Can I retire at 60?

Retiring at 60 is structurally easier than retiring at 55. You face only a 5-year gap before Medicare, Social Security is within 2-7 years of claim depending on your strategy, and the Rule of 55 isn't a concern. RetireWise can tell you, for your specific savings and spending, whether 60 works, and how it compares to 62 and 65.

The short answer

  • Retiring at 60 typically requires 5 years of self-funded health insurance until Medicare at 65.
  • You can take distributions from any 401(k) or IRA without the 10% early-withdrawal penalty starting at 59½, so the Rule of 55 is irrelevant.
  • Social Security is still 2-10 years away depending on claim age (62-70). Most 60-retirees delay to 67 or beyond.

What you'll need

  • Portfolio that funds 5 years of pre-Medicare expenses plus the gap until Social Security
  • Pre-Medicare healthcare plan (ACA marketplace is most common; the simulator defaults to $18,000/year per person)
  • A Social Security claim-age strategy. Many delay to 67 or 70 for a larger inflation-adjusted check.
  • Spending estimate that accounts for the three retirement phases: more travel/discretionary in the go-go years (60-75), less in slow-go years (75-85), more healthcare in no-go years (85+)

How RetireWise handles it

At 60, the early-withdrawal penalty is no longer a worry. You're past 59½, so withdrawals from any retirement account (401(k), IRA, 403(b), Roth) skip the 10% penalty. You still owe ordinary income tax on pre-tax balance withdrawals, but the simulator models that via the effective and state tax rates you enter on the last wizard step.

The 5-year healthcare gap is the dominant cost differentiator between retiring at 60 vs. 65. For a couple, $18,000 per person per year × 5 years × 2 people = $180,000 of healthcare-only spending before Medicare. Tax planning matters here too: keeping modified adjusted gross income (MAGI) below the ACA subsidy cliff can save substantial premium costs.

On Social Security: claiming at 62 locks in a permanently reduced benefit. Claiming at full retirement age (67 for most people) is the default. Claiming at 70 maximizes the inflation-adjusted check. RetireWise runs all four claim ages (62, 65, 67, 70) side-by-side after your main simulation so you can see how each affects success rate and lifetime dollars.

For most people, the question isn't really "can I retire at 60?" It's "what would I have to change about my plan to make 60 work?" RetireWise's scenario comparison shows you how the success rate shifts at 55, 60, 62, and 65, so the tradeoff between earlier retirement and risk becomes visible.

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