Retirement age and planning: what to know in 2025

Retirement age is not one-size-fits-all. Update your plan by estimating needs, mapping income sources, checking current Social Security and RMD rules, managing investments and preparing for healthcare and longevity. Working after the traditional retirement age remains a common strategy to fill gaps.

What is retirement age?

Retirement age is the point when a person stops routine full-time work. There is no single global retirement age: countries, employers and professions set different ages. For physically demanding or hazardous jobs, formal retirement ages can be earlier. Many employers no longer enforce a fixed retirement age and offer flexible transition options instead.

Social Security and claiming age (U.S.)

In the United States, Social Security full retirement age (FRA) varies by birth year and currently ranges between about 65 and 67; for people born in 1960 or later, the FRA is 67. You can claim benefits as early as age 62 with a reduced monthly payment, or delay claiming past your FRA to increase your monthly benefit until age 70. The exact reduction or increase depends on your birth year and the Social Security rules that apply to you.

Why people work after traditional retirement age

Many people continue paid or part-time work after they stop full-time careers. Common reasons: to replace or supplement income, maintain health and social ties, cover rising healthcare costs, or pursue flexible or passion-driven work. Labor-force participation for older adults has risen in recent decades as lifespans and financial needs have changed. ¹

Key planning steps

1. Estimate the income you will need in retirement. Start with current spending, then adjust for changes (fewer work-related costs, higher healthcare costs, etc.).

1. Project retirement income sources: Social Security, pensions, 401(k) or other employer plans, IRAs, personal savings and part-time earnings. Factor in when you plan to claim Social Security because timing affects monthly benefits.

1. Review tax and withdrawal rules. Required minimum distribution (RMD) ages and rules changed in recent years; confirm the current IRS rules for your situation. ²

1. Set an investment glidepath. Many advisors recommend a more growth-oriented portfolio while you have a longer time horizon, then shifting to lower-volatility assets before and during retirement. Reassess risk tolerance as you age.

1. Plan for healthcare and long-term care. Medicare eligibility typically begins at 65 in the U.S., but Medicare does not cover all long-term care costs. Identify insurance options and expected out-of-pocket expenses.

1. Update estate, beneficiary and legal documents. Keep beneficiary designations, powers of attorney and wills current.

Takeaway

Retirement age is flexible and influenced by law, employer policy and personal choices. Good planning combines realistic spending estimates, an income plan (including when to claim Social Security), tax-aware withdrawals, and contingencies for health and longevity. If you haven't saved enough, working longer or part-time can be a practical part of a retirement strategy.

1. Confirm detailed Social Security full retirement age schedule by birth year on SSA.gov
2. Verify the exact percentage increase for delayed retirement credits and birth-year applicability on SSA.gov
3. Confirm current required minimum distribution (RMD) age and rules on the IRS website
4. Check recent labor-force participation trends or surveys for older adults (BLS, AARP)