Retire by age 62
How much do you need to retire at 62?
Retire at 62 with Social Security available immediately and Medicare three years away. Portfolio multiples, claiming-age tradeoffs, and a free calculator.
Age 62 is the first year most people can claim Social Security. That does not make it an automatic retirement date. Claiming early locks in a permanently smaller benefit, Medicare still waits until 65, and the portfolio may need to last 25–30 years.
The honest estimate is still spending-first: decide what the household must spend before Medicare and after benefits begin, then test whether the portfolio can cover the gap at 3%, 3.5%, and 4%.
A practical starting range at age 62
The table below is a pre-tax illustration in today’s dollars for $60,000 of portfolio-funded spending. It does not include Social Security, a pension, taxes, fees, or one-time expenses.
| Planning withdrawal rate | Portfolio multiple | Portfolio target |
|---|---|---|
| 3% | 33.3× | $2,000,000 |
| 3.5% | 28.6× | $1,714,286 |
| 4% | 25.0× | $1,500,000 |
Why 62 is different from 50 or 65
- Social Security can start now — but the monthly check is smaller than at full retirement age or 70.
- Medicare still begins at 65 for most people, so budget a three-year health-insurance bridge.
- The planning horizon is closer to a classic 30-year study window than a retire-at-40 plan, which is why 4% is more commonly used as a starting point — still not a promise.
- Account access is usually easier than at 50: IRAs and 401(k)s are generally available after 59½.
Model the claiming decision separately
A larger check at 67 or 70 can reduce the portfolio withdrawal later. It does not pay the bills at 62. Keep the early years and the later years as two phases, then decide whether delaying is funded by work, cash, or extra portfolio draw.
For a quick later-phase estimate, subtract expected annual Social Security from annual spending and divide the remaining gap by the withdrawal rate. Fund the years before that higher benefit separately.
The risk that still matters at 62
Sequence of returns still dominates the first decade. A poor market in years 62–67 can force larger withdrawals just as healthcare is self-funded.
- Run 3%, 3.5%, and 4% rather than defending one rate.
- Price actual pre-Medicare coverage instead of using a generic inflation add-on.
- Write the spending cut or part-time income you would use after a 20% drop.
Frequently asked questions
- Is $1 million enough to retire at 62?
- At 4%, $1 million supports about $40,000 of first-year portfolio withdrawals before taxes. With Social Security starting at 62, the combined cash flow may be enough for modest spending — and still fail if healthcare, housing, or early market losses are larger than planned.
- Should I claim Social Security at 62?
- Claiming at 62 increases cash now and permanently reduces the later benefit. The better educational test is whether the portfolio can fund a delay. RetireFire does not recommend a claiming age.
- Do I still need a Medicare bridge at 62?
- Yes for most people. Medicare generally begins at 65. Price three years of health coverage, including premiums, deductibles, and the loss of employer benefits.
Keep planning
Educational illustration only — not financial, investment, tax, legal, medical, or insurance advice. Calculations use simplified assumptions and do not predict future returns or benefits.