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In a recent study, it was discovered that the average age at which people in the U.S. retire is 66, which is six years older than the average age in a similar study done in the 1990s. This trend isn’t surprising considering how much views on retirement change as people get older. High school and college graduates plan to retire early, but, as they reach their 30s, their views tend to change. Middle-aged adults expect to work well into their retirement years.

People Are Living Longer

While it’s certainly good news to learn that people are living longer lives, this also means they will need more money to finance their retirement years. The average lifespan for an American adult was 78.7 years, but adults in the modern era are living to their 80s and 90s more frequently. This adds up to a decade or more to one’s retirement years. Many people recognize this possibility and do what they can to plan for a longer life. This may involve taking out additional life insurance policies, putting more into their IRAs, or shifting assets to create better investment diversity.

Some People Aren’t Saving

In truth, only 77% of American adults are saving for their retirement either through an employer-sponsored program or through an IRA. That leaves 33% of Americans without the savings they will need to retire. Even when adults are saving for their retirement, studies show that they’re not saving nearly enough. Adults aged 55 to 60 have an average of $107,000 saved for their retirement, but research shows that the average adult needs a minimum of $500,000 to retire fully.

Don’t Count on Your Social Security

By 2035, the Social Security Administration will no longer have enough money to pay full benefits to every retired adult in the country. This is largely due to the increase in retirees that’s expected within the next 14 years, jumping from 56 million to 78 million. As more people apply for benefits, monthly payments to each individual will decrease.

Another factor that affects retirement for many people is that it costs more to retire than the average person expects. A conservative estimate suggests that the average person needs close to $1 million to finance their full retirement. If the individual requires long-term medical care or assisted living, those numbers rise significantly. For the 70% of Americans who will require assisted living, they will need an additional $4,000 to $8,000 per month for each year of retirement.