Why More People Are Retiring Early Today Than Ever Before
Apr 28, 2025
More Americans are choosing early retirement, and the trend is accelerating. COVID-19 led to an unexpected surge, with 2.6 million more retiring than anticipated. The average retirement age has dropped from 64 to 62 in just a few years. Interest in the FIRE movement has soared, increasing by 300%. The rise of remote work allows many to retire 2-5 years earlier. A focus on work-life balance is reshaping priorities, with many willing to sacrifice income for freedom. Health concerns also drive early retirements, affecting one in four.
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question_answer ANECDOTE
Client's Health Reveals Retirement Delay
A client with $3 million felt upset because she kept postponing retirement for more money.
Her health issues made her realize she should have retired earlier to enjoy activities like hiking.
insights INSIGHT
Retirement Age Drops Sharply
The average retirement age dropped from 64 in 2019 to 62 in 2022, marking one of the steepest declines in decades.
Early retirement is generally considered retiring before age 65, traditionally when Medicare starts.
insights INSIGHT
FIRE Movement Spurs Early Retirement Interest
Searches for the FIRE movement surged over 300% from 2018 to 2023, reflecting growing interest.
Financial strategies like tax optimization can have more impact than simply working longer.
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More Americans than ever before are retiring early due to seven key factors reshaping our approach to work and retirement planning.
• COVID-19 accelerated early retirements with 2.6 million more people retiring during the pandemic than expected • Average retirement age dropped from 64 in 2019 to 62 in 2022, one of the sharpest declines in decades • The FIRE movement (Financial Independence, Retire Early) has grown by 300% in searches between 2018-2023 • Strong market performance created record numbers of 401(k) millionaires • Remote work flexibility enables 40% of workers to retire 2-5 years earlier than previously planned • 68% of Americans have reprioritized work-life balance with 47% willing to accept lower income for more freedom • Health concerns prompted 25% of early retirees to leave the workforce sooner than expected
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If you want help with your early retirement, reach out to Root Financial Partners or consider the Early Retirement Academy to access planning tools and resources.
Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)