Is It Normal To Retire at 66? How the US Compares to 10 Other Countries

The full retirement age in the U.S. is 66, or 67, depending on the year you were born. It’s a fact that often stirs up controversy, with many Americans feeling this is too late in life and that the age should be lowered.

According to a survey by Natixis Investment Managers, the majority of Americans are expecting to retire by the age of 62. This means they’d be retiring early — a reality that comes with heavy responsibilities (the pressure is on to maximize income, savings and investments) and may not be achievable for many.

The debate over whether 66/67 is too late a retirement age prompts the question: How do other countries handle retirement, and at what ages are their people able to retire? Let’s see how the U.S. sizes up in comparison to 10 other countries.

Spoiler alert: Most of these 10 countries let people retire at a younger age, but there are some interesting exceptions. We can learn so much from this.

“Comparing global retirement ages provides insight into the intricate dance of economics, societal expectations and governmental strategies,” said Eliza Arnold, CEO and co-founder of Arnie. 

See the top five places to retire outside the U.S.

The Netherlands has earned great acclaim worldwide for its dedication to healthy living. The Dutch diet is generally much more nourishing that what we’re used to in the U.S., and people tend to live longer. The average life expectancy in the Netherlands is currently 82.78 years, according to projections by the United Nations; every year that number ticks up. In the U.S., the average life expectancy is 79.74.  

But a longer life could mean a longer wait until retirement. In the Netherlands, the statutory retirement age is 66 years and 10 months. In 2024, it will be 67 years old. Raising the retirement age here is being done to keep pensions affordable. 

Like the Netherlands, Israel is fairly on par with the U.S., with the full retirement age being 67 years old; but wait, there’s a catch: Only men are expected to work this long. For women in Israel, the full retirement age is 62.

Also like the Netherlands, life expectancy here is much longer than in the U.S., with the United Nations projecting that the current life expectancy is 82.49 years. It appears that the same logic is at play in Israel: the longer you’re expected to live, the later you’re allowed to retire with full benefits.  

In the UK, the state pension age is 66. But possibly not for long. There are reports that legislation in the UK is fighting to push the age back to 68, though that doesn’t look like it will happen just yet. The principle reason behind wanting to raise the age is simple: people are living longer. Life expectancy in 2018 to 2020 was 79 years for men and 82.9 years for women. 

In Canada, you must be 65 to retire; but, as with the U.S., you can retire earlier — as young as 60. But also like in the U.S., accepting benefits before your full retirement age will affect your pension benefits going forward (the earlier you begin collecting benefits, the quicker you will use them up). Interestingly, you have until age 70 to collect benefits in Canada — same as in the U.S.

It’s interesting that the age you can retire with pension benefits in Canada is lower (if only by a year or so) than it is in the U.S., given that Canadians live so much longer: Life expectancy is about 83.

In New Zealand, there is no employment law mandating retirement age, but the social norm is to retire at 65, which is when you can start receiving New Zealand Superannuation, aka “NZ Superannuation,” “NZ Super” or “Super.” This is basically New Zealand’s version of Social Security. New Zealand actually raised this minimum of 65 years old from 60, over a nine-year period. This ties to the fact that more older New Zealanders are participating in the workforce.

Whether 65 is too late an age for New Zealanders to retire has been a hot topic in the political sphere there; but, when considering that life expectancy is about 83, this policy is still a lot more generous than what you find in the U.S., given its lower life expectancy. 

Though life expectancy in Mexico has been on the rise, it’s still lower than in many other countries, hovering around 75. The retirement age in Mexico is 65, giving it a slight edge over the U.S., but one that isn’t very impressive when you consider the lower life expectancy there.

Mexico’s retirement income system comprises three components: a means-tested age pension called 65+; a mandatory defined contribution system with a guaranteed pension and separate individual and occupational private plans — similar to what we have in the U.S.

In Japan, retirement is a tricky issue. The retirement age of Japan’s national and local civil servants was bumped up to 61 from 60 last April to address labor shortages associated with Japan’s declining population.

Going forward, the retirement age will be raised by one year every two years until it reaches 65 in 2031. Though raising the age of retirement in Japan has been a touchy point of debate, 65 is still younger than the United States’ retirement age.

Additionally, life expectancy in Japan is notably longer than life expectancy in the States. In 2023, people in Japan are expected to live until 85 on average. High life expectancy in Japan is largely attributed to low obesity rates, low consumption of red meat and higher consumption of plant foods and fish.

Emmanuel Macron, the president of France, recently enacted a controversial measure to raise the retirement age from 62 to 64. Raising the age comes as a bit of a shocker considering how famously France embraces and supports work/life balance and cherishes time outside the office (five weeks of vacation is mandatory there).  

But once again, a much higher life expectancy should be noted. People in France are projected to live until 83 on average. Low mortality is partly associated with a nourishing diet and smaller portions than we commonly see in the U.S.

In Greece, retirement is a wee bit complicated. You are entitled to a full pension if you have covered 40 insurance years (12,000 contribution days) and you are 62 years of age OR you have 15 insurance years (4,500 contribution days) and are 67.

You are entitled to a reduced pension if you have covered at least 4,500 insurance days and are 62. What this means is that like in the U.S., you have the option to retire and begin collecting benefits early, at 62, but 67 appears to be the standard age.

In this way, Greece is a lot like the U.S. — but there is one big difference, and that’s life expectancy. In Greece, life expectancy is 82.

The standard retirement age in Italy is 67, and you can qualify for state pension if you’ve made at least 20 years of Social Security contributions.

This retirement age is pretty on par with what we have here in the U.S., but again, there’s that massive difference: longevity. In Italy, life expectancy is 84. You could enjoy a much longer retirement in Italy, just because you stand to live longer there.