You made it! You’ve reached 67, or are almost there.
Age 67 is the full retirement age for tens of millions of Americans — when they can collect complete Social Security benefits and may feel psychologically ready to retire.
“Sixty-five might seem too early and 68 a little too late. But 67 is the perfect age,” says Pam Krueger, founder and CEO of Wealthramp. “You made it here, and now you have enough life left to live.”
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By 67, Medicare has already kicked in, you've hopefully saved a decent amount in your 401(k) and other retirement accounts and you may be at peak earnings. All you need to do is pick a retirement date!
But just because you are 67 doesn’t mean you should retire.
“You have probably seen people around you who have already retired, and it makes you feel the pull, but it has to align with your money, your savings, your investments, your emotions and your personality,” says Krueger. “Because for some people 67 is going to mean freedom, but for other people, it's just a number.”
If you retire at 67, there is likely no turning back. It may be hard to return to your old job, and finding a similar one could prove difficult. That's why it's important to make sure you are ready before you leap.
Unsure? See if you can say yes to these five questions.
1. Can you afford to stop working
You may want to retire at 67, but can you afford to do it?
Before quitting your job, ensure you have the necessary means. That doesn’t mean think in general terms about how much you have saved, how much you think you’ll have in monthly income and how much you’ll spend. Rather, you need to be specific and strategic.
Working alone or with a financial adviser, review your current plan by considering your expected income and anticipated expenses.
Consider the unknowns, such as health care, says Krueger. “Even if we are healthy, we don’t know if we will stay healthy," she says.
Your review should determine whether you're set up financially to not only get by, but to enjoy potentially 25 to 30 years of retirement.
If you answer yes, that’s one box checked. If not, consider working longer. Even a year or two can make a big difference in your savings.
2. Are you ready to stop working?
People work for financial security, for fulfilment, to make an impact and for a sense of purpose. While 67 may seem like the appropriate age to retire, especially if you have the means to do so comfortably, if work still gives you something, you don't have to retire at that point, or at all.
“There are a lot of behavioral benefits to working. It creates a sense of purpose, you have a community,” says David Blanchett, managing director, portfolio manager and head of retirement research for PGIM DC Solutions. “Working for a few years more positively affects your outcome. You save more. You’ll have higher Social Security.”
If you have a countdown clock on your desk for when you turn 67 and have enough money for retirement, then retiring is a no-brainer. If you love what you do and nobody is pushing you out, you may want to keep working.
3. Can your retirement portfolio handle market declines?
The stock market has been on a bull run for over a decade, which has made a lot of 401(k) holders millionaires. As of the end of 2024, Fidelity Investments found that 41% of all 401(k) millionaires were baby boomers. Generation X — or those between the ages of 45 and 60 — accounted for 57% of all 401(k) millionaires.
But stocks don’t always go up, and if the market has a correction, which some economists and investment professionals are bracing for, can you live off a smaller nest egg?
“We’re coming off a decade of the markets absolutely crushing it, and people tend to retire when the markets are at peaks,” said Blanchett. “What if you retire today and the markets go down 20%. Can your portfolio sustain that?”
The sequence of return risk refers to the danger of a retiree experiencing a big decline in their financial holdings early in retirement, which can significantly impact their portfolio, potentially leading to a shortfall in the long run.
If your retirement plan already factors in the potential for a 20% decline, then you are probably in good shape for the long term. If it doesn't, you may want to meet with a financial adviser or rework your plan before you retire.
4. Can you hold out a few more years to get higher Social Security benefits?
If you were born in 1960 or beyond, 67 is when you get all of your Social Security benefits. But if you wait until 70, you’ll get an 8% bump for each year you delay collecting benefits.
That 8% could mean a big increase in your monthly benefit, and if you are healthy and like your job, a good reason to hold off on retiring.
If you don’t need the extra money and don’t love your job, then Social Security shouldn’t stop you from retiring. If you like the idea of a bigger monthly check and you don’t dread going to work, then you may want to postpone retiring.
5. What are you retiring to?
Regardless of whether you are retiring at 62, 65, 67, or older, your best chance for happiness is having a clear plan as to what you'll spend your time doing.
Knowing the type of lifestyle you’ll live in retirement goes hand-in-hand with knowing how much money you’ll need. By having a plan, you’ll know when you can shift into that lifestyle both mentally and financially.
That transition may call for a lot of traveling and more money, which could mean an additional year working, or it could mean downsizing and saving money, which could mean retiring at 67.
“I know what I’m retiring from, but what am I retiring to?” says Krueger. “What am I going to do if I don’t go to work?”
If you have a detailed plan and are excited about it, then retirement could be within your reach. If you have no idea what you'll do once you retire, take the time to figure that out first.
Age is just a number
67 may seem like the age to retire. People around you are retiring or have already retired. You may think you're getting old and need to travel or get to that bucket list, but retiring is very specific to the person. There is no right age; it's more of a state of mind and should be approached that way.
“Don’t retire based on just age, retire based on your circumstances,” says Derrick Longo, a wealth advisor at Exencial Wealth Advisors. “Base it on what you want, your assets, savings, and spending.”
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