I'm 62, and I've been working the last 43 years. I haven't set a retirement date yet. How do I know when it's the right time to pull the trigger? (2025)

How to narrow down your retirement date

Retiring too early could mean leaving your job at a time when you're not financially or emotionally secure. However, retiring past the traditional age could mean missing out on things you've always wanted to do in your golden years.

There are a number of things you should consider when deciding when to retire. First, think about Social Security, and whether you'll need to claim benefits right away if you retire.

If you were born in 1960 or later, which is the case if you're 62 now, your complete Social Security benefit won't be available to you until age 67 — otherwise known as your full retirement age (FRA).

You can file as early as age 62, but your benefits will be reduced if you don't wait until FRA. The closer you get to FRA, the less of a reduction you'll face.

You should also think about health insurance, since that's something you need to have at any age.

According to Fidelity, a 65-year-old who retired in 2023 can expect to spend an average of $165,000 in health care and medical expenses throughout retirement.

“Health care costs are among the most unpredictable expenses, especially when it comes to retirement planning,” said Robert Kennedy, SVP, workplace consulting at Fidelity.

Medicare eligibility generally does not begin until age 65. If you retire sooner, and your health insurance is tied to your job, you might end up spending a lot of money to put coverage in place.

You'll need to research options, like COBRA, which allows you to retain your old employer coverage for a period of time, or a health insurance marketplace plan to see what the costs entail.

In addition, it's important to examine your finances and see what the numbers look like. AARP found that 20% of Americans ages 50 and over have no retirement savings. The median retirement account balance of households of those ages 55 to 64 was only $185,000 as of 2022, per the Federal Reserve.

However, a 2024 Northwestern Mutual survey found that Americans believe it takes $1.46 million to pull off a comfortable retirement. So, you'll need to see where your savings fall and what sort of annual income your nest egg might allow for.

If you're sitting on $1 million, for example, you can use the popular 4% rule to arrive at an annual income of about $40,000. You may decide you can live comfortably on that, in addition to whatever Social Security pays you. But if not, that’s a good reason to work longer and save more.

Also, think about how much debt you have (if any).

In 2024, 68% of retirees with debt reported having credit card debt outstanding, according to the Employee Benefits Research Institute. High-interest debt like that could eat up a big chunk of your retirement income, so you may want to try to hold off on ending your career until your credit card balances are gone.

Finally, think about the non-financial side of retirement. Many people end their careers only to wind up lost. If you’re not sure how you’ll fill your days in retirement, you may want to keep working longer – even if you can afford to stop now.

What’s the ideal age to retire?

A recent MassMutual survey found that on average 63 is the ideal age for retirement, according to both retirees and pre-retirees. Nearly half (48%) of retirees said they retired earlier than planned, most commonly due to changes at work (33%) or being able to afford to retire sooner than expected (28%). Other reasons for retiring early include illness/injury (25%), to relax and enjoy more free time (25%) and burnout (17%). Only 10% of retirees retired later than planned, with the most common reasons being to increase their wealth during retirement (41%) and satisfaction with their job (38%).

The decision to retire is a very personal one. So, a good bet is to think about how you feel about working versus retiring.

If you love your job and are someone who thrives on being busy, then you may not want to retire in the next year or two. Similarly, if you feel your savings could use a boost, working a bit longer could help pad your nest egg.

Effective this year, there’s a super catch-up contribution limit available for 401(k) savers ages 60 to 63. It allows you to put in an extra $11,250 instead of the $7,500 available to workers 50 and over.

On the other hand, if you’re miserable at your job and it’s a source of stress, you may want to consider retiring this year or next if you can afford to. Even if you like your job, if there are things you want to do in retirement that you fear you won’t be able to do a few years down the line, like take a six-month backpacking trip, that’s another reason to consider ending your career sooner as long as the finances work.

If you’re really torn, you may want to talk to a financial adviser and get their guidance. A finance professional can help you understand the pros and cons of retiring at various points so you can feel more confident in your decision.