When Will You Retire? It May Be Sooner Than You Think

As my parents grew older, my sister and I talked a lot about where my mother would go when my father died. My sister’s house? My house? Assisted living?

We only talked about my mother because my father was leaving first. He was not only old, but not nearly as healthy. He was legally blind; Mom had to drive him around and take care of him. It wasn’t a problem; he was healthy, happy and in good spirits.

Then one Monday morning, Mom fell asleep in her favorite chair, and she didn’t wake up.

We had never even considered that scenario as a remote possibility. And that’s the thing about life: Just when you think you’ve got it, you find out you don’t.

As they say, people plan and God laughs.

I have talked to many people about their retirement plans over the years. Many tell me that they will continue to work until they hit 65 or 67. Many have a spreadsheet map that lays it all out. They think they will cash out their Social Security benefits and build a large portfolio before they retire.

And it usually does. Sometimes, not so much.

The gap between when we expect to retire and when we actually do is one of the constants in financial research. If you’re building your entire financial future with the assumption that you’ll work into your late 60s, you need a backup plan.

The numbers don’t lie, and they tell a story you need to hear.

The gap between expectation and reality

There is no official retirement age that is followed by the government, but major surveys all point to the same fact. According to a Gallup survey on retirement, the average age at which Americans retire is 61 or 62. Meanwhile, non-retirees expect to continue working until they are 66.

That’s a big disconnect.

The 2025 Retirement Confidence Study summarized by Kiplinger from the Employee Benefit Research Institute (EBRI) paints a similar picture. Workers reported an expected retirement age of 65. But if you ask actual retirees, the average age they left the workforce was 62.

Even more telling is what happens at the extremes. In the same EBRI survey, 30% of workers said they expect to retire at age 70 or later or simply stop working. Yet only 9% of actual retirees have done so.

On the other hand, only 12% of workers plan to retire before age 60, but 27% of retired workers say that’s exactly what happened to them.

Why do we leave the workforce early

You may think that early retirement sounds like a dream. For others, of course. EBRI data shows that among those who retired early, 44% did so because they could afford it. That is the right situation.

But for some, early retirement was not an option. It was forced upon them.

• Health problems: According to the survey, 31% of early retirees identified a health problem or disability as the reason they stopped working. You can’t plan for a sudden illness, but it happens all the time.
• Company changes: Another 31% cited changes in their employer. That means layoffs, downsizing or a business closing its doors. If you lose your job in your early 60s, finding another that pays the same isn’t easy. Many older workers eventually give up looking for work and simply call themselves retired.

This breaks down the popular strategy of planning to work a few extra years to make up for the lack of savings. You can’t just assume that your employer will stick around or that your body will cooperate.

The myth of working in retirement

Here is another thought that gets people into trouble. A whopping 75% of workers in the EBRI survey said they plan to work for a living when they retire. They think they’ll get a fun part-time job or consult on the side to bring in some extra cash.

Is it true? Only 29% of retirees do.

If your financial plan depends on getting a paycheck after you officially retire, you’re taking a big gamble. If health issues arise or those part-time days don’t happen, you’ll be left with a serious hole in your budget.

A way to protect yourself

The takeaway here is not to panic. It’s being real. You need to stress-check your financial plan to get out early.

1. Save more now: Don’t think you have another decade to hold onto. Put as much money into your investment accounts as you can eat while still earning a steady paycheck.

2. Understand Social Security: You need to know what happens if you are forced to apply early. Taking benefits at age 62 reduces your monthly paycheck compared to waiting until your full retirement age. (You can read more about the impact of being surprised early in “4 Dave Ramsey Rules for Claiming Social Security at 62.”)

3. Address the health care gap: If you retire at age 62, you still have three years before Medicare starts at age 65. Finding private health insurance to cover that gap can be brutally expensive, although there are ways to cover health care costs if you retire early. Include those costs in your estimate.

4. Build flexibility: The people who survive unexpected early retirement are the ones who didn’t put all their hopes on the one day they intended. Keep your bills low and your options open.