Is 63 the ideal age of retirement Americans think it is? Probably not — here’s why

Clay Halton and Vishesh Raisinghani

Sun, September 20, 2026 at 3:45 PM GMT+3 9 min read

Photo by Chokniti-Studio / Shutterstock

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Age 63 has emerged as something of a retirement sweet spot for Americans — at least in theory.

According to the 2024 MassMutual Retirement Happiness Study, retirees and pre-retirees identified 63 as the ideal age to leave the workforce (1). It's easy to understand the appeal: You're still relatively young, you've had decades to build your savings and you're already eligible to claim Social Security.

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But 63 also falls awkwardly between several important retirement milestones — and leaving work at that age could mean accepting a permanently smaller Social Security check, paying for health coverage before Medicare kicks in and asking your savings to support you for potentially three decades.

That makes the age Americans want to retire very different from the age that may put them in the strongest financial position.

Why retiring at 63 may be harder than it sounds

For Generation X, the first members of which are now entering their 60s, the challenge is particularly pressing.

A 2025 report from the Life Insurance Marketing and Research Association (LIMRA)'s Retirement Income Institute warned that Gen X could be "entering retirement less secure than any generation before them (2)." Women in this age group had median retirement savings of just $6,000 and men had $13,000, while only 14% had access to traditional pensions.

The concerns extend beyond Gen X.

More than a third of pre-retirees (35%) told MassMutual their savings were below where they needed to be to retire comfortably at their ideal age (1). Another 34% said there was a decent chance they could outlive their savings, a concern shared by 22% of retirees.

And Americans believe they'll need a sizable nest egg to feel comfortable. Northwestern Mutual found that Americans thought they needed $1.46 million to retire comfortably (3), while nearly half worried about outliving their savings.

That makes 63 less of a "magic number" than one piece of a much larger calculation.

Three ages that can change your retirement math

One of the biggest considerations is Social Security.

Although benefits can generally be claimed beginning at 62, doing so comes at a cost. For someone whose full retirement age is 67, claiming at 62 can reduce their monthly benefit by about 30%, according to the Social Security Administration (4).

That reduction matters because Social Security remains a critical source of retirement income. AARP reports that about 12% of men and 15% of women rely on Social Security for 90% or more of their income (5).

Waiting until 67 allows workers born in 1960 or later to reach full retirement age and receive 100% of the benefit they've earned. Waiting even longer can increase monthly benefits further, with delayed retirement credits available until age 70.

Then there's 65.

That's when most Americans become eligible for Medicare (7). Someone who leaves work at 62 or 63 may therefore have to bridge a multiyear gap without employer-sponsored health coverage before Medicare kicks in.

Put those milestones together and the years from age 65 to 67 can look considerably different from 63: Medicare eligibility has arrived, workers have had additional time to save and invest and they're much closer to (or have reached) full Social Security retirement age.

Your money may need to last for decades

The other side of the retirement equation is how long that money has to last.

Overall U.S. life expectancy was 79 years as of 2024, according to the Centers for Disease Control and Prevention (8). But averages only tell part of the story. Depending on factors including sex, birth date and location, an individual American's life expectancy can stretch well into their 80s or 90s, according to the Yale School of Public Health (9).

Someone retiring in their early 60s may therefore need to finance 25 years, or even 30 years, without a paycheck.

At the same time, Social Security faces its own long-term funding challenges. The program's trustees have warned that its trust funds will eventually be unable to pay all scheduled benefits without congressional action.

Social Security Administration chief actuary Karen Glenn has also warned that changes under the One Big Beautiful Bill Act could accelerate depletion of the Old-Age and Survivors Insurance (OASI) Trust Fund, potentially pushing it into the fourth quarter of 2032 (6).

None of this necessarily means everyone should work until 67. Someone with substantial savings, a pension or other income may be perfectly positioned to retire earlier. Health problems, caregiving responsibilities and job circumstances can make an earlier exit necessary as well.

But it does mean 63 isn't automatically the best retirement age simply because it's the age many Americans prefer. For someone approaching retirement, the more important question is whether their savings, investments, Social Security strategy, health care costs and expected spending can support the years ahead.

Here are a few ways to do that.

Put your retirement plan to the test

Before deciding when to hand in your notice, getting a clearer picture of how all those pieces fit together can help you determine whether your retirement plan is ready. After all, knowing how much you'll actually need in retirement is half the battle.

Even if you've built a solid nest egg, it's smart to check whether your savings will stretch as far as you think.

That's where professional guidance can help. An advisor can look across your financial picture and help determine whether your current strategy is putting you on track for the retirement you want.

With Vanguard, you can connect with a personal advisor who can help assess how you're doing so far and make sure you've got the right portfolio to meet your goals on time.

Vanguard's hybrid advisory system combines advice from professional advisors and automated portfolio management to make sure your investments are working to achieve your financial goals.

All you have to do is fill out a brief questionnaire about your financial goals and Vanguard's advisors will help you set a tailored plan and stick to it.

Other ways to boost your retirement

Once you have a clearer idea of what retirement could look like, the next step is making sure the money you've already set aside is working for you.

Keeping some savings accessible can be especially important as you approach retirement, when an unexpected expense could otherwise force you to pull money from your investments at an inconvenient time.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.55% through program banks, and new, referred clients can get an extra 1.00% boost with the direct deposit incentive for a total variable APY of 4.55%.

That's over 10 times the national deposit savings rate, according to the FDIC's August report.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

Find more room in your budget

Growing the savings you already have is one part of the equation. Finding more money to put toward retirement can help, too.

That doesn't necessarily require a dramatic lifestyle change. Taking a closer look at your everyday spending could reveal expenses you no longer need — and money that could instead go toward your retirement goals.

A quick daily check-in of your accounts can show you exactly where your money is going.

An app like ⁠Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.

This can help you cut unnecessary costs and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.

⁠Rocket Money's intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.

Add some predictability to your retirement savings

As you build your savings, there's another challenge to consider: how much of your nest egg you want exposed to the ups and downs of the market as retirement gets closer.

Keeping some money in an option that offers a guaranteed return can provide a way to grow your retirement savings without taking on additional market risk.

One option some retirees use to grow savings without market risk is a fixed annuity. In exchange for a lump-sum deposit, an insurance company guarantees a fixed rate of return for a set term, similar to a certificate of deposit (CD) but often with a higher rate.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see oureditorial ethics and guidelines.

MassMutual (); Life Insurance Marketing and Research Association (); Northwestern Mutual (); Social Security Administration (); AARP (); American Society of Pension Professionals & Actuaries (); Medicare.gov (); U.S. Centers for Disease Control and Prevention (); Yale School of Public Health ()

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.