Can I Retire at 62?

How much do you need to retire at 62?

A 62-year-old planning to age 90 faces a 28-year retirement horizon — close to the 30-year window the classic 4% rule was calibrated for. Planning to age 95 extends that to 33 years. The safe withdrawal rate that has historically succeeded across 95%+ of rolling historical periods for 30-year retirements is approximately 3.5%; for 33-year horizons, 3.3–3.5% is the appropriate anchor.¹

The math improves significantly once Social Security is layered in. A couple with $4M who draws 4.0% initially — $160,000/year — drops to a roughly 2.0–2.5% effective portfolio draw once combined Social Security starts at 70, contributing $84,000–$124,000/year. The first 5–8 years (before SS) are the critical window: this is when the portfolio is working hardest and sequence-of-returns risk is highest.

The defining decision at 62: Social Security now or later?

No other retirement age creates this specific tension. At 60, Social Security is two years away — a future planning item. At 62, it's available today. The IRS paperwork is waiting. And the psychological pull of "I've earned this" is real.

Here's the math for someone with a full-career earnings history, born 1960 or later (FRA = 67):²

Claiming at 62 versus waiting to 70 means collecting $2,254 more per month for the rest of your life — a 77% permanent increase — by waiting 8 years. Break-even is approximately age 80.4: if you live past 80, delay wins every year thereafter. A healthy 62-year-old couple has roughly a 50% chance that at least one partner reaches 88–90.¹ On that timeline, delay to 70 is typically the correct choice for the higher earner.

When claiming at 62 does make sense:

• Documented serious health condition with life expectancy below average — if you're unlikely to live past 78–80, early claiming is rational
• Lower-earning spouse claiming at 62 while higher earner delays to 70 — this can optimize combined lifetime household benefits
• Portfolio is at the edge of viability and you genuinely need the income to fund living expenses

For most healthy 62-year-olds with $2M+, delay is the stronger choice. You don't need the income. What you need is the largest possible inflation-indexed, survivor-protected lifetime income floor. Every year of delay past 62 is essentially purchasing a guaranteed, inflation-indexed annuity at an internal rate of return of 6–8% — a rate no bond or CD can match.²

Gap #1: Three years of self-funded healthcare (ages 62–65)

Medicare eligibility begins at 65. Retire at 62 and you have three years to bridge — the shortest pre-Medicare gap of any early retirement age, and substantially more manageable than the five years at 60 or ten years at 55. Still, healthcare costs at 62 are near their ACA-market peak: insurers can rate older enrollees up to 3× the young-adult baseline, and 62-year-olds are near the top of that scale. A benchmark Silver plan for a 62-year-old couple runs $2,400–$3,200/month in most states in 2026 — $28,800–$38,400/year before deductibles and out-of-pocket costs.³

Two options can significantly reduce this cost:

COBRA as a bridge. If you leave an employer with group coverage, COBRA extends that coverage for up to 18 months at full premium cost. For the first 18 months of retirement, employer-sponsored coverage often beats ACA marketplace rates, especially if your former employer's group plan included comprehensive coverage. After 18 months, transition to the ACA marketplace for the remaining 18 months until Medicare at 65.

ACA subsidy management. Premium subsidies reduce costs sharply if you keep Modified Adjusted Gross Income (MAGI) below 400% of the federal poverty level — approximately $84,600 for a 2-person household in 2026.⁴ The enhanced premium tax credits that temporarily removed the income cap expired at year-end 2025, so the 400% FPL cliff is back for 2026. Keeping MAGI below $84,600 can yield $12,000–$20,000/year in subsidies — but this requires carefully managing Roth conversions, capital gain realizations, and IRA distributions to stay below the threshold.

The compressed three-year window is actually an advantage here. Managing MAGI carefully for 3 years is far less complex than doing so for 5 or 10 years. That said, if you're also executing a Roth conversion strategy (you should be), the ACA/Roth tradeoff requires active planning in each of those three years.

