For many, retiring at 62 feels like winning the game early. No more alarm clocks, no more meetings, no more pretending you enjoy performance reviews. But before popping the champagne, there are some important financial and lifestyle questions to work through.
While 62 is the earliest age to claim Social Security, that doesn’t automatically mean it’s the right time to step away from work. The truth is, retiring at 62 can be either a brilliant move or a major misstep—depending on your plan.
Here are five key factors to consider when evaluating whether retiring at 62 is the right fit.
1. Can You Actually Afford It—Now and Later?
This is the million-dollar (sometimes literally) question. Retiring at 62 means you’re cutting off years of potential savings and relying on your portfolio for a longer stretch—possibly 30+ years. That’s a long time for your money to last, especially if you’ll be drawing on it before Medicare kicks in at 65 or before Social Security reaches full retirement age.
The earlier you retire, the more stress you place on your nest egg. Make sure your savings, pension, investment income, and other sources can support both your current needs and a long horizon of unexpected expenses.
Bottom line: The math has to work. And not just for today—but for decades.
2. Have You Thought Through Social Security Timing?
Social Security eligibility starts at 62, but claiming benefits early comes with a permanent reduction—up to 30% less than if you waited until full retirement age. That reduction sticks for life.
For someone with a longer life expectancy or a spouse relying on survivor benefits, delaying benefits can have a significant financial upside. On the other hand, if you have health issues or simply need the income, taking Social Security at 62 might still make sense.
Bottom line: Timing Social Security is a personal decision—but one with long-term consequences.
3. What Will You Do About Health Insurance?
One of the most overlooked aspects of early retirement is healthcare. Medicare eligibility begins at 65, which means if you retire at 62, you’ll need to bridge a potentially costly three-year gap.
COBRA coverage, private insurance, or ACA marketplace plans are all options—but they can be expensive. Without employer-subsidized healthcare, premiums and out-of-pocket costs could eat into your retirement budget quickly.
Bottom line: Know your coverage plan and budget for it—healthcare costs can be a retirement killer.
4. Are You Mentally and Emotionally Ready?
Retirement is more than a financial decision—it’s a lifestyle shift. Some people dream of golfing and traveling; others find themselves restless within six months. The social interaction, structure, and sense of purpose that work provides can be hard to replace.
Ask yourself: What will your days look like? How will you stay engaged, challenged, and connected?
Bottom line: If you’re not ready to live in retirement, you may not be ready to retire—even if the math works.
5. What Are You Retiring To?
People often focus on what they’re retiring from—stress, deadlines, office politics. But the most successful retirements are anchored by what you’re retiring to—a lifestyle, a passion project, time with family, a part-time gig.
Having a purpose gives retirement more meaning and can make the transition more rewarding.
Bottom line: Retirement isn’t just an exit—it’s an entrance. Know where you’re headed.
Final Thought
Retiring at 62 can absolutely work—but it shouldn’t be a default decision. It’s a personal milestone that deserves personal planning. If your finances, health coverage, goals, and lifestyle are all aligned, there’s no reason not to enjoy the early start.
But if any piece of the puzzle feels off, take the time to rethink the timeline. Because retiring early might be exciting—but retiring well is what truly matters.