The average retirement age in the USA has steadily increased over the years.
In 1991, it was age fifty seven. Ohhhh…the good ol’ days!
As time has passed, the retirement age at which people have actually retired has gradually gotten older.
This is partly because people are choosing to retire later on in life out of preference and sometimes out of necessity.
Because of the financial crisis and the downturn of the economy, many people have been choosing to delay their retirement so they can remain financially stable.
I witnessed this first hand with with several clients who just didn’t feel as comfortable after what happened in 2008.
The popular average age for most Americans in recent years retiring has been 65.
In 2011, that jumped to 66. According to US News, that age has jumped again to 67 in 2012.
Americans expect to retire at an average age of 67, up from 66 in 2011, according to a recent Gallup poll of 1,016 adults. -US News
Lesser and lesser Americans are able to say that they have enough money to live comfortably because their average retirement savings has dropped. Therefore, many are choosing to delay retirement so that they will continue to be able to support their families and themselves.
Social Security and The Age You Retire
The retirement age is the age at which an individual is eligible for full social security benefits. It is possible for any individual to begin receiving benefits at the age of 62, or as late as age 70. The full retirement age depends on the year you were born in. At the moment, the full retirement age in the United States is sixty seven years old.
However, it is possible to retire at any time between the ages of sixty two and the full retirement age. If you retire earlier than the retirement age, expect to receive reduced benefits depending on the age you are retiring at. The benefits are reduced a percentage per month before you retire.
Reduced Benefits if Retiring Early
At age sixty two, the benefits are reduced by thirty percent. If you wait until the full retirement age to receive benefits, then you will receive the full benefits, and you can also be eligible for a delayed retirement credit.
The Social Security age at which you can receive your full benefits varies by year.
If you are born after 1937, then your retirement age will be older than sixty five.
If you are born after 1937, then it is possible to begin receiving your benefits at age sixty two, but you will be receiving less benefits than people who are at full retirement age now.
At the age of sixty three, your benefits will be reduced by twenty five percent. At the age of sixty four, that number will be twenty percent. And finally, at age sixty six, the reduction will be six percent. As you can see your Social Security age depends on the year you were born. You will still receive benefits if you to choose to slightly earlier, but expect a cut in those benefits.
The Average Retirement Age Should Increase
The average retirement age in the USA is expected to increase as more young people live longer due to advances in medicine and also a lack of savings. According to the US News Report, those that are currently 40 years or older are already planning to retire at the age of 68.
In addition, the future Social Security and Medicare still remains unclear. Nonetheless, many are choosing to retire later for financial purposes, and that number has risen after the economical slump. But given the recovery from past economic crises, there is hope. Or is there?
How confident do you feel about your retirement age goal?