Average Age of Retirement Rising

[aim-high]

The average retirement age continues to rise.

The average age at which U.S. retirees report retiring is 62, the highest Gallup has found since first asking Americans this question in 1991. This age has increased in recent years, while the average age at which non-retired Americans expect to retire, 66, has largely stayed the same. However, this age too has slowly increased from 63 in 2002.

Average U.S. Retirement Age Rises to 62

Anyone want to help the average drop in 2014?

It's interesting that the younger generations see themselves as wanting to retire earlier. It will take a lot of fiscal discipline given how sophisticated marketers are these days at making you itch and offering to scratch.

 

[LOL!]

The rise is a short-term effect because some folks who planned to retire in 2008-2010 didn't until their portfolios recovered. I think all is well now and the number (avg retirement age) will promptly drop.

I think this year may turn out to be a record in terms of number of people retiring what with the holdbacks, the market recovery, and the ACA. There are starting to be media reports to that effect.

 

[Big_Hitter]

^ this and the fact that most early retirements are health related - people are living healthier so they are retiring later

 

[Greencheese]

It'll be interesting to see the effects of 401ks and IRAs have on the retirement age in the future as the number of pensions continues to decline into nothing. I feel like there are more tools to get to early retirement than ever before but there's also more personal responsibility than ever before.

 

[martyb]

I retired last Friday at 56 so that should help lower the average a little......

 

[ERD50]

For the reasons given by previous posters, plus...

the average is skewed by all those bloggers claiming to be retired in their 30's, while their spouses work (because they want to of course), and they earn income from their blogging, and other activities that most of would call 'work'.

-ERD50

 

[Aus_E_Expat]

In Australia they are raising the age at which social security are available to 70 years and they are talking about raising the age at which people can access their private pensions to 65 or 70.

The Government wants people to work longer.

I am certainly not planning on hanging around that long - fortunately my retirement planning does not include any social security.

 

[ejman]

^ this and the fact that most early retirements are health related - people are living healthier so they are retiring later

Maybe so for the population at large. I doubt that most ER's that regularly post here did so because of health reasons. Well maybe to escape the stress from work...

 

[Cat-tirement]

The average retirement age continues to rise.

Average U.S. Retirement Age Rises to 62

Anyone want to help the average drop in 2014?

I volunteer to suffer for the cause and retire 7 years younger than that come September.

 

[aim-high]

For the reasons given by previous posters, plus...

the average is skewed by all those bloggers claiming to be retired in their 30's, while their spouses work (because they want to of course), and they earn income from their blogging, and other activities that most of would call 'work'.

-ERD50

Oh no. Here we go for another 50 posts on the definition of retired.

 

[skyvue]

This is surprising and some what perplexing to me. The stock market has been on such a roll since 2009 that I would think more people would be retiring earlier! I guess most people just lack the discipline to save and invest enough to make it happen. Saving enough to retire by 55 doesn't even seem that hard or something that would require a lot of effort. I am on pace for about 51 and I kick myself constantly about my mistakes early in life that have me working this long.

 

[footenote]

skyvue - Unfortunately most Americans don't own stock (or even mutual funds):

"Just 15 percent of [American] families directly owned stocks in 2010, according to a 2012 report from The Federal Reserve. ... In fact, the majority of Americans have no money in the stock market at all, including retirement accounts. Some 53 percent of Americans avoid the market completely, according to a Pew Research survey last year.

"The richer and more educated people are, the more likely they are to invest in the stock market. Some 80 percent of households earning $75,000 a year or more are in stocks, including retirement accounts, Pew found, while just 15 percent of those earning less than $30,000 have invested."

Stocks soar, and most Americans just don't care - CBS News

 

[Andre1969]

Interesting, how much these polls tend to vary. I've heard that the actual retirement age has hovered around 62 for awhile now, and no matter how long people think they're going to work, something still happens, such as a layoff, caring for a loved one, failing health, etc. People might be living longer, but I was under the impression that they're still phasing out of the workforce about the same age they've always done.

As for younger generations wanting to retire early, heck, they're the ones I've been hearing mention "Oh, I'll just work longer if I can't afford to retire!"

 

[skyvue]

skyvue - Unfortunately most Americans don't own stock (or even mutual funds):

"Just 15 percent of [American] families directly owned stocks in 2010, according to a 2012 report from The Federal Reserve. ... In fact, the majority of Americans have no money in the stock market at all, including retirement accounts. Some 53 percent of Americans avoid the market completely, according to a Pew Research survey last year.

"The richer and more educated people are, the more likely they are to invest in the stock market. Some 80 percent of households earning $75,000 a year or more are in stocks, including retirement accounts, Pew found, while just 15 percent of those earning less than $30,000 have invested."

Stocks soar, and most Americans just don't care - CBS News

I just saw a program on the news this weekend that said 53% of American are invested in the stock market. That would include mutual funds in 401k's, etc... Ironically, there are some Americans so clueless that they do not even know they have money in the market!

P.S. I would be one of those Americans who do not own any individual stocks, but I have almost a million in the "stock market" via mutual funds. I think the semantics are key here.

 

[2B]

Unfortunately, my retirement will be over the average. I discovered I was FI in 2005 when I started lurking here. I became a congenital OMY-er. Much of it was initially due to my DW's parents health/care issues where, if retired, I would have been much more involved in whether I wanted to be or not. The last 3 years have been more staying out of loyalty to my boss because we've been pretty busy at the company and I make a pile of money for doing a pretty easy/low stress job.

