Each Generation Has a Different Expected Retirement Age — and Only One Thinks It’s 65
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Gabrielle Olya
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Levi Leidy
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On average, Americans expect to retire at the traditional retirement age of 65, a recent Schwab study found. But that number varies widely depending on the generation, with the expected retirement age for the various generations ranging from 60 to 68.
Here’s a look at when each generation expects to retire.
Expected Retirement Age by Generation
The closer Americans are to retirement age, the later they believe they will retire, the Schwab study found.
“Each generation likely has a different retirement expectation based on their life stage,” said Lee McAdoo, managing director at Schwab Retirement Plan Services. “Younger generations have the powerful gift of time, so they can take a more aggressive approach to their retirement saving goals and retirement age, and start saving earlier than older generations did to meet their goals.”
Here’s a look at the average age each generation plans to retire:
- Gen Z: 60 years old
- Millennials: 64 years old
- Gen X: 65 years old
- Boomers: 68 years old
“While older workers have less time to save or adjust their goals, they also have a more accurate picture of what their needs in retirement will be, and when they’ll likely be able to retire,” McAdoo said.
Can Gen Z Actually Retire at 60?
The oldest members of Gen Z are now 27, so a retirement age of 60 is still more than three decades away. While retirement at 60 will take a lot of planning and discipline, McAdoo notes that it isn’t impossible.
“The good news for younger workers is that they have a high level of engagement in their retirement plans, and access to many more resources than older workers had when they started out,” she said. “Their eager attitude about retirement preparedness puts younger workers in a good position to meet their ambitious goals.”
The Traditional Retirement Age May Evolve
Sixty-five has long been thought of as the traditional retirement age, but only Gen X believes that this will be the age they retire.
“It’s common for expectations to shift as workers grow older and near the ‘traditional’ retirement age,” McAdoo said. “Workers’ retirement age projections often result from calculating whether or not they can afford to stop working. The oldest members of Gen X are currently 59 years old, so they still have some time to save and prepare for a comfortable retirement at age 65.”
She notes that Gen X might shift their retirement age expectations as they get closer to 65.
“Retirement age is often a moving target that changes along with personal circumstances, and as they get closer to 65, we might see Gen Xers amend their plans depending on changes in their income, inflation, market performance and other factors,” McAdoo said.
While the average American still considers 65 to be retirement age, this opinion could change over time — and McAdoo predicts it will get earlier.
“Retirement goals are often tied to age 65 because that’s when Americans qualify for Medicare,” she said. “For many, access to Medicare is central to their overall retirement planning as an affordable way to cover healthcare costs, one of the highest expenses we face in retirement.
“However, many people plan and ultimately choose to retire earlier,” McAdoo continued. “For those who aim to retire before becoming eligible for Social Security or Medicare, it is even more important to start saving as early as possible, contribute as much as you can to your 401(k) and other retirement vehicles and take advantage of professional advice to help keep you on course.”
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