How Many People Actually Retire at 65? The Reality Might Shock You

For decades, 65 has been considered the traditional retirement age in the United States. But today, that idea is changing.

While some still retire around 65, or even earlier, others are working well into their 60s and beyond. Shifts in health, finances, and the economy are reshaping how Americans think about retirement. So is 65 the norm or a number from the past?

Are Americans Really Retiring at 65?

For a long time, age 65 has been seen as the usual time to retire in the United States. It marks when people are eligibile for Medicare, and for many, it has long been the benchmark for transitioning out of the workforce. In reality, however, many people retire before 65.

Data from the Center for Retirement Research at Boston College shows that the average retirement age is 64.6 for men and 62.6 for women.

“Look at men; probably, really only about 40% of people, about half of people make it to age 65 today. So about half people retire before that, half people after that,” said Geoffrey Sanzenbacher, Professor of the Practice at Boston College, in an Investopedia interview in August. “For women, those numbers are just a little bit lower. [For] 2024, we’re talking about 45% of women make it to 65, [and] probably about 35% make it to 67.”

Early retirement isn’t always a choice though. Many people leave the workforce sooner than expected due to health problems or job loss. A spouse’s retirement can also influence an individual’s retirement timeline.

“I think people kind of underestimate how much their spouse’s retiring matters. A lot of people, once their spouse retires, they’ll retire, too,” said Sanzenbacher.

At the same time, retirement is shifting in the opposite direction for some, as a subset of older adults are continuing to work beyond age 65.

Why Americans Are Working Longer

While many Americans are retiring before age 65, there are an increasing number of people who continue to work well into their later years.

According to the Center For Retirement Research data, the labor force participation rate for men aged 55 or older has increased since the early 1990s, driving up the average retirement age for men.For women, the average retirement age has also increased since the early 1990s.

Several economic, social, and personal factors have contributed to this shift in retirement trends, reshaping how and when Americans choose to leave the workforce.

A Changing Retirement Landscape

Social Security reforms, like raising the full retirement age, removing the earnings test, and increasing delayed retirement credits, have made it financially smarter to work longer.

There’s also been a significant shift from defined-benefit pensions to 401(k)s that have eliminated incentives to retire at a fixed age. This change has also increased an individual’s financial risk, pushing many to stay employed longer to build up savings.

Education and Work Availability

As education levels have risen, older workers are more likely to have higher-skilled, less physically demanding jobs that support longer careers. The shift toward a service- and knowledge-based economy has made work more accessible and sustainable for older adults, especially those with college degrees.

Limited Health Coverage

With fewer employers offering retiree health insurance and healthcare costs rising across the board, many workers stay employed to maintain coverage. This creates a strong incentive to work at least until Medicare eligibility at age 65, especially for those without other affordable insurance options.

Improved Health and Longevity

Even though health issues are often cited as a top reason people leave the workforce early, people are living longer and staying healthier as they age, making it more physically and mentally possible to continue working.

Will the Retirement Age Continue to Rise?

Given current economic and demographic trends, it’s likely that Americans will continue retiring later. For those who retire early, the challenge is twofold: there’s less time to save and those savings need to last longer.

Meanwhile, younger generations may face even greater financial hurdles than baby boomers, like student debt and rising housing costs. As a result, many millennials and Generation Z workers may find themselves working well into their late 60s or beyond.

However, the type of work you’re able to do has a big impact on how long you can remain in the workforce. Physically demanding jobs may make it harder to continue working into older age while less strenuous or more flexible roles can support longer careers. For those approaching retirement age and unsure about their financial readiness, it may be worth considering a job change that supports long-term employment.

“If you don’t think you can meet your plan, thinking about switching [jobs] is probably something that’s smart to do—maybe just something with a little less responsibility, but that you can do longer and keep yourself from having to lean on those retirement savings,” Sanzenbacher said.

This growing trend highlights a shift in how people view retirement, not as a definitive endpoint, but as a stage that can include continued work and income.

The Bottom Line

Retirement in America is no longer defined by a single age. While 65 was once seen as the standard, many retire earlier than expected while others stay in the workforce well beyond that age.

As these trends continue, retirement is becoming a highly personal decision that is less about reaching a specific age and more about achieving financial stability, maintaining health, and meeting individual goals.