Social Security

Average Retirement Age in the United States (2020)

The average retirement age in the United States varies from state to state. There is a general pattern whereby average age of retirement tends to correlate with cost of living as well as with patterns of employment and unemployment.

Michael Schultheiss

Michael Schultheiss

Published July 31st, 2020

Key Takeaways

1. Average age of retirement varies from state to state.

2. States with higher costs of living have higher or later average retirement ages; states with lower costs of living have lower, or earlier, average retirement ages.

3. Whatever state you live in, full retirement age for Social Security and age of Medicare eligibility will be the same.

The average retirement age in the United States varies from state to state. As we will see, there is a general pattern whereby average age of retirement tends to correlate with cost of living as well as with patterns of employment and unemployment.

Whatever the average age of retirement in your state, it is important to understand that the federal Social Security rules for full retirement age (FRA) are exactly that – federal – and apply equally to all states. Waiting until you reach your FRA to retire, as opposed to taking an early retirement, will help you to make the most of your Social Security and other retirement benefits.

It is a good idea to plan your retirement based on a sound understanding of your personal finances, and that is where a Certified Financial Planner® can help you out. Regardless of what state you live in, talking to a Certified Financial Planner® will provide you with a source of professional guidance and advice for your retirement planning.

Retirement Age Varies by State

The average retirement age in the USA varies from state to state. There is, however, a clear and discernible pattern: retirement age is positively correlated with cost of living.

What this means is that in states with a higher cost of living, the average age of retirement is higher. New England, a region with high cost of living and high age of retirement, is a particularly good example.

In states with a lower cost of living, the retirement age is lower.

There is another, related pattern that also helps to explain the lower retirement ages in some states compared with others. In those states that have high unemployment, the age of retirement is actually lower, not higher, because some people cannot find work and must retire sooner than they had expected to.

This is the pattern in the Appalachian states, a region characterized by high unemployment and particularly early retirement.


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Michael Schultheiss
Michael Schultheiss

Michael Schultheiss is a freelance copywriter of long-form content and other marketing communications (B2B and B2C) in the financial services and FinTech niches. In copywriting, he looks for hungry crowds. Other interests include health, fitness, and reading and writing fiction.

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Michael Schultheiss
Michael Schultheiss

Michael Schultheiss is a freelance copywriter of long-form content and other marketing communications (B2B and B2C) in the financial services and FinTech niches. In copywriting, he looks for hungry crowds. Other interests include health, fitness, and reading and writing fiction.

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To empower a confident, worry-free retirement for everyone.

Legal

Retirable, Inc. ('Retirable') is an SEC registered investment advisor. By using this website, you accept our Terms and Conditions and Privacy Policy. Retirable provides holistic retirement planning services, which are available only to residents of the United States. You must be at least 18 years of age to become a Retirable Premium user. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.

Investing involves risk and past performance is not indicative of future results. Increased spending increases the risk of depleting your savings and performance is not guaranteed. It is very important to do your own analysis before making any decisions based on your own personal circumstances.

For more information, see our Form ADV Part II and other disclosures.

Retirable is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The Retirable Business Visa® Debit Card is issued Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC. Pass-through insurance coverage is subject to conditions.

Your deposits qualify up to a maximum of $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program athttps://thread.bank/sweep-disclosure/ and a list of program banks athttps://thread.bank/program-banks/. Please contact [email protected] with questions on the sweep program.

* The interest rate on Retirable Consumer Deposit Account Tier 2 is 3.23% with Annual Percentage Yield (APY) of 3.27%. The interest rates are accurate as ofNov 8, 2024. Rate is variable and is subject to change after account opening. Fees may reduce earnings.

** Refer to the fee schedule in your Consumer Deposit Account Agreement

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