A recent survey by financial services firm Empower reveals that Americans, on average, consider 58 the ideal retirement age.

This preference for earlier retirement contrasts sharply with financial realities, as advisors warn that insufficient planning could lead to significant financial shortfalls. The survey of 1,001 adults highlights the gap between retirement aspirations and practical preparedness.

Data from the Transamerica Center for Retirement Studies shows 58% of Americans actually retire earlier than planned, primarily due to health issues (46%) or employment changes (43%). Only 21% retire early because they achieve financial stability.

This discrepancy between planned and actual retirement ages underscores the unpredictability of workforce departure timing.

Financial experts emphasize critical considerations for early retirement, particularly healthcare coverage before Medicare eligibility begins at 65.

Advisors also stress the importance of building robust savings to withstand market downturns and inflation. CNBC Financial Advisor Council member Carolyn McClanahan notes that retiring too early without adequate preparation risks depleting resources prematurely.

Working longer significantly improves retirement security according to T. Rowe Price analysis. Their research shows delaying retirement from 62 to 65 increases the probability of not outliving savings from 64% to 92% for a typical earner with $900,000 saved. This dramatic improvement demonstrates the power of additional earning and compounding years.

Some individuals adopt semi-retirement strategies, reducing hours in less demanding roles rather than fully leaving the workforce.

This approach provides both purpose and supplemental income while allowing savings to continue growing.

Financial planners recommend personalized retirement strategies based on individual circumstances rather than arbitrary age targets, considering factors like health, savings adequacy, and lifestyle goals.

Source: CNBC