Peak 65 is a term used to describe the point in time when more Americans will turn age 65 than at any point in history. 2024 is the year in which this historical landmark will be reached.1
With so many individuals hitting the traditional retirement age - approximately 10,000 people daily - and with more seeking early retirement, what changes are in store for the next set of retirees?
The Alliance for Lifetime Income, a non-profit consumer education organization, has published a new economic report that puts a spotlight on the growth of retirees in America.
The report also focuses attention on the increasing number of Americans seeking early retirement. While 65 has long been considered the traditional age for retirement, many Americans begin retiring sooner.
- 61% of retirees exit the workforce before age 65 – often sooner than they planned.2
- Further, many retirees claim Social Security benefits as soon as they are eligible at age 62—which results in a lower benefit than if they delay taking social security benefits.
A recent study estimates that today’s older Americans will lose a total of $3.4 trillion in potential income because of early claiming, with an average lifetime loss of $95,000 per household.3
The Covid-19 pandemic has also impacted retirement with an estimated 4,000,000 workers prematurely retiring.4 It’s important to recognize that nearly half (47%) of all retirees retired as a result of circumstances beyond their control, not because they reached the age they identified as their goal achieved, reached a certain savings amount, or because they wanted to pursue hobbies.5
While all of this points to a rise in retirement insecurity, there are steps you can take today to help ensure a more secure retirement. Peak 65’s call to action will help support Americans’ retirement goals by ensuring financial professionals continue to guide their clients on income planning, Social Security planning and the need for adequate sources of protected income, such as annuities.
Nearly half (49%) of pre-retirees are concerned that their retirement savings and sources of retirement income won’t last through retirement.5 That’s why more and more people are looking for protected lifetime income from annuities to ensure they have a reliable stream of income they can count on in retirement. When it comes to financial security in retirement, 62% of pre-retirees believe part of their retirement portfolio should be in annuities.6
The Peak 65 initiative from the Alliance for Lifetime Income includes interactive and educational content to help you prepare for your own retirement.
Check out the “Peak 65” counter and see the demographic surge in Americans turning 65 – leading up to the “Peak 65” moment in 2024.
Take the Financial Planning Personality Quiz and discover your financial planning personality type. Knowing your financial planning personality type can help you and your financial professional have more productive conversations and put in place strategies and products that make sense for your situation.
Now, more than ever, it’s imperative to work with your financial professional to examine your retirement income strategy and consider incorporating an annuity for protected lifetime income into your plan.