What’s a ‘normal’ age to retire? Americans can’t decide between these 4 milestones — the wrong call could cost you thousands

You can still start Medicare at 65. But for anyone born after 1960, your full retirement age, as defined by the government, is actually 67. You can claim Social Security as early as age 62 or wait until age 70.

Few Americans have traditional pensions anymore. That’s transitioned to workplace retirement savings plans and you can start withdrawing from those account (without facing a steep penalty) at age 59 ½.

So there’s no longer a “normal” retirement age. But there are four milestones to consider — and the wrong call could cost you. Here’s what you need to consider when deciding when to retire.

Why the new normal is no normal

Some people need to keep working because they don’t have enough savings to retire. Indeed, 72% of respondents in NFP’s 2026 U.S. Retirement Trend Report say they’re off track in meeting their retirement savings goals.

On the other hand, some people want to keep working because retirement sounds boring or perhaps a bit lonely.

Many workers are forced to retire earlier than planned for a variety of reasons, whether they’ve been laid off or are facing a health issue that makes it difficult to work.

The 2026 Retirement Confidence Survey (RCS) from the Employee Benefit Research Institute found that while 30% of those aged 25 to 34 expect to retire before 60, 42% of those aged 45 to 54 expect to retire at 70 or older — or not at all.

Considering that the average life expectancy in the U.S. is 79 (81.4 for women and 76.5 for men), choosing when to retire — and ensuring you have enough saved to last throughout your golden years — is a critical decision.

62 years old

The median age of retirement is around age 62, according to the Annual Transamerica Retirement Survey. Of those who retired sooner than planned, nearly half said they did so because of employment reasons, such as organizational changes, job loss, job unhappiness and retirement incentives or buyouts.

But four in 10 of those who retired sooner than planned did so because of health reasons, such as a disability or illness. Notably, though, only one in four (24%) retired because they were financially able to do so.

At age 62, you can claim your Social Security retirement benefit, although you’ll receive a 30% permanent reduction in your monthly check (or 70% of your full calculated benefit).

If you’re still working while collecting at 62, even if it’s part-time or gig work, you’ll be subject to Social Security’s earnings tests. In 2026, if you earn more than $24,480, then $1 in Social Security is withheld for every $2 of earnings above that amount.

Your checks will be boosted once you reach full retirement age, but that leaves five years where you might receive less than you were expecting.

You’re also not eligible for Medicare until 65 — and private coverage could take a big bite out of your nest egg. Without a subsidy, your health insurance at age 62 could cost $1,000 to $1,800 (or more), though it varies by state, plan and tier.

65 years old

If you claim Social Security at 65 and your FRA is 67, you’ll receive 86.7% of your full benefit (since you’re taking it 24 months early). So if your benefit at FRA is $2,000 a month, you’ll receive $1,734 a month at age 65 — and that’s a permanent reduction.

This is the age when you can claim Medicare, but you’re still responsible for out-of-pocket health expenses, including deductibles, co-insurance and services that aren’t covered, such as dental and eye exams. It also doesn’t cover prescription drugs, so you’ll need to buy drug coverage through Medicare Part D.

And it doesn’t cover long-term care expenses, which can be a significant expense. The cost of long-term care ranges from nearly $24,700 a year for adult day healthcare services to nearly $130,000 for a private room in a nursing home, according to the Genworth/CareScout Cost of Care Survey.

67 years old

This is when you can claim your full Social Security retirement benefit. But waiting longer still pays off. You can add an 8% annual credit up until age 70, which means you’ll end up with 32% more than at your FRA, or 132% of your Social Security entitlement.

However, if waiting until your FRA means you’re draining your other retirement accounts, like 401(k)s or IRAs, you’ll miss out on the benefits of compounding that could help in the latter years of your retirement.