Over Half of Retirees Leave Workforce Earlier Than Expected and Wish They’d Saved More

More than half of American retirees leave the workforce earlier than planned, often regretting inadequate savings.

A TIAA Institute report released July 22 surveyed 1,591 adults aged 22 to 75, revealing that 52% of retirees retired earlier than expected, with an average actual retirement age of 57 compared to the 62 years workers anticipate. This discrepancy underscores the structural challenge of preparing for longer retirements and the urgency of more aggressive saving.

The report highlights that early retirement often results from health issues, caregiving, layoffs, or technological displacement, factors that can abruptly shorten working years and stretch retirement funding needs. While 70% of workers have access to 401(k)-type plans and 89% of those with access are enrolled, automatic enrollment—already covering 60% of workplace savers—is set to expand in 2025, potentially improving savings behavior. Contribution limits will also rise in 2026, with catch-up contributions increasing for those aged 50 to 63. Surya Kolluri, head of the TIAA Institute, advocates planning for multiple retirement scenarios at ages 57, 62, and 65 to address these uncertainties.

Starting in 2025, new 401(k) plans must automatically enroll employees, reinforcing a structural shift toward greater retirement preparedness.

Montana workers might find these findings relevant, as factors like job displacement or caregiving demands could be concerns in some areas. The necessity to plan for earlier and potentially longer retirements might resonate in Montana, where some residents may face challenges accessing financial advice and diversified savings options.

Many Americans retire earlier than planned. They have regrets
By Daniel de Visé, USA TODAY