Retirement is a major life transition that allows people to leave the workforce and enjoy their later years. A common question that arises is how long people tend to live after retiring. The average retirement age and life expectancy both factor into determining the average number of years spent in retirement.
Average Retirement Age
The average retirement age in the United States has been rising over time. In the early 1990s, the average retirement age for men was 62 and for women it was 60. By 2014, it had risen to 64 for men and 62 for women. As of 2019, the average retirement age in the U.S. was about 66 years old.
There are several reasons the average retirement age has been steadily increasing:
- People are living longer and staying healthier into old age, allowing them to extend their working years.
- Changes to Social Security have motivated some people to delay claiming benefits.
- Pensions have become less common, requiring people to rely more on personal savings that take longer to accumulate.
- Financial market volatility has led some to stay employed longer to recover losses and save more.
- Increases in life expectancy mean savings need to last longer in retirement.
While the average retirement age has gone up, there is still significant variation among individuals. Some people retire in their 50s or younger due to health problems, generous pensions, or simply the desire and financial means to stop working early. Others may work into their 70s by choice or necessity.
Life Expectancy at Retirement Age
In addition to the average retirement age, life expectancy is a key factor in determining how many years of retirement people can expect. Life expectancy measures the average number of years a person at a given age is expected to live, based on mortality statistics.
Here are some statistics on life expectancy for the current average retirement ages in the U.S:
- At age 65: Approximately 84 years for women and 82 years for men.
- At age 66: Approximately 84 years for women and 81 years for men.
- At age 67: Approximately 83 years for women and 81 years for men.
Life expectancies have been improving over time, but gains have slowed in recent years. Ongoing increases in obesity and drug overdoses may also weigh on future longevity statistics.
Average Years Spent in Retirement
By combining the average retirement age with life expectancies, we can estimate the average number of years spent in retirement.
For example, with an average retirement age of 66 and a life expectancy of 84 years for women, the average retirement would last approximately 18 years. For men retiring at 66 with a life expectancy of 81 years, the average retirement would be around 15 years.
Here are some estimates for the average number of years spent in retirement based on current data:
| Gender | Average Retirement Age | Life Expectancy at Retirement | Average Years in Retirement |
|---|---|---|---|
| Women | 66 | 84 years | 18 years |
| Men | 66 | 81 years | 15 years |
These averages conceal wide variation based on factors like marital status, education, income, race, health behaviors, and genetics. For example, a college-educated man retiring at 65 in good health might expect around 20 more years of life. A less advantaged woman retiring at 62 with chronic conditions may have less than 10 years.
Trends That Could Impact Average Retirement Length
While we can calculate estimates for the average retirement length today, demographic and societal trends may cause the averages to change in the coming decades.
Rising Life Expectancy
As medical advances allow people to live longer, average retirement length should increase. However, there are questions around whether extending life span will translate into extending healthy or disability-free years. If longevity gains are accompanied by more chronic disease, the quality of additional retirement years may be poor.
Earlier or Later Retirement
If more people delay retirement due to financial necessity or the desire to keep working, the average retirement age could creep higher. That would decrease average retirement length assuming life expectancy remains stable. On the other hand, if more employers offer incentives for early retirement, such as through pension buyouts, average retirement age may decrease and retirement lengths extend.
Changes to Age-Related Benefits
The rules governing Social Security and Medicare eligibility could change in ways that influence retirement timing. For example, raising the age for collecting full Social Security benefits could motivate some to stay employed longer. Changes that expand access to Medicare before 65 could enable earlier retirement for some.
Evolving Lifestyle Expectations
The lifestyle that retirees expect to afford is a factor in determining how long their savings need to fund retirement. Expectations of extensive travel, expensive hobbies, second homes, and other indulgences can motivate people to work longer and retire later. More modest expectations may allow earlier retirement on less savings.
Health Behaviors
Behaviors around diet, exercise, smoking, and alcohol use play a significant role in longevity. Efforts to promote better health could allow people to enjoy longer retirements. But if obesity and substance abuse trends worsen, it could subtract years from average retirement lengths.
Planning for Your Retirement
While population averages provide useful guidelines, it’s important to consider your own situation when thinking about retirement planning. Factors like your current age and health status, whether you enjoy your job, your expected retirement expenses, and your savings balance should all weigh on the decision. Consulting with financial and legal professionals can help ensure you craft the optimal plan.
With thoughtful planning, you can make sure you have the resources to enjoy a comfortable retirement for as many years as you have ahead of you.