There’s a Big Gap Between Ideal and Retirement Ages, Yet Americans Are Optimistic — Here’s Why

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“Retirement” used to be a pretty straightforward concept that meant you were permanently leaving the workforce — usually at age 65 — and heading into a life of leisure. Today, things are not so clear-cut.

The average retirement age in the U.S. ranges from 62 to 66, depending on the data source. And many aren’t even “retiring” in the traditional sense. With the rise of remote work, many “retirees” still earn money on the side long after leaving full-time careers.

The one thing many Americans do have in common today is that they’re retiring later than they might have hoped. On average, Americans target a retirement age of 62 but anticipate they might work until around 70, according to a new survey of 1,006 U.S. adults from Empower.

Here’s a look at the ideal and expected retirement ages of different age groups, based on Empower survey averages:

How Many Are Meeting Their Retirement Goals?

Those gaps notwithstanding, most survey respondents (54%) said they’re on track to retire as planned.

However, some feel they have to delay retirement by an average of six to eight years due to factors such as rising living costs (70% of respondents), insufficient savings (50%), inflation (48%) and unexpected financial emergencies (39%).

Many respondents have started building a financial cushion, though the percentages here seem a little low. Only 39% of respondents have established an emergency fund, while less than one-third (32%) have started saving for retirement.

Why Americans Are Optimistic About Retirement

Despite those headwinds, financial optimism among Americans remains pretty high. Six out of 10 said they are confident about reaching their financial goals.

That’s mainly because many unretired Americans believe they are “making headway” on key financial goals. Nearly half (47%) have paid off debt, while 40% have achieved homeownership.

Here are some other highlights from the survey:

• On average, Americans aim to accomplish their financial milestones at these ages: Purchasing a home by 38, building an emergency fund by 40, paying off debt by 42, achieving financial independence by 46, and securing retirement funds by 47.
• Nearly half of respondents (49%) have a clear financial plan to meet these targets, including 49% of millennials and 50% of Gen Z. However, 32% recognize they need a structured plan, particularly among Gen Xers (37%).

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