Penalty-free access to all retirement accounts

Past age 59½, every retirement account — traditional IRA, Roth IRA, 401(k), 403(b) — is fully accessible without the 10% early withdrawal penalty. A 62-year-old has none of the access constraints that complicate early retirement at 55:

• No Rule of 55 mechanics needed (the rule already expired for you three years ago)
• No 72(t) SEPP schedule required — you can take any amount, any year, from any account
• No Roth conversion ladder needed just to access funds tax-free — access to contributions has been penalty-free since you turned 59½

This full flexibility means your withdrawal strategy is pure tax optimization, not access management. You choose which account to draw from each year based on tax bracket management, IRMAA planning, and Roth conversion opportunities — not based on which buckets are legally accessible.

The Roth conversion window: 62–73/75 (11–13 years)

For a 62-year-old with a large traditional IRA or 401(k), the window from retirement to the start of RMDs is one of the most valuable tax planning periods in a financial life. Earned income is gone; Social Security isn't started (assuming you delay to 67–70); and RMDs are over a decade away. This creates 11–13 years where you can convert traditional IRA dollars at today's brackets instead of tomorrow's higher forced-distribution brackets.⁵

A $3M traditional IRA at 62, growing at 6% without conversions, reaches approximately $6.0M by age 75 — triggering roughly $238,000 in year-one mandatory RMDs on top of Social Security income. At $200,000/year of SS (combined couple at age 70) plus $238,000 in RMDs, you're looking at $438,000 of taxable income at 32–37% marginal rates plus IRMAA surcharges that can add $200–$400/month per person to Medicare costs.

Converting $100,000–$140,000/year from age 62 to 75 at 22–24% eliminates the bulk of that future forced income. The lifetime tax difference for a couple in this situation is typically $300,000–$700,000, depending on portfolio size, investment return, and state taxes. The key variables to optimize each year:

• Fill the 22% bracket ($96,950–$201,050 MFJ in 2026⁶) — this is almost always worth doing in low-income retirement years before SS starts
• ACA subsidy tradeoff (ages 62–65) — conversions above $84,600 MAGI eliminate ACA premium subsidies. In some years the subsidy value ($15,000–$20,000) exceeds the conversion tax benefit; in others it doesn't. Model this specifically each year.
• IRMAA lookback — conversions in 2026 affect Medicare premiums in 2028. Plan with the two-year lag in mind.⁷
• Coordinate with Social Security timing — once SS starts, up to 85% is ordinary income, pushing MAGI up and reducing available bracket space for conversions

Retirement calculator: year-by-year projection from age 62

Five retirement risks to plan for explicitly at 62

1. The Social Security claiming mistake is irreversible. If you claim at 62 and regret it, there is a one-time "withdrawal of application" option within 12 months — but it requires repaying every dollar received. After 12 months, claiming is permanent. The most common expensive mistake for financially comfortable 62-year-olds is claiming early because the income feels useful, only to realize at 75 or 80 that the permanent reduction costs significantly more in annual income than they needed at 62.
2. Sequence-of-returns risk is most acute in years 1–8. A severe market correction in the first five years of retirement — before Social Security provides a guaranteed income floor — can permanently impair a plan that would otherwise survive. Maintain 3–5 years of living expenses in cash or short-duration bonds: a $120,000/year spender needs $360,000–$600,000 set aside, so you're not forced to sell equities at depressed prices.
3. The ACA income cliff in years 62–65. Three years of managing MAGI below $84,600 for a couple to capture ACA subsidies can be worth $40,000–$60,000 in total subsidy value. But this ceiling conflicts directly with Roth conversion strategy and capital gain harvesting. Model the ACA/Roth tradeoff explicitly for each year — the optimal answer changes based on your conversion backlog, expected SS income, and the size of the subsidy on offer.
4. IRMAA surcharges starting at Medicare age. Aggressive Roth conversions between 62 and 65 raise MAGI in 2026 and 2027, which feeds into IRMAA calculations for 2028 and 2029 Medicare premiums — starting right when you enroll at 65. A couple with $200,000 in 2026 MAGI from Roth conversions could face first-tier IRMAA surcharges of $74/month per person on Medicare Part B, plus Part D surcharges — around $2,000/year. This doesn't mean stop converting; it means optimize conversions with IRMAA lookback in mind.
5. Longevity planning for a 33-year horizon. A healthy 62-year-old planning to age 95 needs a portfolio that lasts 33 years. That's longer than many 62-year-olds intuitively plan for. The sequence-of-returns risk, healthcare inflation (4–6%/year historically), and the long-term care uncertainty all compound over a 33-year horizon in ways that don't show up in a simple "will my money last to 90?" calculation.

