Why 63 may not be the best retirement age for Americans
A MassMutual study found 63 was the preferred retirement age, but Social Security, healthcare costs and longevity can make the timing financially challenging.
Age 63 may be a popular retirement target for Americans, but it is not necessarily the point at which their finances are strongest. An analysis published by Yahoo Finance says workers should weigh savings, investments, healthcare costs, spending needs and Social Security timing before treating 63 as a universal goal.
The 2024 MassMutual Retirement Happiness Study identified 63 as the ideal retirement age among surveyed retirees and pre-retirees. Yet 35% of pre-retirees said their savings were below the level needed for a comfortable retirement at their preferred age, while 34% believed there was a reasonable chance they could outlive their savings.
Social Security can generally be claimed from age 62, but claiming before full retirement age can permanently reduce monthly benefits. For people born in 1960 or later, full retirement age is generally 67. Delaying benefits can increase monthly payments until age 70.
Retiring at 63 can also leave workers paying for health coverage before Medicare eligibility generally begins at 65. That gap, combined with a longer period without employment income, may require savings to support 25 or 30 years of retirement.
The issue may be especially pressing for Generation X. A 2025 report from LIMRA’s Retirement Income Institute warned that the generation could enter retirement with unusually weak financial security. The analysis also cited long-term funding pressures facing Social Security.
An earlier retirement may still be suitable for people with substantial savings, pensions or other income, or for those facing health, caregiving or employment pressures. The central question is whether an individual’s resources and expected spending can support the years ahead.
