The retirement age hasn’t changed much in 60 years. Americans’ expectations have

The retirement age hasn’t changed much in 60 years. Americans’ expectations have

Despite higher wages and more accessible retirement plans, the average retirement age has hardly moved over the past 60 years. For men, the average age of retirement is 65, essentially unchanged over six decades. For women, the average retirement age has increased from 53 to 63.

Expectations about retirement are worsening, however. Thirteen percent of workers don’t think they’ll ever retire, and the share of Americans in their 60s or later who have retired has decreased over the past two decades, The Motley Fool reports.

These shifting patterns highlight the need for strategic retirement planning and the use of retirement accounts and other tools to help individuals stay on track for retirement, whenever that day may come.

Key findings

• The average retirement age is 65 for men and 63 for women.
• The average retirement age has changed little since 1962 for men, but increased by ten years for women.
• 47% of workers plan to retire after 65, or not at all.

How the average retirement age has changed since the 1960s

The average retirement age for men is 65 and 63 for women, according to the Center for Retirement Research at Boston College.

For men, the average retirement age has wavered only by a few years since 1962.

For women, however, the average retirement age has increased by 10 years since the 1960s. The steady climb is likely due to more women entering and permanently staying in the workforce and changes to retirement accounts and Social Security benefits to incentivize later retirement.

Percent of Americans retired by age

While many dream of retiring before 65, few actually do. Just 32% of Americans aged 60 to 64 were retired between 2016 and 2022, according to Gallup. That drops to 11% for those aged 55 to 59, and below 10% for younger Americans.

Retiring at 65 has long been the benchmark, yet just 70% of Americans between 65 and 69 are retired. That share grows to 83% of those 70 to 74 and 88% of those 75 and older.

The percentage of Americans retired across all groups has decreased since 2002, Gallup data shows. The decline signals more people working longer, likely due to financial strain.

Nearly half of Americans expect to retire after 65 or not at all

Thirty-four percent of workers plan to retire after 65 and another 13% have no plans to retire at all, according to a 2024 survey from the Transamerica Center for Retirement Studies. Twenty-three percent think they’ll retire at 65 and 29% are optimistic that they’ll retire before 65.

Retirement expectations grow more pessimistic with age. Among Gen Z, 42% believe they’ll retire before 65 and 22% think 65 will be the age they retire. Just 24% think they’ll retire later than that. Millennials are similarly hopeful. Thirty-six percent think they’ll retire before 65 and 25% believe they’ll retire at 65.

Older generations expect to retire later. Thirty-seven percent of Gen X don’t think they’ll retire before 65 and 15% don’t think they’ll ever retire. Baby boomers are even less optimistic — 64% see themselves retiring after 65, and like Gen X, 15% don’t think retirement is on the table at all.

These expectations reveal a widening gap between hopes and reality when it comes to retirement.

Why do early retirement expectations erode as workers age? Younger workers may underestimate retirement costs. Housing, healthcare, and the overall cost of living have continued to increase. Gen Z and millennials may also overestimate their ability to put savings into their retirement accounts, particularly if they run into unexpected life events, like prolonged unemployment, medical expenses, or other issues.

Additionally, older workers are often incentivized to put off retirement and keep working to reach full retirement age and get the most out of their Social Security benefits, and to delay enrolling in Medicare.

Retiring on your terms

The average retirement age over the last 60 years hasn’t moved much for men, but has risen for women. Fewer people are retiring in their 60s than two decades ago, and at least 10% of each generation now thinks they won’t ever retire.

Despite the average retirement age staying steady in the mid-60s, expectations are shifting, particularly for older Americans. For those planning beyond 65, a clear retirement strategy is critical to make the most of their years after work.

This story was produced by The Motley Fool and reviewed and distributed by Stacker.