Retired Military Finances 101: States with the Oldest and Youngest Average Retirement Age

If you retire from the military, when are you retired? Is it when you hang up your uniform? If you start a second career, is it when you finish that phase? Or is it when you take a lessor workload? I suppose it could be any of those and it is probably ultimately up to you.

Even though it is up to you, it might be worth it to take a look at when those around you are retiring and perhaps why.

States with the Oldest Average Retirement Age

In some states, people continue working well into their 60s and beyond. These states generally have a combination of higher living costs and a strong work culture that encourages later retirement.

Washington, D.C. (Average Retirement Age: 67)

Washington, D.C. has an average retirement age of 67.¹ The area has a high concentration of professionals working in government, lobbying, and various service industries. The nature of these jobs, along with a relatively high cost of living, often encourages residents to work longer to continue pursuing their careers and save enough money for retirement.

Massachusetts (Average Retirement Age: 66)

Massachusetts' average retirement age is 66.² The state has a strong job market, especially in healthcare, education, and technology. Many residents continue working later due to the high costs of living, particularly in areas like Boston. In addition, the state's work culture, driven by its many universities and research institutions, encourages people to stay engaged in their careers for longer.

New Jersey (Average Retirement Age: 65)

The high cost of living in New Jersey, coupled with property taxes that are among the highest in the country, pushes many residents to retire later than in other states. The average retirement age is 65.² Many people in New Jersey also work in high-paying jobs in finance and business, which often encourage employees to work longer in their careers.

California (Average Retirement Age: 64)

While California’s weather and lifestyle are ideal for many retirees, the state’s high cost of living in cities like San Francisco and Los Angeles can delay retirement. The average retirement age in California is 64.³ Many Californians also work in industries like tech, entertainment, and business, where retirement is often postponed due to career growth and also being able to save enough to afford to retire in the Golden State.

States with the Youngest Average Retirement Age

In contrast, quite a few states have residents who retire earlier, either due to lower costs of living, more favorable tax policies, or a workforce that encourages earlier transitions for employees.

Here are some of the states with the youngest average retirement age.

West Virginia (Average Retirement Age: 61)

West Virginia has a relatively low cost of living, making it easier for residents to retire earlier. The average retirement age in West Virginia is 61.² The state also has a large population of blue-collar workers, many of whom work in physically demanding jobs like mining or manufacturing, where early retirement is often a necessity rather than a choice.

Alabama (Average Retirement Age: 62)

With one of the lowest costs of living in the nation, Alabama is a state where residents can afford to retire earlier. The average retirement age in Alabama is 62.² Many retirees move to Alabama because of its low property taxes and affordable housing, both of which are tailwinds that encourage an earlier retirement. The state’s slower pace of life also promotes a culture of early retirement.

Kentucky (Average Retirement Age: 62)

Like Alabama, Kentucky benefits from a low cost of living, which allows residents to stretch their retirement savings further and retire at 62 years old on average.² Many people in Kentucky work in agriculture or manual labor industries, where early retirement is often the result of job-related fatigue.

Michigan (Average Retirement Age: 62)

Michigan is an affordable state for retirees, and many workers in industries like automotive manufacturing opt for early retirement due to pension plans that make an earlier retirement possible. The average retirement age in Michigan is 62.² Despite the challenges of the state’s economy in recent decades, Michigan remains a place where retiring earlier is common due to the combination of pensions and manageable living costs.

When you retire depends on so many factors, some of which are outside of your control. While some people are ready and able to step away from work in their early 60s, others continue into their late 60s and beyond. Where you live might impact when you decide to retire.

Military Finances are Different

As a retired Senior Military Officer or SNCO there are other factors you might want to consider when deciding where to retire. For instance, you might want to consider the tax treatment of military pensions or benefits available to veterans. A financial advisor or planner who doesn't routinely work with retired military members may not even consider these things when giving you advice. That's why we think Active and Retired Senior Military Officers and NCOs should work with a financial adviser that deals with these issues each and every day. If you'd like to find out how we work with clients just like you, use the button below to schedule a free, initial consultation.

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