Retired Too Soon? Why 58% of Americans Are Calling It Quits Earlier Than Planned

A majority of Americans are retiring earlier than expected, according to a study by the Transamerica Center for Retirement Studies. The research shows that 58% of workers retire prematurely, with health problems, job disruptions, and family obligations driving the trend. The findings underscore the difficulties of achieving financial security in retirement when circumstances force an early exit from the workforce.

The median retirement age in the U.S. is 62, falling short of the traditional benchmark of 65. Catherine Collinson, president of the Transamerica Institute, emphasizes the profound impact of losing additional working years. "Five or ten more years in the workforce can make a critical difference in securing retirement stability," she said.

Health and Employment Issues Lead Causes

Health-related concerns dominate the reasons for early retirement, affecting nearly half (46%) of those surveyed. Disabilities and chronic illnesses are significant contributors. Employment challenges are another key factor, cited by 43% of respondents. These include layoffs, company restructuring, and retirement buyouts.

Family responsibilities, including caregiving, compel 20% of early retirees to leave their jobs. Interestingly, only 21% retired early due to financial readiness, highlighting how unplanned retirements often stem from external pressures rather than choice.

Financial Consequences of Early Retirement

Retiring early can have severe financial implications. Workers leaving the workforce before their full retirement age—66 or 67, depending on their birth year—face reduced Social Security benefits. The median age for claiming these benefits is 64, well before the maximum benefit age of 70.

Collinson warns that early retirees miss out on more than income. They forgo years of employer-sponsored retirement contributions, lose potential investment growth, and face steep healthcare costs before Medicare eligibility at 65.

Tips to Mitigate Risks

Experts advise workers to proactively plan for potential early retirement. Maintaining good health, upgrading job skills, and expanding professional networks are essential strategies to extend working years. For those already retired, financial advisors can help reassess goals and explore options, such as part-time work or delaying Social Security claims.

Michael Carbone, a certified financial planner, acknowledges the stress that forces some into early retirement but stresses the importance of planning. "With a solid strategy, retirees can still achieve financial stability and a fulfilling life," he said, as reported by Financial Planning.

Collinson agrees, emphasizing the need for knowledge and preparation. "Engaging in financial planning and understanding options can positively impact retirees' financial health, even after retirement," she told

Early retirement, while challenging, can lead to rewarding outcomes with careful preparation and informed decision-making.