In the U.S., the retirement age is 62 or earlier, based on a survey in July conducted by the Federal Reserve Bank of New York, which found that the average chance adults expect to work beyond that age is 50.1 percent, as reported on Business Insider. The article goes further in noting that this may positive news for workers but that it will have a challenging impact on the American economy.
As for why more people are leaving the workforce now, COVID-19 is a key reason. More than one million older adults have left the workforce since the pandemic started, the risk of catching the virus outweighing the desire to continue working. Add to this the fact there are few appealing employment options (in particular in the service industry), thus making it more desirable to refrain from returning to work.
Thirdly, stocks rising in value made it possible for more people to retire. Consider the fact that the number of 401(k) and individual retirement accounts of at least $1 million hit 754,000 in the second quarter of this year, according to Fidelity (which is an increase of 75 percent compared to a year ago).
This rise in the number of people retiring during the pandemic will affect the economy in many ways. For one, the younger baby boomers will have more time to enjoy their retirement years in their 60s. It also positions them as old enough to retire but also young enough to make plans so as to reduce taxes.
For more on how this wave of early retirement will impact the economy, check the Business Insider article here.