Calculate how much you need to retire at 60. 25x rule, healthcare bridge, and Social Security strategy for 2026.
Assumes constant return rate. Does not account for inflation, taxes, or Social Security. For illustrative purposes only.
Retiring at 60 gives you a 5-year advantage over retiring at 55 — more time for compounding, more Social Security contributions, and a shorter healthcare gap before Medicare begins at 65. Most financial planners still recommend the 25x rule as a baseline: if you'll spend $75,000/year in retirement, target $1.875 million in savings.
At 60, you're still 2½ years away from the earliest Social Security eligibility at 62. Many retirees at 60 choose to live off savings until 67 or 70 to maximize their lifetime Social Security benefit. If you can delay Social Security to 70, benefits increase by 8% per year beyond full retirement age — a powerful longevity hedge.
Healthcare bridging from 60 to 65 is critical but more manageable than retiring at 55. ACA marketplace plans remain the primary option. At lower income levels in retirement, ACA subsidies can dramatically reduce premiums — some early retirees with carefully managed income pay very little for quality coverage.
Sequence-of-returns risk is significant in the first decade of retirement. A major market decline in the first five years of drawing down a portfolio can permanently damage its longevity. The classic solution is a bond-and-cash buffer — keeping 3–5 years of spending in lower-risk assets so you're not forced to sell equities at depressed prices.
The 4% withdrawal rule (spending 4% of your portfolio in year one, adjusting for inflation thereafter) has historically survived 30-year retirements. For a 60-year-old with potentially 35 years ahead, some advisors suggest a more conservative 3.5% rate to ensure the portfolio lasts.
Using the 25x rule: multiply your planned annual spending by 25. A $70,000/year lifestyle requires $1.75 million; $90,000/year requires $2.25 million. Add a 10–15% buffer for healthcare and unexpected expenses before Medicare begins.
The 4% rule was designed for 30-year retirements. Retiring at 60 with a 35+ year horizon makes some planners recommend 3.5% instead. At a $2 million portfolio, that's $70,000/year ($5,833/month) as a sustainable withdrawal. Adjust based on your risk tolerance and other income sources.
Only if you need the income. Taking Social Security at 62 permanently reduces your benefit by about 30% compared to waiting until full retirement age (67). Every year you delay past 67 adds 8% until age 70. If you can live off savings from 62–70, delaying often maximizes lifetime income.