Deciding when to retire and claim Social Security benefits is one of the most complex decisions workers face today. While personal circumstances heavily influence the timing, the question increasingly seems to be whether retirement is feasible.

A Changing Retirement Landscape

When Social Security was introduced in 1935 during the Great Depression, the retirement age was 65. Back then, life expectancy was much lower—58 for men and 62 for women. Most Americans were not expected to live long enough to collect benefits. As labor economist Teresa Ghilarducci explains, “Setting the age at 65, when life expectancy was a lot lower, was a political decision to get the Social Security legislation through.”

Fast forward to today, where longer life spans mean people often draw benefits for decades. This has strained the system, leading to changes such as raising the full retirement age to 67. However, early benefits can still be claimed at 62, and Medicare eligibility begins at 65, creating a disconnect between modern life expectancy and outdated retirement norms.

The Funding Crisis and Proposed Solutions

Social Security faces a looming financial crisis, with economists predicting a universal 23% benefit cut within the next decade. To address the shortfall, one proposed solution is raising the retirement age further. Proponents argue this aligns with increased life expectancy, suggesting individuals should work longer.

Business leaders like BlackRock CEO Larry Fink support this idea, calling sexagenarian retirement “a bit crazy” while asserting that people should not have to work longer than they want to. Research appears to back this perspective; a Pew Research Center study found the number of working Americans aged 65 and older nearly doubled from 1987 to 2023, with many reporting higher job satisfaction than younger colleagues.

However, the reality is far more nuanced. While some older adults choose to work because they enjoy their jobs, many continue working out of financial necessity. Blue-collar workers, in particular, often lack the resources to retire comfortably. Ghilarducci emphasizes, “For almost everybody—the secretary, the health care worker, the retail clerk—research is finding retirement with enough income is better for their health.”

Retirement Challenges for Older Adults

Delaying retirement can be especially difficult for those facing financial insecurity, health challenges, or caregiving responsibilities. A survey by MassMutual revealed that nearly half of retirees left the workforce earlier than planned. Among these, one-third cited workplace changes, and a quarter pointed to illness or injury. Others were forced to retire to care for loved ones. These findings highlight the complex reality many older adults face. While working longer may benefit some, it is not a universal solution. Adequate income and health resources are critical for a secure retirement.

Final Thoughts

Deciding when to retire remains a deeply personal choice influenced by financial stability, health, and individual circumstances. While delaying retirement might work for some, improving financial preparedness and prioritizing health are key to navigating this critical life decision.