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Can I Retire at 60 or 62? What You Need to Know First

By the Can I Retire Calc team · Last updated October 30, 2026 · General education, not personal advice

Retiring at 60 or 62 is a goal for many people, and it can be done. It does change the math in four ways: your money has to last longer, you may be without Social Security for a while, you may be without Medicare, and you need to plan how to access your accounts. This guide walks through each one.

1. Your money has to last longer

Retire at 60 and plan to age 92, and your savings must support you for 32 years. That is why many planners suggest a more cautious withdrawal rate for early retirees, often in the 3% to 3.5% range, instead of 4%. Learn about the 4% rule and its limits.

2. Social Security: you can start at 62, but the check is smaller

You cannot claim retirement benefits before 62. If your full retirement age is 67, claiming at 62 permanently reduces your monthly benefit by about 30%. If you retire at 60, you have at least two years with no Social Security, and if you wait until 67 or later to claim, you have at least seven years to cover from savings. See how claiming age changes your benefit.

3. Health insurance until Medicare at 65

Medicare generally starts at 65, so retiring at 60 or 62 leaves a gap of three to five years. Options include COBRA, a plan from the health insurance marketplace, a spouse's plan or retiree coverage. Budget for it; it can be a large cost. Read about covering health insurance until Medicare.

4. Accessing your retirement accounts

• Age 59½ and older: You can generally withdraw from a 401(k) or IRA without the 10% early-withdrawal penalty (ordinary income tax may still apply). That means at 60 or 62 your retirement accounts are generally accessible.
• The "Rule of 55": If you leave an employer during or after the year you turn 55, you can generally take penalty-free withdrawals from that employer's 401(k), though income tax still applies. It does not generally apply to IRAs or to plans from earlier employers.
• Taxable accounts: Money in regular bank or brokerage accounts has no age rules, which makes it useful as a bridge.

Rules have exceptions and details, so confirm with irs.gov or a tax professional before relying on them.

How much might you need? An example

Suppose you want to spend $4,000 a month (in today's dollars) including healthcare, and you expect $2,500 a month from Social Security when you claim at 67. Assuming a 6% yearly return, 2.5% inflation, steady returns and a plan to age 92, the savings you would need at retirement in today's dollars look roughly like this:

Illustration only. It ignores taxes and assumes steady returns. Real markets vary, so a cushion makes sense. The "chance your money lasts" figure in the calculator uses simulated markets to show how sturdy a plan is.

What this example shows

• Each year you retire earlier adds roughly $30,000 to $35,000 to the savings you need in this example.
• If you claim Social Security at 62 instead of 67, the needed savings rise further because the monthly benefit is smaller. Waiting until 70 lowers the needed savings.
• Spending and healthcare costs have a bigger effect than most other choices.

A simple checklist before you retire at 60 or 62

1. Estimate your yearly spending, including health insurance premiums and out-of-pocket costs.
2. Check your Social Security estimate at ssa.gov and decide when to claim.
3. Price out health coverage until Medicare begins.
4. Plan which accounts you will withdraw from first, and consider the tax effect.
5. Keep a cash cushion of one to two years of spending to avoid selling during a market drop.
6. Test your plan with cautious returns and a long lifespan.

Frequently asked questions

This article is for general educational purposes and is not financial, tax or legal advice. Rules and limits change; confirm details with official sources or a qualified professional. See our Disclaimer.