Americans may be retiring too early for their own good.

Many people aim to retire in their mid- to late 60s. But the average retirement age in the U.S. is considerably younger than that.

According to recent Gallup data, the average reported retirement age is 61. Now on the one hand, that’s up from age 57 back in 1991. But it’s also a pretty young age to retire at. And those who go that route could end up struggling financially because of it.

The problem with retiring at age 61

Those who save for retirement in an IRA or 401(k) plan can access their money penalty-free beginning at age 59 ½, and so come age 61, taking distributions becomes perfectly feasible. But just because that’s an option doesn’t mean age 61 is a good time to start taking withdrawals.

These days, Americans are living longer, so it’s conceivable that some might need their savings to last for 30 years or more. And tapping a nest egg at the relatively young age of 61 could lead to a situation where those funds are depleted prematurely.

Furthermore, retiring at age 61 means leaving the workforce at a time when claiming Social Security isn’t yet on the table. The earliest age seniors can sign up for Social Security is age 62, and filing at that age generally results in reduced benefits for life.

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