Retirement Retirement Planning

Here's the Perfect Retirement Age According to Financial Advisors

Will you be able to retire at the 'perfect' age?

By Sarah Sharkey , Edited by Kaitlin Milligan

Updated March 4, 2026

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Leaving the workforce behind permanently might sound like a dream come true, but when to leave the working world is a difficult question. As you plan for retirement, you'll likely realize that the right retirement age varies based on your unique situation.

Empower recently conducted a study that surveyed over 1,000 Americans. Explore what they had to say about when to retire.

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Americans think this is the "perfect" retirement age

Although traditionally, retirement age has been defined as age 65, many workers choose to retire either earlier or later than this mythical milestone. But a new survey by Empower found that Americans believe the 'perfect' retirement age is actually 58.

Interestingly, the survey also found that the 'perfect' age to buy a home was 30 and the 'perfect' age to become debt-free was 41.

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When people actually retire

While retiring at age 58 might be a goal that many hold dear, the reality is that Americans are retiring much later than 58. According to the Center for Retirement Research at Boston College, men who work retire at an average age of 64, and women who work retire at an average age of 62, as of 2024.

That's the average, but many Americans are working even later, and some who retired recently have left the workforce earlier than they expected. In fact, 58% of Americans retired earlier than planned in 2024, according to a Transamerica Center for Retirement Studies report.

For those who left the workforce ahead of schedule, personal health issues and job losses were some of the top reasons for the move.

What financial advisors have to say

Saying goodbye to the pressures of work early may sound appealing, but financial advisors caution against jumping into retirement before your finances are ready.

"You may end up coming up short [or] not having enough money if you quit work too early," said Carolyn McClanahan, a CFP and founder of Life Planning Partners, in an interview with CNBC.

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Why early retirement sounds appealing, but may be risky

It's tempting for many to leave the working world at the relatively early age of 58. However, there are risks associated with this choice, particularly the fact that retiring in your 50s could mean a retirement that lasts 30 or 40 years. That's a lot of time to cover the bills without a steady income, especially if your retirement savings are rather slim.

The typical American has an average retirement savings balance of $491,022, according to data from Empower. For many, that might not be enough to cover decades of retirement costs, even with Social Security thrown into the mix.

How long will your money need to last?

If you retire before 60, you'll likely need your money to last a bit longer than the traditional retiree.

According to the Centers for Disease Control, life expectancy in the U.S. is 81.1 years for women and 75.8 years for men. Of course, you might live more or less than that, but the estimates give you a starting point to consider your retirement financials. For example, if you're a woman retiring at 58, you might need to fund at least 23 years of retirement.

Strategies for retiring early

If you are planning to retire early, it's critical to take a realistic look at your financial situation. Consider how long you'd like your funds to last, your resources, and your retirement goals.

For example, if you plan on traveling extensively in retirement, map out how much you'd like to spend every year on travel, on top of your regular expenses. Generally, the 4% rule of thumb suggests that you should have at least 25 times your annual expenses invested for retirement. So, if you plan to spend $100,000 per year, you'd need to have $2.5 million invested for a standard retirement timeline.

Beyond running the numbers, consider your openness to working part-time. Many older Americans work part-time to cover some of their expenses, which stretches out their retirement savings. If you are open to a part-time second act, this could really open up your possibilities.

Another detail to consider is your long-term care plans. The costs of long-term care can derail carefully laid retirement plans. Since the Office of the Assistant Secretary for Planning and Evaluation expects that 70% of adults reaching age 65 will eventually need long-term care, it's important to factor these potential costs in.

If possible, consider purchasing long-term care insurance to help out when the time comes.

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Signs you're actually ready to retire

The 'perfect' age to retire isn't a one-size-fits-all answer. In fact, according to the Empower study, only 17% think people should achieve milestones by a specific age. Instead, the right age to retire varies based on your personal readiness.

A few signs that might signal you are ready to retire include being debt-free, having a plan for health care costs, and having a consistent income stream unrelated to your active work. Some examples of those income streams might include dividends from stock or rental real estate income.

And before you jump into retirement, confirm you are emotionally ready to leave the workforce. It's a major adjustment that many struggle with. If you are concerned about what you'll do with your time, start brainstorming now to find a path in your post-working years.

Bottom line

As you work to set yourself up for retirement, deciding on the perfect age to move forward can be a difficult choice.

If you aren't sure that you are financially ready, consider meeting with a financial advisor to assess the situation and offer guidance on your next options.

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