Jul 27, 2026
Follow us on Google for more Moneywise news
Add us on Google
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
For most Americans, the ideal age for retirement is somewhere around their mid-60s. As of 2024, men retired by the average age of 64.6 while women retired by age 62.6 on average, according to the Center for Retirement Research at Boston College.
This seems reasonable when you consider factors such as Medicare eligibility (age 65), Full Retirement Age for Social Security (age 67) or even life expectancy (79 years, per the CDC). Someone who retires at age 65 could reasonably assume a 14-year retirement.
Advertisement
Thanks for subscribing!
Retire on your terms — we'll show you how.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
However, this framework for retirement planning misses one important element. And it could become a hidden cost in your final chapter. Here’s a closer look at why retiring at age 65 could be a mistake for millions of Americans.
Healthy life expectancy
Although total life expectancy is at 79 years, health-adjusted life expectancy is far lower: just 66.2 years, according to a Lancet health study. The World Health Organization’s estimate is even lower, at just 63.9 years.
Simply put, retiring at age 65 means you have roughly one or two years of full health left. Beyond this point, your strength and energy will gradually decline while the odds of managing a chronic condition climb sharply.
For those looking to enjoy retirement, delaying the move until this age could be a big mistake. And this mistake also has financial consequences.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Ignoring health can be expensive
Ignoring the gap between how long you will live and how well you will live could have long-term consequences for your finances. Your retirement planning may have been focused on long-haul flights to Peru or weekend hikes, but in reality you could be spending more time and money in the clinic.
There’s also a chance you need long-term care, which can truly derail your finances if you’ve neglected this possibility. According to Milliman’s 2025 Long-Term Care Index, the typical 65-year-old should set aside roughly $135,000 for their future high-intensity long-term care needs. For many retirees, that’s a meaningful chunk of their nest egg.
What can you do?
Setting aside six figures to deal with health issues is certainly sound financial planning. But that’s not the only way to mitigate this risk.
Advertisement
Long-term care insurance, for instance, can help you deal with this risk in a cost-effective way. These policies generally cover the costs of in-home assistance, nursing homes or assisted living facilities.
Without proper planning, paying for long-term care could deplete your retirement fund faster than you expect. In many cases, the burden of paying for care often falls on family members — potentially straining their own finances.
GoldenCare offers different options based on your needs, including hybrid life or annuity with long-term care benefits, short-term care, extended care, home health care, assisted living and traditional long-term care insurance.
For those with substantial assets, hiring a professional advisor can also help you plan for future health and medical needs. If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.
Advertisement
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.
From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
