Average retirement age levels off

After decades of increases, reasons for working longer dwindle

By Michael Pramik, Ohio Public Employees Retirement System

July 17, 2025 – The average retirement age has risen steadily since the turn of the century, as many Americans have gotten used to working longer. However, a study released this spring suggests that the trend has plateaued, as the factors driving the increase appear to have run their course.

The Center for Retirement Research pegged the average U.S. retirement age last year at 64.6 years for men, and at 62.6 years for women. In its April research brief titled, “Will the Average Retirement Age Keep Rising?” the organization stated that average retirement ages for both men and for women appear to have leveled off.

There has been a generational increase in retirement ages dating back about 30 years, the study said, for several reasons. Among them:

Social Security
Policy changes made it easier and more rewarding to work longer, such as eliminating the earnings test and boosting delayed retirement credits. These shifts explain about 20% of the rise in work among people in their late 60s.

Pensions
Replacing pensions with 401(k)s removed the “retire-now” incentives. Since workers take on more risk, many stay on the job longer to build up savings, often a year or two more. That’s not a bad thing, as OPERS often points out the advantages of working a bit longer.

Education
Today’s older workers are more educated, which means better jobs, higher pay and more reasons to keep working. The gap between older and younger workers has nearly closed.

Health and longevity
People are living longer and staying healthier. That extra time in good health makes it easier — and more appealing — to keep working.

Health insurance
As retiree health coverage fades, more workers stay employed until at least 65 to keep their employer insurance before Medicare kicks in.

Lighter work
Jobs have gotten less physical, with more roles in services and technology. Even manufacturing relies more on knowledge than muscle now.

Couples
More dual-income couples mean retirement is often a joint decision. Since wives are usually younger, husbands tend to work longer to sync up.

Not just about money
Older workers are often healthy and financially secure. Many keep working for purpose, structure or enjoyment, not just a paycheck.

But the rise in retirement ages seems to have ended, the brief notes. One big reason is that the key elements of the trend seem to have been reached. Among them:

Social Security
All major changes are complete. The full retirement age is now 67 for those born in 1960 or later, and no further increases are expected. Delayed retirement credits have maxed out, and the earnings test hasn’t changed. Future retirements won’t be affected by Social Security reforms.

Pension Type
The shift to 401(k) plans is done. Most private-sector workers are now in defined contribution plans. Public-sector pensions remain, but they cover only about 10% of the workforce and aren’t changing.

Education
Educational gains helped boost older worker participation, but progress has stalled for men and is expected to slow for women by 2030. Future impact on retirement age will be minimal.

Healthy life expectancy
Health gains have slowed. Some groups, especially lower-educated men, are seeing declines. The increased capacity to work longer is unlikely to drive retirement age higher.

Retiree health insurance
Most employers no longer offer retiree health coverage. That shift is complete, so it no longer adds pressure to keep working until Medicare eligibility.

OPERS promotes the advantages of working longer. Those extra three years of public employment can significantly increase our members’ monthly retirement benefit. Members can see how by checking the front page of their annual statements, available through the OPERS online account, and comparing their earliest retirement eligibilities with both a reduced and unreduced benefit.