More than half of retirees leave the workforce earlier than planned, often due to circumstances beyond their control, according to a new report from the Society of Actuaries Research Institute. The survey found that 59% of retirees stopped working before they expected, while only 6% retired later than planned.
The average American retires at age 62, though most workers plan to work until 65 or later. Health setbacks are the leading cause of early retirement overall, but the reasons vary sharply by income.
For retirees earning under $35,000 a year, health changes and job loss are the top drivers. For those earning over $75,000, early retirement is more often voluntary, driven by job dissatisfaction or reaching savings goals ahead of schedule.
“Higher-income people are more likely to do it because it’s their choice,” said Craig Copeland of the Employee Benefit Research Institute. “Lower-income people are more likely to have their health or a change at the company being the cause.”
Despite retiring early, most retirees report financial stability. Only 19% in the Society of Actuaries survey said they were worse off than expected. The typical retirement account balance for households aged 65-74 is about $200,000, far below the $1 million many advisors recommend.