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Many Americans who expect to work until 65 actually leave the workforce around 62 because retirement plans collide with health problems, caregiving, layoffs, limited job opportunities and changing priorities. The Employee Benefit Research Institute (EBRI) found a 2023 median expected retirement age of 65 versus a median actual age of 62. Nearly half of retirees (46%) said they retired earlier than planned, although early departure is not always involuntary: Federal Reserve data show that wanting more time for family or other activities was the most frequently cited reason.
What does the three-year retirement gap actually measure?
The three-year difference is a median comparison from survey responses, not a prediction that every worker will retire at 62. EBRI’s 2023 survey measured what people expected before retirement and the age at which current retirees actually stopped working. Its results should be read alongside, not merged with, other surveys that use different samples and question wording.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteEBRI also found that 46% of retirees left earlier than they had planned. Among those early exits, 35% cited hardship, including health or disability issues. That means an earlier retirement can reflect either a deliberate choice or circumstances that narrowed a person’s options.
Why do people leave work before their planned age?
Health and disability
Health limitations can make a physically or mentally demanding job impossible, reduce hours, or make continued employment unsafe. In the Federal Reserve’s 2025 household survey, 28% of retirees cited health problems. EBRI’s hardship finding likewise places health shocks among the main reasons plans break down.
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Layoffs and employer changes
Company reorganizations, layoffs and business closures can push workers out in their early 60s, when finding a comparable job may take longer. A case described by the Associated Press involved clients who searched for work after losing jobs in their early 60s and ultimately retired when the search failed.
Caregiving responsibilities
Seventeen percent of retirees in the Federal Reserve survey said caring for family influenced their retirement. The responsibility may involve a spouse, parent or another relative and can require leaving a job abruptly or reducing work before planned retirement.
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Age-related difficulty finding another job
Just over one in ten Federal Reserve respondents said they were forced to retire or could not find available work. A layoff therefore does not always lead to a new job; an unsuccessful search can turn an involuntary separation into permanent retirement.
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Choice, family time and burnout
Early retirement is not necessarily a financial or personal failure. Fifty-four percent of retirees told the Federal Reserve that wanting to do other things or spend time with family mattered, and 41% cited reaching normal retirement age. People may decide that additional earnings are worth less than time, flexibility or relief from demanding work.
How common are health and employment constraints?
The Federal Reserve data show that constraints are unevenly distributed. Health, caregiving and work-availability reasons together affected 46% of retirees, according to the survey’s grouped measure. Among retirees with a high-school education or less, 53% cited at least one of those factors, compared with 37% of retirees with at least a bachelor’s degree.
| Survey and year | Finding | How to interpret it |
|---|---|---|
| EBRI, 2023 | Expected retirement age: 65; actual median: 62 | Median gap across surveyed expectations and retiree experiences |
| EBRI, 2023 | 46% retired earlier than planned; 35% of those cited hardship | Hardship share applies to the early-retirement group, not all retirees |
| Federal Reserve, 2025 | 54% other activities or family; 41% normal retirement age | Preference and milestone reasons were common |
| Federal Reserve, 2025 | 28% health; 17% caregiving; just over 10% forced out or no work | Respondents could give multiple answers |
| TIAA Institute/Ipsos, 2025 fieldwork published 2026 | Current retirees left at 57 on average; future retirees expect 62 | Five-year average gap in a different sample and measure |
Because respondents could select more than one reason, the percentages should not be added. The EBRI, Federal Reserve and TIAA Institute/Ipsos studies are complementary snapshots, not a single combined national estimate.
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What does the newer TIAA evidence add?
TIAA Institute/Ipsos fieldwork conducted in 2025 and published in 2026 found that current retirees left the workforce at an average age of 57, while future retirees expected to retire at 62—a five-year average gap in that study. Thirty-seven percent of retirees said they had underestimated life events such as health problems, job loss or caregiving. The result reinforces how quickly circumstances can overtake a long-term plan, while using a different average and sample from EBRI’s median figures.
What happens to Social Security if you stop working at 62?
Leaving work and claiming Social Security are separate decisions. The Social Security Administration says, “You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age.” For people born in 1960 or later, SSA’s example shows benefits reduced by 30% when claimed at 62 rather than at a full retirement age of 67.
A person can leave a job at 62 and delay claiming, use savings or other income, or claim immediately. Claiming earlier generally means a permanently smaller monthly benefit than waiting until full retirement age, so a layoff should not automatically trigger an immediate claim without comparing cash-flow needs and lifetime-income trade-offs.
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How can you pay for health insurance before Medicare?
Medicare generally covers eligible people at 65 or older. Someone retiring around 62 therefore needs a bridge for roughly three years unless another source of coverage applies. Common routes include an employer or spouse plan, an Affordable Care Act marketplace plan or another eligible arrangement. Premiums and eligibility depend on household income, location and circumstances, so the coverage decision should be made before the employer plan ends.
How should a worker prepare for an earlier-than-planned exit?
- Model a forced-retirement date. Run a budget for leaving work at 62, not only at 65, including taxes, debt payments and essential spending.
- Separate the income decisions. Compare stopping work with claiming Social Security immediately, delaying the claim, or using savings temporarily.
- Price the pre-65 insurance bridge. Obtain actual premiums and out-of-pocket limits for available coverage before resigning or accepting a severance package.
- Build flexibility into employment. Consider part-time, consulting or less physically demanding work if health or caregiving makes a full-time role unrealistic.
- Review the plan after major shocks. A diagnosis, layoff or family-care need can change the appropriate claiming age, spending rate and insurance choice.
Frequently Asked Questions
Can I retire at 62 but wait to claim Social Security?
Yes. Stopping work does not require starting benefits. You can use savings, other income or a spouse’s resources while delaying a claim, subject to your own cash-flow needs and eligibility rules.
What if I lose my job at 61 and cannot find another one?
Treat the event as a potential early-retirement scenario rather than assuming reemployment will arrive quickly. Recalculate spending, health coverage and the timing of Social Security before making an irreversible claim.
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Why are early-retirement pressures different by education level?
The Federal Reserve found that 53% of retirees with a high-school education or less cited health, caregiving or lack of work, versus 37% of those with at least a bachelor’s degree. Job demands, access to flexible work and financial resources can differ across education groups.
How much should I budget for the years before Medicare?
There is no single national figure because marketplace premiums and subsidies vary by age, income, household size and state. Get a location-specific estimate and include deductibles, coinsurance and prescription costs, not just the monthly premium.
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