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Dreaming of early retirement? Financial planners say most should wait

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The divide reflects two very different ways of looking at retirement

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Updated:

key insights:

  • Many workers say their ideal retirement age is in their late 50s or early 60s, driven by concerns about health, burnout, and quality of life.
  • Financial planners often recommend retiring later — frequently between ages 65 and 70 — to maximize savings and Social Security benefits.
  • The growing gap highlights a broader retirement challenge: Americans want to stop working earlier than many can realistically afford.

For many Americans, the ideal retirement means leaving the workforce while they are still healthy enough to travel, spend time with family, and enjoy life. But financial planners say that goal is increasingly at odds with economic reality.

Recent surveys show workers generally envision retiring in their late 50s or early 60s. In one survey, respondents said 58 was the average ideal retirement age. Financial advisers, however, often recommend delaying retirement until at least 65 — and in many cases 70 — especially for workers who have not built substantial retirement savings.

The divide reflects two very different ways of looking at retirement.

Escape from burnout

Workers often focus on lifestyle and personal well-being. After years of inflation, job stress, and economic uncertainty, many people see early retirement as an escape from burnout. Others worry about declining health and want to enjoy retirement while they are still physically active.

Financial planners tend to focus on longevity and income security. Americans are living longer, healthcare costs continue to rise, and many households have saved far less than experts recommend. Advisers say retiring too early can dramatically increase the risk of running out of money later in life.

One of the biggest mistakes people make is underestimating how long retirement may last, many planners warn. Someone retiring at 60 could need their savings to last 30 years or more.

A major reason planners encourage later retirement is Social Security. Benefits increase for every year a worker delays claiming after full retirement age, up to age 70. Delaying benefits can significantly raise monthly income for life, providing greater protection against inflation and market downturns.

Events can upset plans

But many Americans may not have the luxury of choosing when to retire.

Health problems, layoffs, caregiving responsibilities, and age discrimination often force workers into retirement earlier than planned. Surveys consistently show that actual retirement ages tend to cluster around 62 to 64 — earlier than many financial advisers recommend but later than many workers ideally prefer.

The disconnect also reflects broader concerns about retirement preparedness. Studies have found that a large percentage of Americans are behind on retirement savings goals, with many households lacking enough assets to maintain their current lifestyle after leaving the workforce.

As a result, planners increasingly advocate for flexible approaches instead of a single “ideal” retirement age. Some recommend phased retirement, part-time work, or consulting arrangements that allow workers to reduce hours while continuing to earn income. Others suggest separating the decision to stop working from the decision to claim Social Security benefits.

For many Americans, the debate over retirement age is becoming less about preference and more about balancing financial necessity with quality of life.