Planning a retirement age isn’t so bad; this prepares you for the journey ahead. Obviously, you can’t work all your life, so you must take a break at some point. This has raised concern for many people living in the United States about the average retirement age.
According to the U.S. Census Bureau data, the average retirement age in the united states is 65 for men and 63 for women.
Though some factors may affect the retirement age, such as personal circumstances or being laid off from a job at an early age (unemployment), got tired of searching and decided to call it a quit.
In most cases, people retire because they need to. Here we shall be looking at the average retirement age in some states in America and the pros and cons of retirement at an early age.
What is The Average Retirement age in the United States?
Though it is funny because some states in the US have different retirement ages, but on average, according to the U.S. Census Bureau data, the average retirement age in the united states is 65 for men and 63 for women.
How much do I really need to save for retirement?
There’s no fail-proof predictor of how much money you’ll need once you retire. This depends on how you choose to spend your retirement and how much you hope to save. However, retirement experts have offered various rules of thumb about how much you need to save for retirement.
Experts say your retirement income should be about 80% to 90% of your final pre-retirement annual income. For instance, if you make $100,000 annually at retirement, you need at least $80,000 yearly to have a comfortable lifestyle after leaving work.
How Much to Save for Retirement by Age
Investment firm Fidelity has created savings targets by age to help you know how much you should have saved if you want to retire at 67.
| Age | Annual Salary |
|---|---|
| 30 | 1x annual salary |
| 40 | 3x annual salary |
| 50 | 6x annual salary |
| 60 | 8x annual salary |
| 67 | 10x annual salary |
Average Retirement Age By State In The U.S.
Some states in the U.S. have an average retirement age. Look at the table below
| States | Retirement age | States | Retirement age | States | Retirement age |
|---|---|---|---|---|---|
| Alabama | 62 | Georgia | 63 | Maryland | 65 |
| Alaska | 62 | Hawaii | 66 | Massachusetts | 66 |
| Arizona | 63 | Idaho | 64 | Michigan | 62 |
| Arkansas | 62 | Illinois | 64 | Minnesota | 65 |
| California | 64 | Indiana | 63 | Mississippi | 63 |
| Colorado | 65 | Iowa | 65 | Missouri | 63 |
| Connecticut | 65 | Kansas | 65 | Montana | 64 |
| Delaware | 63 | Kentucky | 62 | Nebraska | 65 |
| District of Columbia | 67 | Louisiana | 62 | Nevada | 63 |
| Florida | 64 | Maine | 63 | New Hampshire | 65 |
| New Jersey | 65 | New Mexico | 62 | New York | 64 |
| North Carolina | 63 | North Dakota | 65 | Ohio | 63 |
Global Retirement Statistics
Each country has an average retirement age which varies from country to country. Here is an average global retirement.
| Country | Average Retirement Age | Official Retirement Age |
|---|---|---|
| United States | 66.85 | 67 |
| United Kingdom | 64.5 | 65 |
| Canada | 64.75 | 65 |
| France | 60.55 | 62 |
| Greece | 60.7 | 67 |
| Italy | 61.7 | 66.58 (men)/65.58 (women) |
| Netherlands | 63.25 | 66 |
| China | 64 | 60 (men)/50 (women) |
| Israel | 67.8 | 67 (men)/62 (women) |
| New Zealand | 68.4 | 65 |
| Mexico | 69 | 65 |
| Japan | 69.95 | 62 |
What to Consider Before Retiring
Before You Retire, there are 6 things to consider; this will help you stay on track.
- Know When You Are Ready To Retire: This is important because it prepares your mind for the journey ahead; the decision is all yours.
- Start saving: Learning to save is a good habit, whether for retirement or another goal.
- Know your retirement needs: Knowing how much you need for retirement is good experts say you need to save 80% to 90% of your annual income to enjoy a successful retirement.
- Don’t touch your retirement savings: Don’t ever touch your retirement savings; hence you will ruin your retirement plan. This means starting all over, or you have to work or save double than usual.
- Find out about your Social Security benefits: On average, Social Security retirement benefits replace 40 percent of pre-retirement income for beneficiaries
- . Ask your employer to start a plan: If your employer doesn’t offer a retirement plan, suggest that it start one. There are several saving plan options available. Your employer can set up a simplified plan to help you and your employer.
The Key to a Better Retirement Age
The key to a better retirement is planning early and saving for retirement. Seek retirement advice and know the pros and cons of retirement, especially at an early age.
Pros and Cons of Early Retirement
According to the U.S. Census Bureau, the average retirement in the United state is 65, but do you wish to retire earlier than that? let’s say at 50 or 55yrs. A healthy savings portfolio and debt-free living can give you a solid retirement platform.
Here are the pros and cons of early retirement.
Conclusion
Many states in America have a retirement age, but the average retirement age in the united states, according to the U.S. Census Bureau, is 65 for men and 63 for women. However, there are some factors you should consider before retiring, including planning total savings, health expenditure, monthly expenses, etc. This will help you enjoy retirement.
FAQ
When to retire depends on you; you decide what age you wish to retire and how much savings you plan to get before retiring. But the average retirement in the United state is 65 for men and 63 for women.
Age is just a number. Retirement shouldn’t be based on this fact alone. Retirement should be based on personal decisions, financial status, or health-related.
Experts say your retirement income should be about 80% to 90% of your final pre-retirement annual income.
Many experts maintain that retirement income should be about 80% of a couple’s final pre-retirement annual earnings. Fidelity Investments recommends saving 10 times your annual income by age 67.
The 4% rule is a guideline used to determine how much a retiree can withdraw annually from a retirement account. It is intended to make retirement savings last for 30 years.
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