What Age Should You Retire? How to Plan Your Financial Timeline

When’s the perfect time to hang up the work boots and start sipping margaritas on the beach? Spoiler: There’s no one-size-fits-all answer. Retirement isn’t just about hitting a magical number—it’s about balancing your dreams, finances, and lifestyle.

Here’s the thing: the average retirement age has been creeping up. Back in the 1990s, most folks were calling it quits at 57. Now? The average is closer to 62 for women and nearly 65 for men. Why the shift? Longer lifespans, unpredictable economic conditions, and the growing realization that retirement is expensive—like, really expensive.

The good news? You don’t have to leave your future to chance. In this blog, we’ll walk you through the key factors that influence retirement timing and help you create a financial timeline that works for your goals. Whether you’re dreaming of early retirement or just aiming to make work optional someday, this guide is your roadmap to making it happen. Let’s dive in!

Understanding the Average Retirement Age

The Numbers Speak Let’s break it down: the average retirement age in the U.S. is currently 64.7 years for men and 62.1 years for women. That’s a far cry from the golden days of the 1990s when people were saying “peace out” to their 9-to-5s at just 57. Now, it seems we’re all working a little longer before swapping spreadsheets for sunsets.

The Trend So, what’s driving this upward shift? A few big things: 

• We’re living longer. Modern healthcare and healthier lifestyles mean more years to enjoy retirement—but also more years to fund it.

• Economic changes. From the Great Recession to rising costs of living, people are feeling the pressure to stay in the workforce longer to build up a financial cushion.

• Work preferences are evolving. Retirement isn’t always about leaving the workforce completely anymore. For many, it’s about transitioning to part-time work, freelancing, or pursuing passion projects that keep income flowing.

Bottom line? Retirement age isn’t just a number—it’s the result of shifting priorities, financial realities, and what a fulfilling life means to each of us.

Key Factors Influencing Retirement Age

Economic Conditions Money makes the world go 'round—and it’s a major player in retirement timing. Job security and savings rates can make or break your retirement plans. A stable, well-paying job with benefits can accelerate your ability to retire, while layoffs, stagnant wages, or an unexpected economic downturn can push that goal further down the road.

Then there’s inflation—the silent killer of purchasing power. If prices skyrocket, your retirement savings might not stretch as far as you planned. Add in economic uncertainties, like recessions, and many people choose to stay in the workforce longer just to feel financially secure.

Health Status Your health isn’t just a personal matter—it’s a financial one. Poor health can force early retirement, while good health may allow you to keep working (and earning) well into your 60s or 70s.

Take Sarah, for example. She’s a 58-year-old marketing exec who planned to retire at 60. But after a health scare, she realized that her priorities had shifted. Early retirement became less about financial readiness and more about spending time with her family while she still could.

Moral of the story? Health is wealth, and it’s a huge factor in deciding when to retire.

Social Security Benefits Ah, Social Security—the ultimate “take it now or wait it out” dilemma. You can start collecting benefits as early as 62, but here’s the catch: you’ll take a reduced payout for life. On the flip side, waiting until your full retirement age (66-67, depending on your birth year) means you’ll pocket 100% of your benefits.

Want even more bang for your buck? Hold off until age 70, and you could see an 8% boost in payouts for every year you delay past full retirement age. But don’t wait just for the numbers—your health, savings, and life goals should all factor into the equation.

Lifestyle Goals and Personal Preferences This is where it gets personal. Are you dreaming of retiring early and living a minimalist lifestyle, or would you rather work longer so you can splurge on epic vacations and fine dining in your golden years?

Ask yourself: 

• What kind of lifestyle do I want during retirement?

• Do I value freedom and flexibility now, or do I prefer financial security later?

Retirement is about designing your future—whether that’s a simple life in a cabin by the lake or globe-trotting adventures funded by an extended career.

The big takeaway? Your retirement age isn’t just a number—it’s the sum of your economic situation, health, and personal priorities. By weighing these factors, you can create a plan that fits your unique needs and goals.

Planning Your Financial Timeline

Set Your Retirement Date Choosing a retirement age is like setting your GPS destination—every financial decision flows from it. Knowing when you want to retire helps determine how much you need to save, invest, and budget. Without a clear goal, it’s easy to wander off track.

Estimate Your Retirement Needs Here’s the golden rule: plan to save 70%-80% of your pre-retirement income to maintain your current lifestyle. But don’t stop there—factor in big-ticket items like healthcare costs, travel plans, and the inevitable beast: inflation.

Let’s break it down with an example: 

Annual Pre-Retirement Income	Savings Needed for Retirement (70%-80%)
$50,000	$35,000 - $40,000 annually
$100,000	$70,000 - $80,000 annually
$150,000	$105,000 - $120,000 annually

These numbers aren’t set in stone, but they give you a ballpark figure to aim for. The earlier you start crunching the numbers, the better.

Create a Savings PlanThe earlier you start saving, the less you’ll have to stress later. Experts recommend setting aside 15% of your gross annual income throughout your working life. And if you’re already feeling stretched thin? Start small and increase contributions as your income grows.

Hack Your Savings: Automate it. Set up direct contributions to a 401(k), IRA, or HSA (if you qualify). That way, you’re saving without even thinking about it.

Invest Wisely Your investment strategy depends on where you are in your retirement timeline: 

• Younger investors: Time is your greatest ally. Focus on high-growth investments like stocks or index funds. Sure, there’s risk, but you’ve got decades to recover from market dips.

• Near-retirement investors: It’s time to play defense. Shift to conservative, stable options like bonds or dividend-paying stocks to protect your nest egg.

Case Study: 

• Jake, 30: Allocates 80% of his portfolio to stocks and 20% to bonds, focusing on growth.

• Linda, 55: Flips the ratio—80% bonds, 20% stocks—to prioritize stability over growth.

Both are on track, but their strategies reflect their timelines.

Review and Adjust Regularly Life has a funny way of throwing curveballs—job changes, unexpected medical bills, or even a pandemic. That’s why your financial plan should be a living document. Set a calendar reminder for annual or bi-annual reviews to reassess your income, expenses, and investment performance.

Real-Life Story: Planning AheadMeet Josh and Laura, a couple in their early 40s. They started saving at 35 with a clear goal: retire by 60. By tracking expenses, automating 15% of their income into retirement accounts, and shifting to conservative investments at 45, they’ve stayed on course. Sure, they’ve had to tweak their plan—Laura’s career pivot meant saving less for a year—but their early start and flexibility kept them on track.

Key takeaway: The earlier you start planning, the more time you have to adapt when life inevitably happens.

With a clear retirement timeline, savings plan, and regular check-ins, you’ll set yourself up for a stress-free exit from the workforce. Future-you will thank present-you for the thoughtful planning.

Conclusion

Retirement isn’t a one-size-fits-all milestone—it’s a deeply personal decision shaped by your financial situation, health, and lifestyle goals. The key to figuring out your ideal retirement age lies in setting a clear timeline, saving consistently, and adjusting your plan as life happens. Whether you’re aiming for early retirement or simply want the peace of mind that comes with being financially prepared, the best time to start planning is now.

Need help getting started? Sign up for a free consultation with a CPA to create a personalized plan that sets you up for long-term success. The future you’ve been dreaming of is closer than you think—let’s make it happen!