While some workers believe they’ll be employed past retirement age, the truth is that some may be forced into an early retirement.
Findings from the 2026 Annual Retirement Study from the Allianz Center for the Future of Retirement show that over half of Americans (53%) currently have a target age they plan to retire at.
However, the reality is that many depart the workforce earlier than initially expected. While the findings report that 53% of Americans retired on their own schedule, 42% had to retire earlier than planned. In fact, only 5% of retirees surveyed reported leaving their role later than anticipated.
The findings emulate recent research from the Society of Actuaries, which showed that 59% of its respondents retired earlier, and only 6% left the workforce later than planned.
When asked why they exited the workforce earlier, Allianz found that most reasons were beyond the retiree’s control. Common causes included health issues that prevented job performance (30%) and unexpected job loss (21%), while others realized they were financially ready earlier than expected (21%).
Finances, as expected, play a major role when deciding when to retire. Retirees must consider day-to-day costs and inflation numbers, along with necessary expenses like medical expenditures as they age.
“When retirement comes early, it can quickly turn a solid plan into a fragile one,” said Kelly LaVigne, VP of consumer insights at Allianz Life. “That’s because fewer working years and more retirement years can put significant pressure on savings—especially when early retirement isn’t a choice.”
Seventy percent of those surveyed aspire to replicate the financial strategies of those who retire early, and over half (54%) say they would immediately retire if they won the lottery. Until that happens, the majority of Americans (80%) are relying on retiring later and working longer to financially support their future retirement lifestyle.
Yet, as Allianz’s study shows, working longer isn’t always an option for pre-retirees. Some are forced into an early retirement after experiencing job loss, and others are concerned over their cognitive health as they age into their roles.
According to Allianz, 35% of respondents would likely decide to retire if they lost their job in the next six months, and 54% relay worries over how potential cognitive decline could impact their ability to work.
“These findings show that many retirement plans may have a blind spot, because people assume their job and health will stay stable right up to retirement,” LaVigne said.