You can retire when your savings, Social Security, and any pension cover your spending for the rest of your life. Your plan also needs room for a bad market and a health surprise. The answer to “when can I retire?” comes down to that math. A few ages matter too, since they change what money you can reach and what health coverage you have.
Most people stop working earlier than they expect. Almost half of retirees left the workforce sooner than they planned, according to the 2026 Retirement Confidence Survey from EBRI and Greenwald Research. Health problems and changes at work drove most of those exits. Knowing when to retire starts with a plan that holds up on the date you pick and on one that comes sooner.
What Age Can You Retire?
You can retire at any age, but several birthdays change your options. Penalty-free access to retirement accounts opens at 59½. Social Security can start at 62, and Medicare at 65. Full Social Security benefits arrive at 67 for anyone born in 1960 or later.
Retirement Ages That Change Your Plan
| Age | What changes | What it means for your retirement date |
|---|---|---|
| 55 | Rule of 55 | Leave a job in the year you turn 55 or later, and that employer’s 401(k) opens without the 10% penalty |
| 59½ | Penalty-free IRA and 401(k) withdrawals | Retire sooner and you need savings you can reach before then |
| 62 | Earliest Social Security | Claiming now cuts your monthly check by up to 30% for life |
| 65 | Medicare | Retire sooner and you need your own health coverage until then |
| 67 | Full retirement age, born 1960 or later | Your full Social Security benefit is available |
| 70 | Delayed retirement credits stop | Your benefit grows 8% for each year you wait past 67, up to 70 |
Source: Social Security Administration; SSA, delayed retirement credits; IRS Topic 558; Medicare.gov.
Retiring before 59½ takes a bridge of taxable savings, Roth contributions, or other penalty-free withdrawals before 59½. Plans to retire at 55 often lean on the Rule of 55. Many people aim for 62, the first year Social Security is available, though retiring at 62 still leaves three years to cover before Medicare.
The average retirement age is 61, according to Gallup’s April 2026 survey. Workers who haven’t retired yet expect to stop at 66. That five-year gap is one reason to plan for an earlier date than the one you have in mind.
How Do You Know When You Can Afford to Retire?
You can afford to retire when your guaranteed income plus a sustainable draw from savings covers your yearly spending. Three numbers tell you where you stand.
- Your spending. Start with what you spend now, then adjust for the costs that end with work and the ones retirement adds. A careful estimate of your retirement expenses is the base of every other number.
- Your guaranteed income. Add up Social Security, any pension, and annuity payments. Your Social Security statement shows estimates at 62, 67, and 70.
- The gap your savings fill. Subtract income from spending. Your portfolio has to cover what’s left, every year, for as long as you live.
Here’s how that works for one couple. They plan to spend $80,000 a year and expect $36,000 a year from Social Security. Savings need to cover $44,000. Morningstar’s State of Retirement Income for 2026 puts a safe starting withdrawal rate at 3.9% for a 30-year retirement. At that rate, they’d need about $1.1 million in savings, before taxes and health costs.
That figure is a starting point. A fixed rate can’t see a pension that starts later or part-time income in your first years. It also can’t see a plan to cut spending in a bad market. A longer retirement calls for a lower starting rate. A 65-year-old today can expect to live to about 85, according to the CDC, and many people will live well past that. Planning for at least one spouse to reach 95 gives your savings a margin.
Two costs trip up retirement dates more than others. Health insurance before Medicare can be one of the largest bills in early retirement. The enhanced ACA subsidies expired at the end of 2025. Without them, KFF estimated, a single 60-year-old earning $64,000 would pay about $14,931 a year for coverage. Premiums for health insurance after 55 rise with each birthday. Taxes come next. Withdrawals from traditional 401(k)s and IRAs count as income, so which accounts you draw from first changes how far your savings go.
Does Working One More Year Make a Big Difference?
One more year of work helps your plan three ways. It adds a year of saving, removes a year of withdrawals, and can raise your Social Security benefit if you also wait to claim.
The effect is largest for people who are close. If your plan falls a little short at 63, a year or two of extra work can close the gap. Your lifestyle doesn’t have to change. The tradeoffs in working another year or two include time, health, and how much you enjoy the job.
You can split the difference. A phased retirement or part-time role keeps some income coming in while you test what retirement feels like. A five-year transition timeline can map those steps.
When Should You Claim Social Security?
Claiming Social Security and retiring are separate decisions. You can stop working at 60 and claim at 70, or keep working and claim at 62.
Claiming at 62 cuts your benefit by 30% for life when your full retirement age is 67, according to the Social Security Administration. Waiting past 67 adds 8% a year until 70. About one in five people who started retirement benefits in 2025 did it at 62. SSA’s award data for 2025 put the share at 22.7% for women and 21.5% for men.
Living on savings first can let you claim later and lock in a bigger check. That larger benefit also rises with inflation each year, which protects you if you live into your 90s. For couples, the higher earner’s claiming age sets the survivor benefit. Your Social Security strategy works best when you plan it alongside your retirement date and your retirement income plan.
