The Average Retirement Age in 2024: US vs. India

Whether you’re mid-career or just a few short years away from retirement , you might be wondering when other people tend to retire. Are you retiring around the same time as your peers, or are you a bit early or late?

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This is a question many people find themselves asking, and not just in the United States. People all over the world have their own retirement plans and their ideal retirement age. This is just as true for residents of America as it is residents of India.

As you continue down the path toward retirement, here’s the average age people in the U.S. and India typically leave the workforce, along with some of the reasons why .

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Average Retirement in America

In the U.S., the average retirement age is 62 years old. Not everyone retires at that age, however. Some will get there much sooner. Others will keep working for several more years to get the most retirement income possible and to take advantage of any health benefits their employer offers them.

In the U.S., people can enroll in Medicare as soon as they turn 65. Those who have a qualifying medical condition or disability may be able to get it as early as 62. So, waiting until at least that age generally makes sense, provided the individual is healthy enough to keep working.

Most working Americans are also eligible for Social Security as early as age 62, which could be another reason why so many wait to retire until at least then. The average benefit amount for retired workers in July 2024 was $1,919, according to the Social Security Administration.

Around half of people ages 65 and up receive 50% or more of their household income from Social Security. Roughly a fourth of these individuals get 90% or more of their income from Social Security. This just goes to show how vital the program is for so many.

It is possible to get a larger benefit amount, but only if you wait until the full retirement age. For those born in or after 1960, that age is 67. For maximum benefits, you may need to wait to collect until you’re 70.

Some Americans are concerned about both Social Security and Medicare, something that could affect the average retirement age going forward. According to the SSA , Social Security will be insolvent by 2035 — unless some major changes occur. This means it will only be able to cover about 75% of people’s anticipated benefits.

Medicare may also be in danger of running out of funds as early as 2036. This could also impact people’s retirement plans.

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Average Retirement in India

India has one of the lowest average retirement ages in the world, right up there with Indonesia, Saudi Arabia, and China.

Generally speaking, people in India reportedly retire between the ages of 58 and 60 , depending on their industry. Back in 2020, the Kerala Government legally mandated an increase in the state retirement age to 60. In the state of Andhra Pradesh Government, the minimum retirement age is 62.

Each state can set its own rules, but all must abide by the central government. The retirement age for employees of the central government is 60 years old.

It’s worth noting that India’s pension system, which consists of employer-managed funds and employee contributions, has its own age requirements. Currently, residents must be at least 58 years old to collect from the Employees’ Pension Scheme. They must also have made contributions for 10 or more years.

India also has what’s known as the Employees Provident Fund , which residents can become eligible for as soon as they turn 55 — though some may be eligible for partial withdrawals in select cases. This program, along with the Employees’ Pension Scheme, is available to government employees and those who work for companies with at least 20 employees.

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