Retiring at 62 vs. waiting to 65: what those three years cost and buy

For people approaching 62 who could push to 65, the specific trade-offs:

• Healthcare: $100,000–$170,000 in savings. Three more years of employer coverage (even COBRA) versus self-funding the full Medicare gap. The financial value of employer group coverage for a couple is typically $34,000–$56,000/year — so working to 65 "buys" Medicare eligibility, and the premium savings are real and large.
• Social Security at 65 vs. 62: ~24% higher benefit. Claiming at 65 (86.7% of FRA) versus 62 (70% of FRA) means 23.9% more monthly income for life. If you were going to claim at 65 anyway, waiting to retire until 65 — while continuing to earn — is more financially compelling than retiring at 62 and starting SS at 65 from a depleted portfolio.
• Three more years of contributions at peak earnings. For business owners or high earners, three more years of solo 401(k) deferrals ($24,500 base, $35,750 with super-catch-up at ages 60–63⁶), cash balance plan contributions, or direct portfolio growth can add $300,000–$700,000 after tax at this income level.
• The cost: three years of your highest-energy retirement years. For people in excellent health with $4M+, the purely financial incremental benefit of working from 62 to 65 is real but not transformational. The non-financial cost — three prime years of retirement — is the variable that matters most for many people. A fee-only planner can model both scenarios with your specific numbers so you can make the decision with eyes open.

Checklist: what to verify before retiring at 62

• ✓ Portfolio is at least 25–28× annual spending — supports a 3.5–4.0% draw rate over a 28–33-year horizon with Social Security layering in later
• ✓ Social Security claiming strategy is final for both spouses — particularly the higher earner's delay plan (to FRA or 70), and how spousal/survivor benefits optimize the household total
• ✓ Healthcare bridge plan: COBRA for 18 months, then ACA marketplace with explicit MAGI management for the remaining 18 months until Medicare at 65
• ✓ ACA income management plan: which years allow subsidies (MAGI < $84,600 couple), which years trade that off for Roth conversions, and which years harvest capital gains in the 0% bracket ($98,900 MFJ in 2026⁶)
• ✓ Roth conversion plan mapped for ages 62–73/75: annual conversion target by bracket, coordinated with ACA subsidy years and SS start date
• ✓ IRMAA lookback modeled: Roth conversions at 62–63 affect Medicare premiums at 64–65. Coordinate conversions so your first Medicare premiums aren't immediately at a surcharge tier
• ✓ RMD projection: how large will mandatory distributions be at 73 or 75, given current traditional IRA balances and projected 11–13 years of growth?
• ✓ Sequence-of-returns buffer funded: 3–5 years of living expenses in cash or short-term bonds, held outside the equity portfolio
• ✓ Long-term care plan evaluated while still insurable at preferred rates — a 62-year-old typically qualifies for better rates than a 65-year-old
• ✓ Estate plan reviewed: beneficiary designations, trust structure, and OBBBA $15M federal estate exemption context all updated
• ✓ State tax situation reviewed — if you're in CA, NY, or NJ, and retirement takes you well below your peak income, a domicile change before retiring can eliminate years of top-rate state tax on conversion income
• ✓ Super-catch-up contributions used: the ages 60–63 super-catch-up allows $35,750/year (vs. $32,500 at 50–59) in 401(k) deferrals in your final working years — use this before you retire

Get matched with a fee-only retirement planning specialist

Retiring at 62 involves more financially consequential decisions than almost any other retirement age: whether to claim Social Security now or potentially leave hundreds of thousands of dollars on the table; how to coordinate three years of ACA coverage against a Roth conversion backlog worth managing; and how to run a portfolio for 30+ years without the guaranteed income floor that doesn't arrive until 67–70. Fee-only advisors who specialize in pre-Medicare early retirement at the $2M–$10M level — people who can model the SS break-even for your specific earnings history, size your Roth conversion window against IRMAA lookback constraints, and build a year-by-year income strategy — typically earn their first-year fee many times over in the first year alone.