What If You Have to Retire Earlier Than Planned?
Plan for an exit you didn’t choose. Among retirees who left work early, 41% cited a health problem or disability, according to EBRI and Greenwald Research. Another 35% pointed to changes at their company.
A layoff at 60 changes the math fast. You may need to cover health insurance, delay Social Security, or tap savings sooner. If you’re forced into retirement, the first few weeks matter most for severance, benefits, and the order you tap accounts. A few jobs also set a mandatory retirement age, so check whether yours does.
The best defense is a second scenario. Run your plan with a retirement date two or three years earlier than your goal. If it still works, you have room. If it doesn’t, you know what to fix while you’re still earning.
Is Money the Only Thing That Decides When to Retire?
No, money isn’t the only thing that decides when to retire. It sets the earliest date you can. Your health, your relationships, and your plans for your time help you pick the right one.
Retiring to something gives the first years a shape. Knowing what’s pulling you toward retirement helps you set a date you won’t regret. The signs it’s time to retire often show up in your energy and your outlook before they show up in your balances.
Couples face a second question: whether to retire together. Different ages, health, and job satisfaction can make staggered dates work better. That’s why retirement planning for couples starts with a shared timeline. The first year also brings an adjustment period, so it helps to sketch what to do in retirement before you give notice.
20 Questions to Ask Before You Retire
Work through these questions a few years before your target date. Each one points to a decision in your plan.
- How much will you spend each year once you stop working?
- Which of today’s costs end when work does, and which new ones start?
- How much will Social Security pay you at 62, 67, and 70?
- Do you have a pension, and does it rise with inflation?
- How much can your savings support each year without running out?
- How would a market drop in your first five years change your plan?
- How will you pay for health insurance before Medicare at 65?
- Have you planned for health costs after 65, including long-term care?
- Which accounts will you draw from first, and what will you owe in taxes?
- Will your mortgage and other debts be paid off when you stop working?
- How long might you and your spouse live, and does your plan last that long?
- Do you and your partner agree on when each of you will retire?
- Will you support children or aging parents, and for how long?
- Would part-time work or a phased exit make the numbers easier?
- What would you lose by leaving work, from income and benefits to purpose and friends?
- What will you do with your time in your first year, and in your tenth?
- Do you want to stay in your home, downsize, or move?
- How is your health, and how might it change your timing?
- What’s your plan if you have to retire two or three years early?
- Have you tested your retirement date in more than one scenario?
If several answers are “I don’t know,” that’s the work to do next. The steps to take within 10 years of retirement turn these questions into a timeline. Some of the most useful readiness checks aren’t financial, like the skills that make retirement work.
How Can You Test Your Retirement Date?
Run your retirement date as a scenario before you commit to it. Change the date, your spending, and your Social Security claiming age, then see whether your money lasts through a bad market.
The Boldin Planner projects your income, spending, savings, and taxes year by year. Its Social Security Explorer compares claiming ages for you and a spouse. PlannerPlus lets you build up to nine scenarios beside your baseline, then compare up to three side by side.
Start with three: the date you want, a year later, and two years earlier than you’d choose. If the earliest date holds up, you have more choices than you thought. If only the later one works, you know what one more year buys you.
When Can I Retire? FAQs
When can I retire with full Social Security benefits?
Full Social Security benefits start at age 67 for anyone born in 1960 or later. People born earlier reach full retirement age between 66 and 67. Claiming before that age reduces the monthly benefit for life, and waiting past it raises the benefit 8% a year until 70.
What is the earliest age you can retire?
There’s no minimum age to stop working, though most retirement money has age rules. Penalty-free IRA and 401(k) withdrawals start at 59½ in most cases, Social Security at 62, and Medicare at 65. Retiring earlier takes savings you can reach and your own health coverage.
How much money do I need to retire?
The money you need to retire depends on the gap between your yearly spending and guaranteed income like Social Security. Savings have to fill that gap for 30 years or more. At a 3.9% starting withdrawal rate, every $10,000 of yearly gap takes about $256,000 in savings, before taxes and health costs.
Is it better to retire at 62 or 67?
Retiring at 67 gives savings five more years to grow and avoids the 30% cut from claiming Social Security at 62. Retiring at 62 buys five more years of free time but needs savings to cover health insurance until Medicare. Some people retire at 62 and delay claiming Social Security to get both.
Can I retire at 55?
Retiring at 55 is possible with enough savings you can reach before 59½. The Rule of 55 lets you take penalty-free withdrawals from the 401(k) of the employer you leave that year. You’ll also need health insurance for 10 years before Medicare and a plan for the years before Social Security.
How do I know if I’m ready to retire?
You’re ready to retire when your plan covers your spending through a bad market and a long life. Readiness also means knowing how you’ll spend your time and who you’ll spend it with. Testing a few retirement dates side by side shows which one fits both.
What is the best age to retire?
The best age to retire is the earliest age your plan supports with room for bad markets and health surprises. For many people that’s between 62 and 67, when Social Security, Medicare, and penalty-free withdrawals line up. The average retiree stops at about 61.
