Retiring at 65 is the average expectation for most when it comes to planning out their careers. However, a recent report from a distinguished economist has revealed that the average retirement age for Americans is on a steady incline.
This now begs the question: at what age will the retirement age stop rising?
Is retiring at 65 eventually going to be a thing of the past?
In a research brief from April, economist Alicia Munnell reports that “over the past three decades, the average retirement age has risen by about three years.” In 2024, for men, the typical retirement age was 64, and for women it was 62.
This incline, whilst slow, is still quite notable, particularly when compared to one or two decades ago. In 1994, for instance, the average man retired at 61, and the average woman at 59. But what is causing people to retire later as time progresses?
In short, Americans are living longer, therefore they work longer. Americans today live longer and live healthier lifestyles. The jobs they works are less physically demanding as well. Another factor contributing to this incline in retirement age is the workplace pensions incentivize retiring later.
The Social Security program has also increased its full retirement age to 67 and as such, those who claim prior to reaching this age will see a reduction in their benefits until they reach full retirement age.
“There were a lot of forces that encouraged people to work longer,” said Munnell, senior adviser at the Center for Retirement Research at Boston College.
Is late retirement for the better or for the worse?
Many retirement researchers are divided on the matter of the steadily growing retirement age. According to Andrew Biggs, a senior fellow at the American Enterprise Institute, “If Americans were working longer to stave off poverty, then a rising retirement age would be a bad thing.”
“They’re getting higher Social Security benefits, and the benefits they’re getting from private retirement plans have increased,” Biggs added. “So, they don’t need to work to stay out of poverty.”
Another oft debated topic is the issue of whether or not most retirees have saved enough or qualify for benefits sufficient enough to sustain them throughout their retirement. In this regard, an AARP survey from 2024 revealed that “one-fifth of over-50 adults have no retirement savings, and that many worry they won’t have enough funds to last through retirement.”
“So, for a meaningful share of workers, postponing retirement is likely a necessity to keep their main income stream going,” said Nicola Bianchi, assistant professor of strategy at Northwestern University’s Kellogg School of Management.
Retiring at 62 or retiring at 65?
The ages of 62 and 65 are often the most notable ages when contemplating retirement. This is because 62 is the age at which most Americans can begin claiming from Social Security, whilst 65 is the age at which Medicare comes into effect.
As a result, “It’s no surprise that the average retirement age for men and women falls between those years,” says Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute.
“I think those two years are going to be key,” Copeland notes. “Unless those are moved, I don’t see that the average retirement age is going to move much.”
Whilst 62 is still the most common age at which Americans claim Social Security, the number of Americans who claim at this age has shown a significant decline in recent decades.
Additionally, Munnell predicts a decline in the average retirement age for 2025 and the reason for this is the cost slashing initiatives that have been enacted by the Trump Administration in the federal space. This caused a 15% uptick in claims in March 2025 when compared to March 2024.
Many Americans are fearing for the longevity of the retirement trust fund and the staff cuts, rule changes, and website crashes are not aiding the situation.
“They’re all racing in to claim benefits, which means they’re likely to stop working earlier than they had planned,” Munnell stated.