There’s often a big gap in expectations versus reality when it comes to retirement age.
Almost half, 46%, of retirees in 2023 said they stopped working earlier than planned, according to the Employee Benefit Research Institute.Retiring early can have negative financial effects, like drawing down savings and claiming Social Security sooner than optimum., there's a big gap in expectations versus reality. Americans generally retire earlier than planned — often due to factors beyond their control, such as poor health or job loss, research shows..
Such people continue to get a regular paycheck, so don't have to live off their savings. Meanwhile, they have extra time to save and for their assets to grow. Further, they can likely delay claiming Social Security benefits, guaranteeing a higher monthly payout for the rest of their lives.Those who target a retirement age past 61 end up making it about half as far as expected, he found. For example, someone who aims to retire at 69 would actually retire around age 65.
In 2023, 35% of people who said they retired earlier than planned did so because of a hardship like a health problem or disability, according to EBRI. Another 31% did so due to changes at their company.Of course, a large share — 35% — also said they could afford to retire early, EBRI found. And almost half of retirees said they were able to stop working at about the time they planned.
Just 10% who suffered an involuntary job separation in their early 50s ever earn as much per week after their separation as before it, the Urban Institute paper said. In other words, 90% earn less —"often substantially less," Johnson said.Johnson's research shows that in the aftermath of the Great Recession , workers 50 to 61 years old who lost a job were 20% less likely to be reemployed than workers in their 20s and early 30s.
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