For many Americans, retiring in their early 60s seems ideal, especially since Social Security benefits are available starting at 62, close to the average retirement age. However, financial experts warn that retiring too early can lead to serious challenges. Early retirement often results in smaller Social Security payments, higher healthcare costs before Medicare eligibility at 65, and the risk of outliving retirement savings. The MassMutual Retirement Happiness Study highlights that many retirees are underprepared financially, with a significant portion worried about running out of money. Waiting until 65 to 67 can provide higher benefits, access to Medicare, and additional years to grow savings, making retirement more secure and allowing Americans to enjoy their post-work years without financial stress.

Why 63 is often seen as the “perfect” retirement age

The 2024 MassMutual Retirement Happiness Study reveals that many Americans nearing retirement believe age 63 is optimal. The study explores how prepared Americans feel for retirement, the gap between expectations and reality, and the role of finances, health, and lifestyle in shaping overall retirement happiness.Despite this perception, many soon-to-be retirees face financial shortfalls. About 35% report that they are behind on their savings goals, and over a third worry they might run out of money in their lifetime. Even among those already retired, 22% share this concern. These figures highlight that the widely believed “ideal” age may not account for financial realities.

Hidden dangers of retiring too soon revealed

Reduced social security benefitsThe Social Security Administration warns that claiming benefits at 62 can reduce monthly payouts by up to 30% compared to waiting until full retirement age, which is usually 67. This reduction can significantly affect long-term financial security, leaving retirees with less money for daily living and unexpected expenses.Higher healthcare costs before medicareHealthcare is a major factor in retirement planning. Medicare coverage begins at age 65. Retirees who leave work before this milestone must rely on private insurance, which is often costly. For someone retiring at 62, this gap can cost thousands of dollars annually, putting additional strain on retirement savings.Planning for longevityWith US life expectancy averaging 78.4 years—and many living into their 80s or 90s—retirees who leave the workforce early may need to plan for 25 to 30 years of living expenses. Without sufficient savings, this long retirement period can lead to financial stress in later years.

Best age to retire according to experts

According to the study, Pew Research Center analysis, published in March 2025, draws from a survey of 3,600 US adults aged 18 and older conducted in 2024. It examines public opinion on the “best ages” for major life milestones, including marriage, parenthood, home ownership, and retirement. For retirement specifically, most Americans pointed to age 65 as the ideal time to leave the workforce. The report highlights generational differences in these views and compares public perceptions with actual eligibility ages for benefits like Social Security and Medicare, offering insight into how Americans balance cultural expectations with economic realities.Considering factors such as income, healthcare, and Social Security benefits, financial experts recommend retiring between 65 and 67. Retiring at this age provides multiple advantages:

While retirement is ultimately a personal decision, waiting a few extra years can offer critical financial security for those concerned about long-term planning.Retirement is not just about quitting your job; it’s about securing the lifestyle you want for the decades ahead. Although early retirement in the early 60s may seem appealing, delaying until 65 or 67 often provides the financial stability and peace of mind necessary to truly enjoy this stage of life.Also Read | US H-1B Visa vs. China K Visa: Key differences, eligibility, benefits, and global career opportunities for STEM professionals