Retirement planning trends show workers often exit workforce earlier than expected

A recent survey by the Employee Benefit Research Institute and Greenwald Research reveals a discrepancy between planned and actual retirement ages. While workers expect to retire at a median age of 65, actual retirees report leaving the workforce at a median age of 62.

Nearly half of retirees left their jobs earlier than anticipated. Among those who retired early, 41% cited hardships such as illness, while 35% attributed the change to organizational shifts at their workplace. Conversely, 36% of respondents indicated they retired early because they could afford to do so.

Financial experts suggest that planning for a longer lifespan is critical to avoid outliving savings. Stress-testing retirement plans against ages such as 90, 95, or 100 can help reveal risks, as personal expectations of longevity often fail to account for the financial requirements of an unexpectedly long retirement.