The Myth of Early Retirement: Why Most People Are Working Longer Than Ever

Are people really retiring earlier than they used to?

You may have seen some articles lately claiming that people are retiring earlier than they used to, citing COVID-19 as a reason for wanting to enjoy life more and escape the 9-to-5 grind. Some of these articles may also suggest that some retirees are part of the baby boomer generation and need to take care of their aging parents or other family members. These stories may sound plausible and appealing, especially in the context of the current labor shortage. However, when you look at the actual data, you may find that these claims are not exactly true.

According to a CNBC study, the average expected retirement age among nonretirees has increased from 60 in 1995 to 66 in 2021. Similarly, the average retirement age among retirees has risen from 57 in the 1990s to 61 in 2021. Moreover, the percentage of adults aged 55 to 74 who are retired has been declining over the years.

So, next time you see an article that makes you feel like you are missing out or falling behind on your retirement plans, don’t worry too much. Many of these articles are based on anecdotal evidence and selective interviews, rather than solid research and statistics. You may be doing better than you think.