I'm not one of the posters here that have 8 figure portfolios but I've got a decent stash. A big part of my situation is based on a nice but not extravagant lifestyle. It's now obvious that I'm just working for my grandchildren's inheritance. Every variation of calculator I use has my retirement spending above my current salary which I don't come near to spending now. If I traveled more maybe I could spend it all but DW says we're doing all the traveling she wants to do now.

 

[Koolau]

Unfortunately, my retirement will be over the average. I discovered I was FI in 2005 when I started lurking here. I became a congenital OMY-er. Much of it was initially due to my DW's parents health/care issues where, if retired, I would have been much more involved in whether I wanted to be or not. The last 3 years have been more staying out of loyalty to my boss because we've been pretty busy at the company and I make a pile of money for doing a pretty easy/low stress job.

I'm not one of the posters here that have 8 figure portfolios but I've got a decent stash. A big part of my situation is based on a nice but not extravagant lifestyle. It's now obvious that I'm just working for my grandchildren's inheritance. Every variation of calculator I use has my retirement spending above my current salary which I don't come near to spending now. If I traveled more maybe I could spend it all but DW says we're doing all the traveling she wants to do now.

While I suppose I helped lower the average slightly, I've always been just a bit sheepish about claiming "early" retirement at 58. Still, I WAS FI at 51, so I'll assuage my conscience with that fact. I continued to w*rk because I suddenly found my self in a situation I really enjoyed - something I had w*rked toward my whole c@reer. The day my w*rk situation changed negatively, I began the retirement process (notice, paperwork, etc.) So I think there are many reasons the average retirement age is rising. To my own surprise at the time, enjoying what you do is one possible reason - though I suspect that is a minority reason. YMMV

 

[NW-Bound]

Average U.S. Retirement Age Rises to 62

Anyone want to help the average drop in 2014?

I did it at 55 (working part-time since 47). My wife at 50. Was that helpful enough?

Or do you want me to fund my children so they also go straight into ER before 30? They are working now.

 

[2B]

Or do you want me to fund my children so they also go straight into ER before 30? They are working now.

If I had been given my current assets at age 30, I wouldn't have had a clue what to do with it. I probably would have been scammed and lived a bit too large until it was gone. There is a definite value to having the patience and developing the skill set to save a reasonable nest egg.

Now if someone (you, perhaps? ) would suddenly make me a deca-millionaire, I think I'd be able to live my life and manage the assets without screwing everything up.

 

[Big_Hitter]

Maybe so for the population at large. I doubt that most ER's that regularly post here did so because of health reasons. Well maybe to escape the stress from work...

definitely a fact for the population at large - most early retirements are health related

 

[NW-Bound]

...Now if someone (you, perhaps? ) would suddenly make me a deca-millionaire, I think I'd be able to live my life and manage the assets without screwing everything up.

Me, a decamillionaire? I wish. But same as you, I think I can manage even a bigger stash without screwing it up. So far, nobody gives me a chance, and I do not think I can get there by myself. But I am not starvin'...

Anyway, it is true that I wish my children will get to be well-to-do before we croak and leave them with money, so that they know how not to blow it.

PS. By the way, I do not have enough to fund my children's ER and ours too. Not at the lifestyle that they would like anyway!

 

[NW-Bound]

Maybe so for the population at large. I doubt that most ER's that regularly post here did so because of health reasons. Well maybe to escape the stress from work...

My wife's work was stressful, but mine was not that bad. It was because as a consultant or contractor, I could walk anytime and that gave me a different mentality, and got me a different treatment too.

When I stopped working, it was not for health reasons, but shortly after full retirement I was glad that I could pursue treatments for a sudden life-threatening illness without having a job hanging on my neck (I am OK now).

 

[Alan]

Average age of retiring

This is one average that I am happy to be well below

 

[footenote]

I've heard that the actual retirement age has hovered around 62 for awhile now, and no matter how long people think they're going to work, something still happens, such as a layoff, caring for a loved one, failing health, etc.

Agree - it's sad that most people who are not saving and planning will "cliff retire" due to situations you cite. Then they have to cobble together whatever combination of unemployment, savings-raiding (if they have any), working at WalMart, or disability to "keep body and soul together" until they can (stupidly) collect SS at the earliest possible age.

Also, agree with the observation that whether we're talking actually stock in a brokerage account vs a mutual fund can cloud the statistics. (I, too, own very few individual holdings.)

 

[W2R]

This is one average that I am happy to be well below

Wish I could have been! I retired in 2009 at age 61.5. Looks like the average that year was 60. Oh well, I tried.

Also, if you had asked me in my early 50's when I would retire, I would have said "90 if I'm lucky! I'll never get there!" It didn't occur to me on a visceral level that I really would have a paid off house some day, pension, taxes as low as they presently are for me, SS in the wings, and so on.

 

[scrabbler1]

As far as keeping that average low, I did my share (ERing at 45)!

I don't own any individual stocks but I have about half a million dollars in stock mutual funds split between my IRA and taxable accounts.

Does anyone here think the ACA will put downward pressure on the average age of retirement because people don't have to work until medicare age (or at least 63.5 like my dad did, using COBRA to bridge him to 65 and medicare)? I know this has been discussed in this forum before.