The Average Retirement Age in 2024: US vs. Japan

Retirement is a major topic in the world. People in the United States are concerned about the future of Social Security, given its expected insolvency — meaning the program wouldn’t be able to pay all scheduled benefits — in 2035. Even those who don’t intend to rely heavily on Social Security are still worried about what kind of support they’ll receive once they retire, which could significantly impact the age at which they’re able to retire .

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But the U.S. is far from the only country where retirement is up for everyday discussion. People in Japan are worried, too.

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Average Retirement Age in the US

As of 2024, the average retirement age in the U.S. is 62, according to a recent Mass Mutual survey . Meanwhile, both retirees and pre-retirees mark 63 as the ideal retirement age.

Despite this, the survey found that 35% of pre-retirees don’t feel prepared for retirement, at least not for their ideal age. Roughly 34% of pre-retirees are also concerned that they’ll outlive their money if they do retire when they plan to.

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Social Security and Retirement in the US

According to the Social Security Administration , roughly half of the U.S. population aged 65 and up receive at least 50% of their household income from Social Security. A quarter of retirees receive at least 90% of their household income from these benefits.

Given this, it’s only natural to think that people would wait until they reach the full retirement age (FRA) to start collecting benefits. The FRA for those born in 1960 or beyond is 67 years old. Waiting until you’re 70 can result in the highest possible benefit amount.

That said, the earliest someone can collect Social Security benefits is 62 years old, which is partly why it’s also the average retirement age in America. The downside to collecting benefits before the FRA is that the benefits amount will be lower. And with rising costs, many Americans struggle to make ends meet — even if they do wait until the FRA.

More and more Americans are living longer and waiting to retire until they’re older, however. A big reason for this is that they’re in better health.

“One factor contributing to today’s higher retirement age is that college-educated Americans tend to work somewhat longer than others on average, largely because they tend to be in better health,” CNN found.

There is one other major concern for Americans, and that’s Social Security’s predicted insolvency. If nothing is done, the program won’t be able to pay the full amount by 2035. Instead, it’ll only cover about 75% of benefits, meaning a lower paycheck for those who need it most. This could result in more Americans working longer.

Average Retirement Age in Japan

In Japan, the legally mandated minimum retirement age is 60 years old. However, Japanese companies can set their own mandatory retirement age — as long as it’s not below the age of 60.

Employers who do choose a mandatory retirement age of under 65 still have to take some measures to secure stable employment for their workers. This generally means offering them continued employment until they reach 65.

Roughly 94% of Japanese employers have a retirement age of 60. Of that number, 70% require their employees to retire at that age. In some cases, even these “retirees” will continue to work for the company until they’re 65 — just in a less demanding position.

The working population of Japan has declined in recent years, however. This has led to discussions about raising the age residents can start receiving a pension. Residents — regardless of nationality — between the ages of 20 and 59 pay into the public pension system in Japan. They cannot collect benefits until they’re 65, however — thus the reason for the law.

So, what’s the average retirement age in Japan? It depends.

In a 2023 survey of 1,100 Japanese residents ages 60 and up, 66% of respondents said they were still working in some capacity. Of that number, 78% were between the ages of 60 and 64. A little over half were still working for their original company under a “continued-employment” arrangement, but not necessarily as regular employees — most reported that they were contract employees.

With that in mind, the retirement age in Japan isn’t fixed. It’s possible to work beyond 65. It just depends on the employer and the individual’s preferences.

This article originally appeared on GOBankingRates.com : The Average Retirement Age in 2024: US vs. Japan