Can I Retire at 62? What the Numbers Actually Look Like

62 is the most common retirement age in America. It is also the age with the single most consequential financial decision most retirees face: whether to claim Social Security immediately or wait. The choice made at 62 on that question alone can mean a difference of $100,000 or more in lifetime benefits — and most people make it without running the numbers.

Retiring at 62 is genuinely achievable for a wide range of people. The account access problem largely disappears, the portfolio math is more forgiving than at 55 or 60, and the catch-up contribution window at 60 to 63 gives the final working years unusual leverage. But the Social Security decision looms large, and the health insurance gap is still real.

The Portfolio Math at 62

A retirement at 62 funds roughly 25 to 30 years. That puts you squarely in the range the 4% rule was designed for. Using 4% as the withdrawal rate is reasonable at 62, though 3.75% is a more conservative choice for someone in good health planning for 30-plus years.

At 4%, the required portfolio for $60,000 per year is $1,500,000. For $80,000 it is $2,000,000. For $100,000 it is $2,500,000. These are the standard 25x calculations and they apply reasonably well at this retirement age, unlike at 55 where a lower rate is warranted.

Social Security meaningfully reduces the required portfolio once you account for when it starts. Someone retiring at 62 who plans to claim Social Security at 67 has five years of full-portfolio withdrawals before the benefit begins. After 67, the portfolio only needs to cover the gap. Modeling both phases gives a more accurate required portfolio than applying 25x to total annual spending without the Social Security offset.

The Super Catch-Up Window Closes at 63

One of the most valuable features of retiring at 62 or 63 specifically is that ages 60 to 63 are the super catch-up contribution window for 401ks. In 2026, the super catch-up allows $35,750 in total annual 401k contributions — $11,250 more than the standard catch-up limit available at 50.

For someone planning to retire at 62 or 63, the two to three years of super catch-up contributions available before retirement are among the highest-leverage savings years of an entire career. Maxing the 401k at $35,750 per year from 60 to 62 adds roughly $113,000 in contributions that immediately begin compounding. At 7% for 20 years that grows to about $437,000. Missing those years because you did not know the window existed is an expensive oversight. See how much you should have saved at 60 to see if you are on track heading into this window.

The Social Security Decision at 62

This is the most important financial decision most 62-year-old retirees face, and it deserves more attention than it usually gets.

Claiming Social Security at 62 permanently reduces your benefit by roughly 25% to 30% compared to claiming at your full retirement age of 67. If your full benefit would be $2,400 per month at 67, claiming at 62 gives you approximately $1,680 per month — a $720 per month reduction that lasts for the rest of your life.

The lifetime breakeven — the age at which delaying to 67 produces more total lifetime benefits than claiming at 62 — is typically around age 80. If you live past 80, waiting pays off. If you do not, claiming early produces more total income.

For someone retiring at 62 with a portfolio that can cover five years of expenses without Social Security, the math strongly favors waiting at least until full retirement age — and potentially until 70 if health and portfolio allow. The $720 per month difference between 62 and 67 is $8,640 per year, permanently. Over a 20-year retirement from 67 to 87, that is $172,800 in additional lifetime benefits from waiting five years.

The counterargument for claiming early is real: the money is available now, you might not live long enough for the breakeven to matter, and early retirement years are often when spending is highest. For people in poor health or with a family history of shorter lifespans, early claiming may genuinely be the right decision. But for a healthy 62-year-old, the default should be to model the delay before deciding.

Health Insurance: Three Years Until Medicare

Retiring at 62 leaves three years before Medicare eligibility at 65. This is the shortest health insurance gap of any pre-Medicare retirement age and is manageable for most people.

Three years of individual market premiums at $700 to $1,200 per month runs $25,200 to $43,200 for an individual. For a couple, roughly double. ACA subsidies reduce this for retirees whose income falls within the eligibility range — managing withdrawals to stay within the subsidy window during the three-year gap is worth the effort for most people in this situation.

The three-year gap is short enough that many people bridge it with a combination of COBRA from their final employer (up to 18 months) and marketplace coverage for the remaining 18 months. COBRA is expensive but avoids the underwriting and enrollment complexity of switching to marketplace coverage immediately.

Account Access at 62

Retiring at 62 means all retirement accounts are accessible without penalty — you are past the 59½ threshold. This is one of the cleanest aspects of the 62 retirement scenario compared to earlier ages. No Roth ladder needed, no Rule of 55 required, no bridge strategy beyond having enough cash to cover the period between leaving work and taking the first withdrawal.

Required minimum distributions do not begin until 73, so there is no forced distribution pressure for over a decade. This gives you full control over how much you withdraw each year and from which accounts — which is valuable for tax planning, ACA subsidy management, and Roth conversion opportunities during the early retirement years when income may be low.

Roth Conversions in the Early Retirement Window

The years from 62 to 67 — before Social Security begins — are often a low-income window where Roth conversions make sense. With no employment income and modest portfolio withdrawals, taxable income may be low enough to convert significant traditional IRA or 401k balances to Roth at the 12% or 22% rate.

Converting $50,000 per year from a traditional account to Roth at 22% costs $11,000 in tax. If those funds would otherwise face 32% tax rates in retirement due to large RMDs, the conversion saves $5,000 in taxes on every $50,000 converted. Five years of conversions before Social Security begins can substantially reduce the future RMD burden and improve long-run tax efficiency.

This is a planning opportunity unique to the early retirement window that most people do not take advantage of. The low-income years between leaving work and claiming Social Security are one of the best times in a financial life to do Roth conversions. For more on why traditional vs Roth matters at this stage, see Roth vs traditional: IRA and 401k compared.

What a Realistic 62-Retirement Plan Looks Like

For someone spending $75,000 per year who plans to claim Social Security at 67 at $2,000 per month, the portfolio needs to cover $75,000 per year from 62 to 67 and $51,000 per year from 67 onward.

At 4% on the long-run $51,000 gap, the portfolio needs $1,275,000. Add a buffer for the five years of higher pre-Social Security withdrawals — roughly $125,000 in additional cushion — and a realistic total portfolio target at 62 is approximately $1,400,000 to $1,500,000. That is meaningfully more accessible than the 55 or 60 scenarios and achievable for a significant portion of people who have been saving consistently for 30 or more years. If you are on the fence between 62 and 65, see how much delaying retirement by 2 years actually changes your number.

Running Your Numbers

At NumberToRetire.com, set your retire age to 62 and enter your current balances and contribution rate. Add your expected Social Security as an additional income source in the Additional Income section with a start age matching your planned claiming age — 62, 67, or 70. The projection shows combined monthly income from the portfolio and Social Security at each age, so you can see whether the total covers your expenses and how the picture changes depending on when you claim.