Savings needed to retire at 60
| Yearly spending | Needed (this page's model) | 25× shortcut (no Social Security) |
|---|
| $40,000 | $574,366 | $1,000,000 |
| $50,000 | $807,968 | $1,250,000 |
| $60,000 | $1,041,570 | $1,500,000 |
| $80,000 | $1,508,774 | $2,000,000 |
| $100,000 | $1,975,978 | $2,500,000 |
Assumptions: 5% return and 2.5% inflation (2.4% real), money lasting to 95, an illustrative Social Security benefit of $2,000/mo at full retirement age, claimed at 62 ($1,400/mo), with savings covering all spending from 60 to 62. Pre-tax figures.
Run my own numbers
Why retiring at 60 changes the number
Retiring at 60 means 2 years before Social Security can start at all, so savings carry the full load at first. It also means funding a 35-year retirement, longer than the 30 years the 4% rule was tested for, which is why a 3.5–4% withdrawal rate is the safer starting point.
Each extra year of work adds a year of saving and growth and removes a year of spending, so moving the date by two or three years often shifts the target by six figures. See it on the retirement calculator's "+2/+3/+5 years" buttons.
Other retirement ages
Questions people ask
How much do I need to retire at 60?
A common shortcut is 25 times the yearly spending your savings must cover (the 4% rule). Retiring at 60 means funding about 35 years to age 95, so many planners use a 3.5–4% withdrawal rate instead. Spending $60,000 a year with no Social Security until 62 needs roughly $1.04M under the assumptions on this page.
Can I retire at 60 with $1 million?
At a 3.5 withdrawal rate, $1 million supports about $35,000 a year from savings. Add Social Security (from 62 at the earliest) and many people can cover $55,000–$70,000 a year of spending. Run your own numbers in the retirement calculator.
What about health insurance before 65?
Medicare starts at 65, so retiring at 60 means 5 years of private cover. ACA marketplace plans with income-based subsidies are the usual route; include premiums and out-of-pocket costs in your spending figure.
When can I withdraw from retirement accounts without penalty?
From 59½ withdrawals from 401(k)s and IRAs carry no 10% penalty. Required minimum distributions start at 73 or 75.