Health, layoffs drive 76% of early exits
Financial plans disrupted, experts urge “Plan B”
Amid ongoing economic uncertainty, fewer Americans are retiring on their own terms than many expect.
According to the annual Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI), 46% of retirees in 2025 left the workforce earlier than planned.
That means nearly half of retirees were unable to follow their intended retirement timeline. Notably, early retirement is often not a matter of choice. External factors — including health issues, disabilities, caregiving responsibilities, and workplace changes such as layoffs or business closures — accounted for 76% of early retirements.
Experts say that while working longer is one of the most effective ways to strengthen retirement finances, it is not always a realistic option. Economic shifts and corporate restructuring continue to push older workers out of the labor force sooner than expected.
Early retirement can significantly disrupt financial plans. With income ending earlier than anticipated, retirees must rely on savings for a longer period, increasing the risk of depleting assets.
In addition, claiming benefits early through the Social Security Administration can reduce monthly payments, potentially leading to lower lifetime income.
The survey also highlights a gap between expectations and reality. While many workers anticipate retiring around age 66, the actual average retirement age is closer to 61.
Financial experts emphasize the importance of having a backup plan. Preparing for the possibility of early retirement includes increasing savings, reducing debt, and lowering fixed expenses.
They also recommend taking advantage of catch-up contributions available to workers age 50 and older, and considering a “bridge strategy” — using personal savings or investments to delay claiming Social Security benefits and maximize long-term payouts.
“Retirement timing is often influenced by factors beyond an individual’s control,” experts said. “Planning for multiple scenarios, rather than relying on a single timeline, is essential.”
