Many factors enter into Americans' retirement age decisions, not the least of which is probably whether they enjoy their jobs, but also whether they can afford to stop working. Each year Gallup chronicles retirement age trends by asking non-retired Americans the age they expect to retire at and asking retired Americans the age at which they retired. For the first time this year, Gallup also asked non-retired adults the age at which they would retire if they were rich enough to do so.
The results show some fascinating differences, with non-retired adults expecting to retire several years later than the actual retirement age of current retirees. Non-retired adults also say they would retire at a much earlier age if they could afford to financially.
Retirement Expectations
Gallup's annual survey on the economy and personal finance*, conducted April 4-7, shows that the average age at which non-retired adults plan to retire is 64. According to the full distribution of responses, 15% of non-retired Americans plan to retire before their 60th birthday, 22% plan to retire between the ages of 60 and 64, 25% plan to retire at age 65, and 31% plan to retire when they are older than that.
In the 10 years since Gallup first asked this question, the mean age at which people plan to retire has increased slightly. In 1995, the average planned retirement age was 60. This increased to age 63 in polls conducted in 2002 and 2003, and then to age 64 in 2004 and 2005.
While the mean age at which people plan to retire has edged up slightly, the percentage of non-retired adults who say they plan to retire after age 65 is now the highest it has ever been. This figure has increased from 12% in 1995 to 31% in the latest survey.
There are some slight, but real, differences in retirement age predictions according to the current age of respondents, with younger adults expecting to retire earlier than those 50 and older. On average, those aged 18 to 29 say they plan to retire by age 62, while those aged 30 to 49 plan to retire at age 65 and those aged 50 and older at age 66.
Retirement expectations also vary by household income levels, with the highest-income households planning to retire a few years earlier than those in lowest-income households. Adults living in households earning less than $30,000 per year say they expect to retire at age 66, on average. Those earning between $30,000 and $75,000 per year plan to retire at age 64, and those earning more than $75,000 per year plan to retire at age 63.
But …What If You Were Rich?
We've all heard the stories of jackpot lottery winners who claim they will keep their day jobs pumping gas, but would most Americans really continue to work if money were no object?
As opposed to the average age of 64 for retirement predictions under normal circumstances, non-retired adults say they would retire, on average, at age 51 if they were "rich enough so that money were no object." Eleven percent would retire before age 35, 15% between the ages of 35 and 44, and 26% between the ages of 45 to 54. But 28% would hold on until somewhere between 55 to 64, and 14% until they are 65 or older.
Younger respondents are much more likely than older respondents to say they would retire at a younger age if they were wealthy. On average, 18- to 29-year-olds would retire at age 42, while 30- to 49-year-olds would retire at age 50, and those aged 50 and older would retire at age 59.
However, the poll finds no significant differences in the answers of people of different income levels when asked, hypothetically, at what age they would retire if income were not a factor. Those earning less than $30,000 per year would retire, on average, at age 51; those earning between $30,000 and $75,000 would retire at age 50; and those earning $75,000 per year or more would also retire at age 50.
And …When Do Retirees Leave the Workforce?
Current retirees tell Gallup that they left the workforce, on average, at age 60 -- four years earlier than non-retired adults expect to retire. This includes a third who retired before age 60, 35% who retired between the ages of 60 and 64, 17% who retired at age 65, and 12% who retired after that.
This question has been asked by Gallup since 1991, and since that time, the mean age at which people retired has shown only modest changes. In 1991, the average age that people retired was 57. Now, that age is 60.
*Results are based on telephone interviews with 1,010 national adults, aged 18 and older, conducted April 4-7, 2005. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±3 percentage points. For results based on the sample of 767 non-retired adults, the maximum margin of sampling error is ±4 percentage points. For results based on the sample of 243 retired adults, the maximum margin of sampling error is ±7 percentage points.
In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.
