Good Question: How Old Are We When We Retire?
MINNEAPOLIS (WCCO) - Growing up, many of us assume we'll just retire by our own choice at age 65. But a new survey finds we're actually leaving our jobs earlier than that.
So, when do we retire?
Two-thirds of people retire before the age of 65. According to Gallup, the average age is 62. That's about three years earlier than people report expecting they'll retire.
"Some of it could be health," said Colleen Manchester, a professor of economics with the University of Minnesota. "There's a significant increase in going on disability in that age of worker. They end up having a very taxing career and having health issues."
According to a survey from the Employee Benefit Research Institute, 49 percent of people leave the workforce earlier than they planned. Most often, it's because of health or disability (61 percent), to take care of a family member (18 percent), changes to their company (18 percent) or changes in the skills required for their job (7 percent).
Manchester said others also want flexibility in their lives and take up part-time employment after retirement.
In 1991, the average actual retirement age was 57. Some of the reasons behind the increase in retirement age: People are living longer and are more educated, which means they are more likely to stay in their jobs.
But Manchester points out a change in the benefit landscape could mean delaying retirement. More people are offered 401(k)s, rather than the fixed pension plans more common a generation ago. People could also be reeling from the effects of the depression. Only 28 percent of non-retirees think they'll have enough money saved for retirement.
"In modern society, we demand a lot of things for our life in order to do that," said Girma Tola of Coon Rapids. "You have to work hard and work longer."
