benefits at age 62 earning the average wage was $1,480 per month for the worker alone. The benefit amount for workers with spouses claiming benefits was $2,170 at age 62.

How can I live for retirement with no money? ›

Seek Employers Who Offer Pension

If you're wondering how to retire at 50 with no money, find a position with a company that offers a pension. With a little extra thought and planning, working for 10 or 15 years at a company with a pension could make a positive impact on your retirement savings.

How much Social Security will I get if I make 60000 a year? ›

That adds up to $2,096.48 as a monthly benefit if you retire at full retirement age. Put another way, Social Security will replace about 42% of your past $60,000 salary. That's a lot better than the roughly 26% figure for those making $120,000 per year.

What is the average Social Security check? ›

Social Security offers a monthly benefit check to many kinds of recipients. As of June 2022, the average check is $1,542.22, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient.

What should you not do in retirement? ›

10 Things Not to Do When You Retire
  1. Enjoy, but Don't Be Undisciplined. ...
  2. Don't Immediately Downsize Your Home. ...
  3. Don't Blow Your Savings. ...
  4. Don't Neglect Your Estate Planning. ...
  5. Don't Expect Relationships to Remain Unchanged. ...
  6. Don't Be Afraid to Try New Things. ...
  7. Don't Let Loneliness Creep Into Your Life. ...
  8. Don't Neglect Your Appearance.

How much Social Security will I get if I make $75000 a year? ›

If you earn $75,000 per year, you can expect to receive $2,358 per month -- or about $28,300 annually -- from Social Security.

How much does the average 70 year old have in savings? ›

How much does the average 70-year-old have in savings? According to data from the Federal Reserve, the average amount of retirement savings for 65- to 74-year-olds is just north of $426,000.

How much does the average 60 year old have in savings? ›

Just how much does the average 60-year-old have in retirement savings? According to Federal Reserve data, for 55- to 64-year-olds, that number is little more than $408,000.

What does the average American have in savings? ›

And according to data from the 2019 Survey of Consumer Finances by the US Federal Reserve, the most recent year for which they polled participants, Americans have a weighted average savings account balance of $41,600 which includes checking, savings, money market and prepaid debit cards, while the median was only ...

Is it better to take Social Security at 62 or 67? ›

The short answer is yes. Retirees who begin collecting Social Security at 62 instead of at the full retirement age (67 for those born in 1960 or later) can expect their monthly benefits to be 30% lower. So, delaying claiming until 67 will result in a larger monthly check.

What profession has the shortest lifespan? ›

The transport domain is characterized by the shortest life expectancy, i.e., 14.7 years for men and 20.0 years for women. The teaching domain is characterized by the longest life expectancy, i.e., 18.3 years for men and 23.1 years for women. For men, the difference amounts to 3.6 years; for women, this is 3.1 years.

What do retired people do all day? ›

Retirees enjoy over seven hours of leisure time per day, according to 2019 data from the American Time Use Survey. They use their newfound free time in a variety of ways, including taking up new hobbies, relaxing at home, watching TV and lingering over daily activities. Many retirees also continue to work or volunteer.

Is it better to keep working or retire? ›

Continuing to work for as long as possible will absolutely give you more choices and financial freedom in retirement,” Duran explains. “Working for a longer period of time not only gives you more savings and builds your safety net, but it also provides health benefits which you don't have to pay for personally.”

What is the highest Social Security check? ›

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2022, your maximum benefit would be $3,345. However, if you retire at age 62 in 2022, your maximum benefit would be $2,364. If you retire at age 70 in 2022, your maximum benefit would be $4,194.

Can I get Social Security if I only worked 10 years? ›

Although you need at least 10 years of work (40 credits) to qualify for Social Security retirement benefits, we base the amount of your benefit on your highest 35 years of earnings.

Do you pay taxes on Social Security? ›

Some people who get Social Security must pay federal income taxes on their benefits. However, no one pays taxes on more than 85% percent of their Social Security benefits. You must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000.

Can I retire at 60 with $600? ›

It's possible to retire with $600,000 in savings with careful planning, but it's important to consider how long your money will last. Whether you can successfully retire with $600,000 can depend on a number of factors, including: Your desired retirement age. Estimated retirement budget.

