What was the retirement age in 1920? A look back at senior care and history

With a U.S. life expectancy around 54 years in 1920, the concept of a fixed retirement age was largely absent for the majority of the population. This raises the question, what was the retirement age in 1920?

Quick Summary

The vast majority of Americans had no official retirement age in 1920; they worked as long as possible, relying on family, savings, or charity when they could no longer earn a living. Only a small fraction of workers, like some federal employees, were covered by early, rudimentary pension plans.

Key Points

• No Universal Age: In 1920, there was no mandated retirement age for the general population; most people worked until they were physically unable to continue [1, 3].

• Family Support Was Key: The primary safety net for the elderly was the family, with adult children often taking in and caring for their aging parents [1, 4].

• Limited Pension Coverage: Only a small fraction of workers, such as federal civil service employees, were covered by rudimentary pension plans [1, 2, 6].

• Almshouses as a Last Resort: For the poor and unsupported, almshouses (poorhouses) were the only option, providing substandard care and carrying a heavy social stigma [1, 4].

• Social Security Changed Everything: The passage of the Social Security Act in 1935 created the first nationwide, universal retirement system, establishing a standard age and providing a financial foundation for modern retirement [1, 6].

• Lower Life Expectancy: In 1920, the average life expectancy was around 54 years, meaning living to a traditional retirement age was not a reality for many Americans [1, 5].

The Non-Existence of a Universal Retirement Age

For the average American worker in 1920, the idea of a fixed retirement age, like the 65 or 67 we know today, simply did not exist [1, 3]. Most people worked for as long as their health and physical ability allowed [1, 3]. There was no widespread federal program like Social Security to provide a financial safety net for old age [1, 6]. The economy was largely agrarian and industrial, and the physically demanding nature of most labor meant many simply could not work into their later years.

The Civil Service Retirement Act of 1920: A Rare Exception

While no universal standard existed, a small number of workers were an exception. The Civil Service Retirement Act, passed on August 1, 1920, established a retirement system for federal employees, often with eligibility at age 65 [1, 2, 6].

Key provisions included:

• Letter carriers and clerks were eligible for benefits at age 65 [1, 2, 6].
• This was an early example of a government-backed pension plan for non-military personnel [1, 2, 6].
• However, it covered a tiny fraction of the total U.S. workforce [1, 2, 6].

Life Before Social Security: The Reality of Senior Care

Before the 1935 Social Security Act, support for the elderly was different and often precarious [1, 4, 6]. With a significantly lower life expectancy (around 54 years) [1, 5], many did not live to old age. For those who did, their fate depended on their financial standing and familial support [1, 4].

• Family Care: The primary support was family, with elderly parents often living with and relying on adult children [1, 4].
• Private Charity: Private charities offered limited assistance for those without family support [1, 4].
• Almshouses and Poorhouses: Destitute elderly might go to almshouses, public institutions providing basic, often inadequate, care with significant stigma [1, 4].

The Impact of Early Pensions and State Aid

Early state old-age pension plans also began appearing, with around 30 states having needs-based plans by 1934 [1, 6]. These were typically welfare programs with strict eligibility and low benefits [1, 6]. The inadequacy of these programs and the Great Depression were key factors leading to the Social Security Act of 1935 [1, 6].

A Tale of Two Eras: Retirement in 1920 vs. Today

A comparison highlights the dramatic shift in senior life [1, 3]:

Feature	Retirement in 1920	Retirement Today
Defined Age	None for most; determined by physical ability.	A standard age, like 65-67, for Social Security and many employer plans.
Financial Support	Family, savings (if any), private charity, or almshouses.	Social Security, 401(k)s, IRAs, pensions, and personal savings.
Care System	Primarily family-based, supplemented by low-quality institutional care for the poor.	A wide array of options including home health care, assisted living, and nursing homes.
Life Expectancy	Around 54 years for the average American.	Around 76-78 years, allowing for a much longer retirement period.
Expectations	Continued labor, often until physical incapacity; little to no leisure.	An expected phase of life with financial security and leisure opportunities.

The Path to Modern Retirement

1. Before 1920: Care for the elderly was family and community responsibility, with almshouses for the poor [1, 4].
2. 1920: The Civil Service Retirement Act provides the first federal pension for limited government workers [1, 2, 6].
3. 1920s: Industrialization and some private pensions emerge, gradually shifting away from full reliance on family or charity [1, 3].
4. 1933: The Townsend Plan proposes federal pensions for those over 60, building support for reform [1, 6].
5. 1935: The Social Security Act establishes a federal old-age insurance program with benefits starting at age 65, fundamentally changing retirement [1, 2, 6].
6. Post-1935: Social Security establishes a defined retirement period with reliable income, altering senior care and financial planning [1, 6].

For most in 1920, funded retirement was foreign. Social Security, increased longevity, and financial sophistication created the modern framework. To explore the foundational law, visit the official Social Security Act of 1935 page.

Frequently Asked Questions

Did private pensions exist in 1920?

Yes, some private companies, particularly in the railroad, oil, and banking sectors, began offering pensions to their employees in the early 1920s, though coverage was limited and plans were often discretionary [1, 3].

What was the average life expectancy in 1920?

According to the Centers for Disease Control and Prevention, the life expectancy for Americans in 1920 was approximately 53.6 years for males and 54.6 years for females [1, 5].

How did seniors finance their lives without Social Security?

Seniors relied on a patchwork of support systems including personal savings, family assistance, private charity, or, as a last resort, public almshouses. Financial security was not guaranteed for most [1, 4].

When did the Social Security Act pass?

The Social Security Act was signed into law on August 14, 1935, and established a system of federal old-age benefits for workers [1, 6].

Why did the retirement age become standardized at 65?

When the Social Security Act was created in 1935, age 65 was chosen based on pragmatic considerations, including actuarial studies and observation of prevailing practices in early pension and state plans [1, 2].

Were all federal employees covered by the 1920 act?

No, the Civil Service Retirement Act of 1920 only covered certain classified civil service employees, not all federal workers. Coverage was expanded in later years [1, 2, 6].

How did the Great Depression affect retirement?

The Great Depression exposed the fragility of existing support systems, as many lost their life savings. This crisis highlighted the need for a national system and was a catalyst for the creation of Social Security [1, 6].