While there are many variables to consider when deciding when to retire, a significant factor is the availability of health insurance. Medicare benefits are not available until age 65, even though you can elect reduced Social Security benefits at age 62. One study found that people who retired after age 65 were more likely than early retirees to not have employer-provided health insurance.
Between 1993 and 2001, the percentage of private employers with 500 or more employees that offered health insurance during retirement decreased from 46% to 29%. Between 1997 and 2003, the percentage of employers with 26 to 100 employees offering retiree health benefits decreased from 25% to 17%. While firms with fewer than 26 workers offering this benefit remained constant over this time period, that was only 6% of all firms. Overall, approximately 25% of workers in 2003 were entitled to retiree health benefits (Source: What Happens to Health Benefits After Retirement?, February 2007).