How much money should you have to retire at 60? ›

To retire by age 67, experts from retirement-plan provider Fidelity Investments say you should have eight times your income saved by the time you turn 60. If you are nearing 60 (or already reached it) and no where close to that number, you're not the only one behind.

How much money do you need to retire comfortably? ›

Most experts say your retirement income should be about 80% of your final pre-retirement annual income. 1 That means if you make $100,000 annually at retirement, you need at least $80,000 per year to have a comfortable lifestyle after leaving the workforce.

How much Social Security will I get if I make $120000 a year? ›

If you make $120,000, here's your calculated monthly benefit

According to the Social Security benefit formula in the previous section, this would produce an initial monthly benefit of $2,920 at full retirement age.

How much Social Security will I get if I make $50000 a year? ›

For example, the AARP calculator estimates that a person born on Jan. 1, 1960, who has averaged a $50,000 annual income would get a monthly benefit of $1,338 if they file for Social Security at 62, $1,911 at full retirement age (in this case, 67), or $2,370 at 70.

How much Social Security will I get if I make $100 000 a year? ›

Here's how much your Social Security benefits will be if you make anywhere from $30,000 to $100,000 per year. The average Social Security benefit is around $1,544. With inflation on the rise, retirees are expected to get as much as a 6% cost-of-living increase in their 2022 checks to shore up their budgets.

Where can I retire on $2000 a month? ›

While it might seem difficult to find a place to retire that is affordable and also checks off all your boxes in terms of climate and social life, there are several cities that have it all.
  • Norman, Oklahoma.
  • Baytown, Texas. ...
  • San Angelo, Texas. ...
  • Huntsville, Alabama. ...
  • Longview, Texas. ...
  • Roanoke, Virginia. ...
  • Temple, Texas. ...
  • Pittsburgh. ...
2 days ago

What do I do if my Social Security isn't enough? ›

You can apply on the Social Security Administration's website or by calling 1-800-325-0778. For more help, the National Council on Aging has a “benefits check-up” website where you can learn about more than 2,000 resources available to struggling seniors by ZIP code.

Can you survive on Social Security alone? ›

It's not recommended to rely solely on social security benefits in retirement, but it can be done. | Social Security was designed to supplement only pensions and retirement savings. But for many, that's no longer the case.

Is Social Security based on the last 5 years of work? ›

But reality is as described above - the highest earning 35 years of your lifetime earnings record are used to determine your average monthly career earnings (adjusted for inflation), and that 35-year lifetime average becomes the basis for your Social Security benefit.

Is Social Security going to run out? ›

Introduction. As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.

How much Social Security will I get if I make $40 000 a year? ›

Those who make $40,000 pay taxes on all of their income into the Social Security system. It takes more than three times that amount to max out your Social Security payroll taxes. The current tax rate is 6.2%, so you can expect to see $2,480 go directly from your paycheck toward Social Security.

Is it better to take Social Security at 62 or 67? ›

The short answer is yes. Retirees who begin collecting Social Security at 62 instead of at the full retirement age (67 for those born in 1960 or later) can expect their monthly benefits to be 30% lower. So, delaying claiming until 67 will result in a larger monthly check.

How many years does the average person work before they retire? ›

In 45 states, the average retirement age is between 62 and 65. The average retirement age is 64 for a work life of about 42 years, not anywhere close to 48 or 52 years. And less than 10% of Social Security recipients get the maximum benefit by claiming at 70, and those that do are the highest-income individuals.

Why is 65 the retirement age? ›

The original Social Security Act of 1935 set the minimum age for receiving full retirement benefits at 65. Congress cited improvements in the health of older people and increases in average life expectancy as primary reasons for increasing the normal retirement age.


1. Why millions of older Americans are retiring early in the wake of the pandemic
(PBS NewsHour)
2. The average retirement age by State and how much to save to hit that retirement goal.
(Jazz Wealth Managers)
3. The ages at which people really retire around the world | Retirement Planning 2019
(Check Facts 360)
4. How Much Does the Average Single American Need for Retirement?
(Prana Wealth)
5. Here's how much you should have in retirement at every age
(CNBC Television)
6. Is Retirement Dead? Most Americans Have No Retirement Savings | Adam Taggart

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