Biggest surge in retirement-age population in the nation's history

  • 4.1 million Americans turning 65 this year and every year until 2027
  • Around 11,000 a day reaching 65 years of age

In 2024, the United States is experiencing an unprecedented number of citizens reaching retirement age, with an estimated 4.1 million Americans turning 65 this year and in each subsequent year until 2027. This phenomenon, referred to as "peak 65" or the "silver tsunami," marks the highest increase in retirement-age population in the nation's history.


As these millions embark on their retirement journey, there are essential considerations and steps to be aware of, particularly regarding Medicare enrollment and retirement savings.


Medicare Enrollment at Age 65

Most individuals at 65 years of age should enroll in Medicare Part A, which covers hospital insurance and requires no premiums. For those still employed with health insurance from their employer, Medicare Part B, which deals with medical services like doctor's visits and outpatient care, might act as a secondary payer. 

It's crucial to understand the coordination of benefits rules to determine whether Medicare will be the primary or secondary payer. Missing the enrollment window around the 65th birthday can lead to substantial late enrollment penalties, particularly for Medicare Part B, where penalties are permanent and increase the premium by 10% for each year of delay.


Financial Decisions at Retirement

Beyond healthcare, financial decisions are critical at 65. Those turning 65 should consider options for their 401(k) plans, whether to continue working or enter semi-retirement, and the emotional aspects of retiring. For those who enjoy their work, continuing beyond 65 can have financial and cognitive benefits. Alternatively, semi-retirement can offer a balance between work and leisure.


Message to Younger Generations

It is important to start accumulating retirement savings early, despite financial challenges like student loans or high rent. Early savings benefit from compound interest, making them more effective. While Social Security is likely to persist, they be less able to support retirees in the future due to projected depletion of Social Security trust funds by 2033, potentially reducing benefits by about 20%. Read more about the state of Social Security funds.

This period of "peak 65" in the U.S. serves as a reminder of the importance of planning for retirement, regardless of one's current age.