What Age Can I Retire?

by | Aug 27, 2025 | Retirement

What Age Can I Retire? (And Why That’s the Wrong Question)

When most people think about retirement, they think about a number. Whether it’s an age — 65 has long been considered the retirement age in the United States— or a dollar amount — like the $1.26 million* most Americans think they need to retire, you’re probably waiting to hit one or the other before your retire. 

But asking yourself, “At what age can I retire?” might not be the right question! That’s because retirement isn’t just about age. It’s about asking yourself, “Am I ready?” financially, emotionally, and practically.

 

Why Age 65 Isn’t the Retirement Gold Standard Anymore

The original Social Security Act of 1935 set the full retirement age at 65, even though life expectancy at the time was just 61 years for men and 65 years for women. In other words, most people didn’t expect decades of post-work life.

Fast forward to today:

What we want to point out is that age is no longer the main determining factor. Instead, the “right” time to retire depends on your circumstances, goals, and vision for the next stage of life.

 

Factors That Actually Determine Retirement Readiness

 

1. Financial Security

This is the obvious starting point. Can your income sources (such as Social Security, retirement accounts, pensions, part-time work, rental income, etc.) cover your lifestyle for 20–30 years or more?

A 2023 Employee Benefit Research Institute survey found that only 64% of workers feel confident about having enough money for a comfortable retirement. That confidence comes from more than just a savings balance; it’s about having a sustainable withdrawal strategy, tax-efficient income planning, and contingencies for healthcare or market downturns.

2. Health & Health Care Savings

Your health isn’t just a factor in when you retire. It’s a major driver of how much retirement will cost. Healthcare is consistently one of the largest expenses retirees face, often outpacing housing and food.

According to Fidelity’s 2024 Retiree Health Care Cost Estimate, the average retiree will need $165,000 (after taxes) to cover healthcare expenses throughout retirement. That figure includes premiums, copays, and out-of-pocket costs but not long-term care, which can add significantly more.

Poor health can push people to retire earlier than planned, sometimes before they qualify for Medicare, forcing them to cover expensive private insurance premiums. On the other hand, excellent health might encourage working longer, both for personal fulfillment and to keep employer-sponsored coverage.

Planning ahead for healthcare costs, both predictable and unexpected, is critical. That means considering:

  • How you’ll bridge the gap to Medicare if you retire before age 65
  • Projections for increased healthcare costs (retiree healthcare costs increased 4% in just 1 year from 2023 to 2024)
  • Whether to purchase supplemental or long-term care insurance
  • Using Health Savings Accounts (HSAs) strategically to cover tax-free medical costs later in life

The reality is this: your retirement plan isn’t complete if it doesn’t fully account for the cost of staying healthy for 20, 30, or even 40 years after you leave full-time work.

3. Purpose

One of the biggest surprises in retirement is that the adjustment isn’t always easy. In fact, studies find that retirees with a strong sense of purpose tend to have better physical and mental health outcomes. That purpose can come from volunteering, pursuing creative passions, mentoring, traveling, or even part-time work.

4. Lifestyle Goals

What comes next for you after retirement? Do you want to travel extensively, move closer to family, or start a small business? Your goals will dictate the resources you need and the flexibility your plan should allow. If your dream lifestyle is higher cost or involves seasonal living, your income and withdrawal strategy will need to support it.

5. Family Responsibilities

Many retirees today are part of the “sandwich generation” — supporting adult children while also helping aging parents. These responsibilities can influence both the timing and the structure of retirement, sometimes delaying full retirement or prompting phased approaches.

 

The Case for a Values-Based Retirement Plan

Retirement planning works best when it starts with vision and values, not just numbers. At Guiding Wealth, we help clients identify why they want to retire, how they want to spend their time, and what really matters most before we ever discuss the exact date.

A values-based retirement plan:

  • Aligns spending with your priorities and purpose
  • Builds flexibility for life changes (health shifts, market swings, family needs)
  • Reduces the risk of running out of money or regretting the timing of your retirement
  • Ensures your financial decisions support the life you want—not just the one a spreadsheet assumes

All of this to say: The “right” age to retire isn’t 62, 65, or 70. It’s the age when you’re financially secure, healthy enough to enjoy your plans, and confident that your next chapter will be both fulfilling and sustainable.

Retirement is a when and a why — not just a number. If you’re starting to think about your timeline, we can help you create a plan that’s driven by your goals, values, and vision for the future, not arbitrary milestones.

Schedule a conversation with us to start mapping your retirement age on your terms.