Expected vs. Actual Retirement Age

One of the more interesting findings in EBRI's annual Retirement Confidence Survey (RCS) is that there is a disconnect between when individuals expect to retire and when they actually retire. EBRI has been tracking this for over two decades. Back in 1991, only 11% of workers thought that they would retire after age 65.Today, one in three (33%) expect to retire after age 65 and 10% don't expect to retire at all. Those expecting to retire before age 65 declined from 50% in 1991 to 27% in 2014. Despite this expectation, the actual median retirement age has stayed relatively stable at 65 throughout the 1991-2014 period. The primary reasons cited for the changing expectations are the poor economy, inability to afford retirement, and a change in employment status. Many retirees left the workforce earlier than expected due to negative reasons such as health problems or disability, as well as for financial reasons.


The major implication of these findings is that individuals will need ways to overcome shortfalls that result from longer life expectancies measured up against fewer savings years. Although people think that they will work longer, that doesn't appear to be the reality.