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Sources

1. Kitces: Safe Withdrawal Rate Research (Bengen & Trinity Study). William Bengen's foundational 1994 SAFEMAX research established the 4% rule for 30-year retirements at a 60/40 allocation. The Trinity Study (Cooley, Hubbard & Walz 1998) extended analysis across rolling 30-year historical periods; at 3.5% with inflation-adjusted spending, historical success exceeds 95% of periods. For 28-year horizons (retiring at 62 to age 90), the safe rate is marginally higher than for 30 years. A 2015 Society of Actuaries study found that a healthy couple at 62 has roughly 50% probability that at least one partner reaches 88–90+.
2. SSA: 2026 Social Security Benefit Data. Maximum monthly SS benefit at FRA (age 67) in 2026: $4,152. Maximum at age 70 with full delayed retirement credits: $5,181. Benefit at age 62 (earliest claim, for workers with FRA of 67): approximately 70% of FRA benefit — a permanent 30% reduction applied as 5/9 of 1% per month for the first 36 months early, then 5/12 of 1% per month for remaining months. Delayed retirement credits: 8%/year for each year past FRA up to age 70. Benefits are inflation-indexed (COLA) annually. Break-even calculation between age 62 and age 70 claim is approximately age 80.4, depending on discount rate assumptions.
3. KFF: Health Insurance Marketplace Calculator (2026). ACA marketplace premiums for a 62-year-old couple in 2026: $2,400–$3,200/month on a benchmark Silver plan in mid-cost states, before premium tax credits. ACA law permits age rating of up to 3× the premium for a 21-year-old — 62-year-olds are at or near the top of the rating curve. Out-of-pocket maximum in 2026 for marketplace plans: $9,450/individual, $18,900/family.
4. HHS ASPE: 2025 Federal Poverty Guidelines. 2025 HHS poverty guidelines used for 2026 ACA marketplace coverage: $21,150 for 2-person household. 400% FPL = $84,600. The enhanced premium tax credits (American Rescue Plan/Inflation Reduction Act, 2021–2025) that temporarily removed the income cap expired at end of 2025; the subsidy cliff returned for 2026 coverage. Households above 400% FPL receive no ACA premium tax credit.
5. IRS: SECURE 2.0 — RMD Age Changes. SECURE 2.0 Act (2022), IRC §401(a)(9) as amended: RMD beginning age is 73 for individuals born 1951–1959, and 75 for individuals born 1960 or later. A 62-year-old born in 1963 or 1964 has 11–13 years before RMDs begin, depending on birth year. Roth 401(k) accounts are exempt from lifetime RMDs starting 2024 (SECURE 2.0 §325).
6. IRS: 2026 Retirement Plan Limits (IRS Rev. Proc. 2025-32). 2026 401(k) elective deferral limit: $24,500. Age 50+ catch-up: $8,000 (total $32,500). Ages 60–63 super-catch-up (SECURE 2.0 §109): $11,250 (total $35,750). 2026 MFJ income tax brackets: 22% on $96,950–$201,050; 24% on $201,050–$383,900. LTCG 0% bracket for MFJ filers: $98,900. Standard deduction MFJ: $32,200. All per IRS Rev. Proc. 2025-32.
7. Medicare.gov: IRMAA 2026 Income-Related Adjustment. IRMAA surcharges for Medicare Part B and Part D are based on MAGI from two years prior. A Roth conversion in 2026 affects Medicare premiums starting 2028. 2026 Part B base premium: $185.00/month. First IRMAA surcharge threshold for MFJ filers: $212,000 MAGI (adds $74.00/month per person). Planning Roth conversions at 62–64 without modeling the 2-year IRMAA lag means paying unnecessary surcharges starting at Medicare enrollment at 65.

Safe withdrawal rate success rates are based on historical U.S. equity and bond market data — future returns may differ. SS maximum benefits verified against SSA 2026 data. SS reduction at age 62 per SSA rules for FRA of 67 (born 1960+). ACA 400% FPL cliff based on HHS 2025 poverty guidelines; enhanced subsidies expired end-2025. Healthcare cost estimates are illustrative — actual premiums vary by state, age, plan, and income. RMD ages per SECURE 2.0 (IRC §401(a)(9) as amended). IRMAA tiers from Medicare.gov 2026 data. 2026 MFJ tax brackets per IRS Rev. Proc. 2025-32. Super-catch-up per SECURE 2.0 §109. Content verified June 2026. Consult a licensed financial planner and CPA for your specific situation.