The retirement date you’re counting on may be years earlier than you think. A new Transamerica Institute survey suggests most workers exit the workforce years earlier than expected.
The institute’s 26th annual retirement survey, covering more than 7,600 middle-class Americans with household incomes between $50,000 and $199,999, found that nearly half of retirees left the workforce years before they had planned.
The exits were rarely voluntary and almost never driven by financial readiness.
One in three middle-class Americans don’t see themselves retiring before age 70, if at all, yet only 10% of surveyed retirees actually retired at that age or older, according to the Transamerica Institute survey.
Workers planning to close a savings shortfall with a few extra years on the job face a costly gap between that plan and what’s likely to happen.
57% of retirees in the Transamerica survey left before age 65
Among survey respondents, 57% of retirees left before age 65, the Journal of Accountancy reported. The median exit age was 63, even as 70% of current workers predicted they would remain employed until at least 65.
Nearly half of retirees (48%) retired sooner than planned. Among that group, 53% cited employment-related reasons for their early exit, the Transamerica Institute reported.
Catherine Collinson, CEO and president of Transamerica Institute and Transamerica Center for Retirement Studies, said many middle-class workers aspire to extend their careers as one way to bridge savings gaps.
<strong>The middle class has aspirations of extending their working years and fully retiring beyond traditional retirement age,</strong>
Collinson’s caveat that working longer only closes savings gaps if workers can remain healthy and employable did not hold for the majority of early retirees in the Transamerica sample.
A third of those leaving ahead of schedule cited personal health. Only 14% said they left because they had saved enough.
Inflation and AI fears compound the retirement savings squeeze
High living costs are making it harder for workers to build the cushion they will need if forced out early. Eight in ten workers who have not yet retired called today’s high cost of living a major obstacle to saving for retirement, the Transamerica Institute reported.
About 72% of middle-class respondents had taken at least one step to cope with inflation, including cutting daily expenses (40%), drawing down savings accounts (34%), and accumulating new credit card debt (23%), the survey showed.
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Among middle-class households not yet retired, median total retirement savings stood at $64,000 as of late 2025, with men holding $82,000 and women holding $49,000, the survey found.
Only a quarter of respondents strongly agreed they had built a large enough nest egg. Among workers who have not yet retired, 45% worry that artificial intelligence could make their job skills outdated, the Journal of Accountancy reported.
Social Security reliance grows as retirement confidence drops
About 42% of respondents view self-funded accounts like 401(k)s and individual retirement accounts as their primary retirement income source, the Transamerica survey found. Yet 28% now view Social Security as their primary income source in retirement.
Data from the Employee Benefit Research Institute paints a similar picture. The 2026 Retirement Confidence Survey found that retirement confidence is declining across both workers and retirees.
“Retirement confidence has clearly softened this year, and the data show why,” said Craig Copeland, director of wealth benefits research at EBRI. “Americans are contending with a mix of immediate financial pressures and long-term uncertainty.”
What the retirement age gap reveals about middle-class finances
The distance between planned and actual retirement ages exacts a measurable financial toll. Retiring before 65 also means covering health insurance independently until Medicare eligibility begins, a cost that can run thousands of dollars annually.
An unplanned early exit costs workers a year of 401(k) contributions and employer matching, forces an extra year of savings withdrawals, and can lock in a smaller Social Security benefit for life.
“The results show a clear need for more guidance, better planning tools, and solutions that help people turn savings into lasting financial security,” said Lisa Greenwald, CEO of Greenwald Research.
The data across both Transamerica and EBRI indicates that a retirement plan built around a guaranteed full career may not reflect the most common outcome.
Related: Transamerica Institute warns of a retirement crisis gripping Americans
