October 27th 2025.
Over the past 60 years, there has been little change in the average retirement age for Americans, despite an increase in wages and more accessible retirement plans. For men, the average age of retirement remains at 65, a number that has remained steady for six decades. However, for women, the average retirement age has risen from 53 to 63.
Despite these numbers, expectations about retirement have worsened. According to a report from The Motley Fool, 13% of workers do not believe they will ever retire, and the percentage of Americans who have retired in their 60s or later has decreased in the past 20 years. This highlights the importance of strategic retirement planning and utilizing retirement accounts and other tools to prepare for the future, no matter when retirement may come.
Research conducted by the Center for Retirement Research at Boston College found that the average retirement age for men is 65, while for women it is 63. However, for men, this number has only fluctuated slightly since 1962. On the other hand, the average retirement age for women has increased by 10 years since the 1960s. This trend is likely due to more women entering and staying in the workforce, as well as changes to retirement accounts and Social Security benefits that encourage later retirement.
Despite the common notion of retiring at 65, the reality is that only 32% of Americans aged 60 to 64 were actually retired between 2016 and 2022, according to Gallup. This percentage decreases to 11% for those aged 55 to 59, and drops below 10% for younger age groups. Even among those aged 65 to 69, only 70% are retired, and this number increases to 83% for those 70 to 74 and 88% for those 75 and older. In fact, the percentage of Americans retired across all age groups has decreased since 2002, suggesting that more people are working longer due to financial strain.
According to a survey from the Transamerica Center for Retirement Studies, 34% of workers plan to retire after 65, while 13% do not plan to retire at all. Only 23% believe they will retire at 65, and 29% are optimistic that they will retire before that age. However, as workers age, their retirement expectations become more pessimistic. While 42% of Gen Z believes they will retire before 65, only 22% think they will retire at that age, and 24% believe they will retire later. Similarly, among millennials, 36% plan to retire before 65, 25% at 65, and 38% after 65.
As for older generations, the majority of Gen X (37%) and baby boomers (64%) do not expect to retire before 65, and 15% of both groups believe they will never retire. These expectations reveal a disconnect between hopes and reality when it comes to retirement.
There are several factors that may contribute to this gap. Younger workers may underestimate the rising costs of retirement, such as housing, healthcare, and overall cost of living. They may also overestimate their ability to save for retirement, especially if they encounter unexpected life events that affect their finances. On the other hand, older workers may be incentivized to delay retirement in order to reach full retirement age and maximize their Social Security benefits, as well as to postpone enrolling in Medicare.
Ultimately, it is important for individuals to have a clear retirement strategy in place, regardless of their expected retirement age. The average retirement age may remain steady, but expectations are shifting, particularly among older Americans. By planning ahead and utilizing retirement accounts and other tools, individuals can retire on their own terms and make the most of their golden years. This article was produced by The Motley Fool and reviewed and distributed by Stacker.
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