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How Much Do You Need to Retire at 60?

Retiring at 60 means bridging at least two years before Medicare and up to seven years before full Social Security. That changes the math compared to a traditional age-65 or 67 retirement.

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Quick answer

Most people need $1.2 million to $2 million to retire at 60. The exact figure depends on your annual spending — multiply your yearly expenses by 28–30 to account for the longer retirement horizon.

Why retiring at 60 costs more than retiring at 65

Retiring five years early adds three real costs: five extra years of withdrawals, five years of paying for your own healthcare before Medicare kicks in at 65, and a smaller Social Security check if you claim early.

  • 5 extra years of $50K spending = $250K more needed
  • Private health insurance: roughly $10K–$18K/year per person
  • Claiming Social Security at 62 cuts your benefit by ~30% for life

The numbers by spending level

Using a more conservative 3.5% withdrawal rate (because your retirement may last 30–35 years instead of 25), here's what you'll need at 60:

  • Spend $40K/year → need about $1.15M
  • Spend $50K/year → need about $1.45M
  • Spend $60K/year → need about $1.7M
  • Spend $80K/year → need about $2.3M
  • Spend $100K/year → need about $2.85M
Quick formula

Annual spending × 28 = your retire-at-60 number. Use × 30 if you're in great health and expect to live into your 90s.

Bridging the healthcare gap (60 → 65)

This is the single biggest curveball for early retirees. Realistic options:

  • ACA marketplace plans with subsidies if your income is modest
  • COBRA from your former employer (18 months max, expensive)
  • Spouse's employer plan if they keep working
  • Part-time job that includes health benefits

Budget $12,000–$18,000 per year per person for unsubsidized ACA coverage in 2025. That's $60K–$90K over the five-year gap for a couple.

Social Security timing

You can claim as early as 62, but every year you delay between 62 and 70 raises your benefit by about 8%. Retiring at 60 doesn't mean claiming at 62 — many early retirees live off their portfolio and delay Social Security to 67 or 70 for a much larger lifetime check.

What income $1.5 million produces

$1.5M at a 3.5% safe withdrawal rate produces about $52,500/year, growing with inflation. Layer Social Security of ~$24,000/year at 67 and total retirement income jumps to roughly $76,500 — comfortable for most households.

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Frequently Asked Questions

Can I retire at 60 with $1 million?

Yes if your annual spending is around $35K–$40K and you're comfortable with a tighter 3.5% withdrawal rate. It's harder if you live in a high-cost area or carry a mortgage.

How much should I have saved by 60 to retire?

Aim for 10–12× your current annual salary by age 60. Fidelity's benchmark of 8× is the minimum to maintain your lifestyle.

Is it smarter to retire at 60 or 65?

Retiring at 65 is meaningfully cheaper because Medicare kicks in and Social Security is much larger. Each extra working year typically adds $100K+ to your usable nest egg.

Should I claim Social Security at 62 if I retire at 60?

Usually no. Delaying to 67 or 70 raises your check by 30–75%. Live off your portfolio first if you can.

What's a safe withdrawal rate at age 60?

Use 3.5% instead of the traditional 4%. Your retirement is likely 5+ years longer than someone retiring at 65.