Nearly half of retirees leave work earlier than planned — the 3 reasons Americans are retiring at 62 instead of 65

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Most American workers presume they'll telephone it quits astir 65. But astir are wrong, and the spread betwixt anticipation and world carries superior fiscal consequences.

According to the 2026 Retirement Confidence Survey enactment retired by the Employee Benefit Research Institute (EBRI) and Greenwald Research, astir fractional of retirees (46%) near the workforce earlier than planned (1). The mean existent status property was 62, portion the mean property workers expected to discontinue remained 65.

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A abstracted survey paints an arsenic striking picture. The Society of Actuaries Research Institute (SARI)'s latest Retirement Risk Survey — which surveyed 2,012 Americans aged 45 to 80 — recovered that 59% of retirees near the workforce earlier they had expected, portion lone 6% retired aboriginal than planned (2).

What's driving those aboriginal exits?

Three causes predominate the information — and 2 of them person thing to bash with idiosyncratic choice. Here are the apical 3 reasons wherefore Americans are retiring early.

1. Health setbacks

Health problems are the azygous astir communal origin of unplanned aboriginal retirement, and they autumn hardest connected lower-income workers. According to the SARI report, changes successful wellness presumption were cited by 49% of retirees with incomes nether $35,000 arsenic the superior crushed for retiring aboriginal (2).

The EBRI/Greenwald survey reinforces this finding, with TheStreet noting that 41% of those who retired aboriginal did truthful due to the fact that of a wellness occupation oregon disablement — 10% much than the twelvemonth earlier (3).

That fiscal interaction compounds quickly. Retiring astatine property 62 alternatively of 65 means 3 less years of contributions, 3 further years of withdrawals and — critically — 3 years without employer-sponsored wellness security earlier Medicare eligibility begins astatine property 65 (4).

2. Job nonaccomplishment and employer-driven disruption

The 2nd large origin of aboriginal status isn't voluntary either. Corporate restructuring, downsizing and concern closures accounted for 35% of aboriginal retirements, according to the EBRI/Greenwald survey. When older workers suffer jobs, reemployment astatine comparable wages is often hard to execute — and galore efficaciously discontinue by default alternatively than by plan (3).