The Odds of Reaching Age 65
While it’s a common misconception that many people die before ever reaching retirement, statistics from authoritative sources tell a more optimistic, yet nuanced, story. The odds of a person living to a traditional retirement age of 65 have steadily improved over the decades due to advances in medicine and public health. However, these odds differ significantly based on factors such as gender and education level. For example, a 2018 study highlighted by the National Institutes of Health noted that, on average, the probability of a person dying without ever retiring was around 15% for men and below 10% for women. These figures are partly a reflection of historical gender-based mortality and employment rates.
Life Expectancy at Retirement Age vs. At Birth
It is crucial to differentiate between life expectancy at birth and life expectancy once a person has already reached an older age. The headline figures for life expectancy that we often see in the news are calculated for a newborn baby and factor in deaths at all ages. If a person has already reached age 65, their life expectancy increases considerably because they have survived the risks associated with childhood, adolescence, and early adulthood. For instance, TIAA notes that a person who has reached age 65 can expect to live well into their 80s on average, with a significant portion living even longer. Fifty percent of people who reach 65 will live longer than the average life expectancy for their age cohort, a concept known as "longevity risk."
Financial Preparedness vs. Longevity
Beyond the biological reality of living long enough to reach retirement, the true challenge for many is being financially prepared to stop working. A 2025 survey by Empower found that while nearly half of Americans feel or felt financially prepared for retirement, there are generational gaps, with a lower percentage of younger adults feeling prepared. Financial uncertainty, inflation, and a fear of outliving savings are major concerns that can influence retirement timing. These worries can cause people to delay retirement, even if they are physically able to stop working.
Key Factors That Influence Your Retirement Outcome
Several factors determine a person's ability to live to and comfortably enjoy their retirement. These aren't just about luck, but a combination of long-term choices and socioeconomic circumstances.
- Health and Wellness: Health issues are a leading cause of unplanned early retirement. A 2022 AARP study found that health problems were the most common reason for retiring earlier than desired (44%). Maintaining good physical and mental health is not only crucial for enjoying life but for having control over your retirement timeline.
- Financial Security: Adequate savings, investments, and understanding retirement benefits like Social Security are fundamental. As the RAND Corporation has highlighted, there are large disparities in financial preparedness based on education and marital status. Lower-income individuals are more likely to face financial hardships in retirement.
- Socioeconomic Status and Education: Higher levels of education are strongly correlated with better health, higher wages, and greater financial preparedness. The RAND study found that while 89% of college-educated married individuals are adequately prepared for retirement, this drops to only 70% for those without a high school education.
- Work-Related Factors: A challenging work environment, physical strain, or a sudden layoff can all be catalysts for an unexpected retirement. Some workers may retire early due to burnout, while others are forced out of the workforce due to job loss.
Comparing Retirement Expectations and Reality
Expectations about retirement often differ significantly from the reality. Research consistently shows that the average actual retirement age is lower than the average anticipated retirement age. This discrepancy is often due to unforeseen circumstances, with health issues and layoffs being common culprits.
| Aspect | Anticipated Retirement (Ages 50+) | Actual Retirement (Ages 50+) |
|---|---|---|
| Average Age | 66 | 62 |
| Reason for Retiring | On their own terms, financially ready | Health issues (44%), layoffs (19%) |
| Outlook on Experience | Focus on leisure and hobbies | Mental well-being impacted by loss of control |
Planning for a Long and Healthy Retirement
Whether you plan to retire early or work into your later years, taking proactive steps can significantly increase your chances of a successful and fulfilling retirement. These actions address both the longevity and financial aspects of the journey.
- Prioritize Your Health: Regular exercise, a balanced diet, adequate sleep, and managing stress are foundational. Consistent check-ups and preventative care are also vital, as is managing chronic conditions effectively.
- Save Early and Consistently: Time is one of the most powerful tools for retirement savings. Start contributing to a 401(k), IRA, or other investment vehicles as early as possible to take advantage of compound interest. Even small, consistent contributions can add up significantly over time.
- Create a Comprehensive Financial Plan: Work with a financial advisor to create a realistic budget for retirement. This plan should factor in potential expenses, inflation, and healthcare costs, which can rise significantly with age. For further guidance, consider resources like those offered by the National Institute on Aging.
- Explore Options for Healthcare: Understand Medicare eligibility and coverage, and consider the costs of supplemental insurance. Health Savings Accounts (HSAs) can be another powerful tool for saving for future medical expenses on a tax-advantaged basis.
- Stay Mentally and Socially Engaged: Retirement offers an opportunity to pursue new interests and reconnect with family and friends. Staying socially connected and mentally active by volunteering, taking classes, or picking up new hobbies can improve both mental and emotional well-being.
- Consider Semi-Retirement: If full retirement seems out of reach or unappealing, consider a phased approach. Working part-time in a less stressful role can provide supplemental income, purpose, and a sense of routine while freeing up time for leisure.
Conclusion
The question of "what percentage of people live to see retirement?" reveals a complex intersection of health, finance, and societal trends. While the statistical odds of surviving to retirement age are high, the ability to do so comfortably is far from universal. Disparities in health, education, and financial resources create significant challenges. By focusing on both longevity and financial planning, individuals can take greater control of their destiny and work toward a long, healthy, and financially secure retirement.
