Most of us think of a certain time in our lives when we hear the phrase “retirement age.” More precisely, we think of what’s become the “standard” retirement age, which is 65-years-old. However, it has become increasingly rare that every senior hitting the age of 65 decides to retire then. Some older adults choose to delay a few years, while others may even decide to retire early.
People are actually retiring at 62, which is three years earlier than the normal retirement age in the US. What’s the deal with this popular way of retiring early these days? Are there any pros to doing it this way? If you’re thinking about it, you may already know that the cons include getting less Social Security and not having as much time to save money. But here are some advantages to retiring early, at 62.
Dreaming about retiring at 62? You’re definitely not alone! The average retirement age in America actually hovers around 62, despite many financial advisors pushing for later retirement dates. I’ve been researching this topic extensively, and there’s a lot to consider before making this life-changing decision.
When I talk with friends about retirement, the conversation always circles back to the same question: “Is 62 too early to retire?” The answer isn’t simple – it depends on your unique situation. Let’s dive into the reasons why retiring at 62 might be the perfect choice for you, and what you should consider before taking the leap.
Why People Choose to Retire at 62
Health and Wellbeing Benefits
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You’ll stay healthier longer—letting go of a physically demanding or stressful job can help you stay healthy. About 50. 3 percent of workers over 50 have jobs that are physically demanding, and 54 According to the OECD Employment Outlook study, only 2% of workers are exposed to environmental hazards. Getting out early could literally save your health!.
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More time to enjoy retirement – Let’s be honest – nobody wants to finally retire only to face health issues that prevent them from doing what they’ve always dreamed of The stress of work can actually contribute to health problems, so retiring early might help you remain healthier longer
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Time becomes more valuable than money – As we get older, we realize that time is our most precious resource By retiring at 62, you reclaim those valuable years to spend on what truly matters – family, passions, travel, and personal growth
Financial Considerations
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You might have saved enough already – Surprisingly, it’s possible to over-prepare for retirement! If you’ve been diligent with your savings and investments, you might already have more than enough to support your retirement lifestyle.
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Opportunity to simplify your life – Retirement offers a chance to prioritize what’s truly important and let go of the rest. This can lead to reduced spending levels, which means your retirement savings can stretch further.
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Freedom from the rat race: If you have no or little debt and enough money saved for retirement, there’s not much reason to keep working if you don’t want to. You’ve worked hard to get to this point in your life.
New Opportunities
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Follow your dreams and passions. Is there something you’ve always meant to do but never had the time? Maybe writing a book, joining a community theater group, or starting your own small business. If you retire at 62, you’ll have many years to realize these goals.
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Learn new things – Early retirement offers the perfect opportunity to expand your knowledge through formal education or self-directed learning. Adult students typically perform better than their younger counterparts, and learning keeps your mind sharp.
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Time for meaningful activities – Whether it’s volunteering, mentoring, or pursuing creative hobbies, retiring at 62 gives you more years to engage in activities that bring purpose and joy to your life.
Important Considerations Before Retiring at 62
Before you hand in your resignation letter, there are some critical factors to consider:
Social Security Implications
The biggest financial consideration is how early retirement affects your Social Security benefits. Here’s what happens if you claim at 62:
- Benefits are permanently reduced by up to 30% compared to waiting until full retirement age (currently 67 for those born in 1960 or later)
- Smaller cost-of-living adjustments in the future
- Earnings limits apply – In 2025, if you work while claiming early benefits, Social Security deducts $1 for every $2 you earn above $23,400
However, about 45.7% of men and 54.3% of women still collected Social Security between the ages of 62 and 69 in 2024, according to the Social Security Administration. So clearly, many people find the trade-off worthwhile.
Healthcare Coverage
One of the hardest things about retiring at age 62 is making sure you have health insurance. You won’t be able to get Medicare until you turn 65, so you’ll have to make up those 3 years. Options include:
- COBRA coverage from your former employer (usually expensive)
- ACA marketplace plans
- Health share programs
- Private insurance
The cost of these options can be significant, so make sure to factor healthcare expenses into your retirement budget.
Financial Readiness
Before retiring at 62, ask yourself these questions:
- Have you paid off major debts like your mortgage?
- Do you have sufficient emergency savings?
- Have you calculated your expected monthly expenses in retirement?
- Will your retirement savings, investments, and eventual Social Security benefits cover these expenses for potentially 30+ years?
Making the Decision: Is 62 Too Early for YOU to Retire?
The decision to retire at 62 is deeply personal. Here’s a simple framework to help you decide:
Good Reasons to Retire at 62:
- You have health issues that make working difficult
- Your job is physically demanding or highly stressful
- You have clear goals and plans for your retirement years
- You’re financially secure with multiple income sources
- You’re debt-free or close to it
- You have a plan for healthcare coverage until Medicare kicks in
Reasons to Consider Waiting:
- You need to save more for a secure retirement
- You enjoy your work and it gives you purpose
- You want to maximize your Social Security benefits
- You rely on employer-provided health insurance
- You have significant debt to pay off
- You haven’t fully planned what you’ll do in retirement
How to Make Early Retirement Work
If you’ve decided that retiring at 62 is right for you, here are some strategies to make it successful:
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Create a detailed budget – Know exactly what you’ll spend in retirement and where the money will come from.
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Consider working part-time – A “bridge job” or part-time work can ease the transition and supplement your income.
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Delay Social Security if possible – If you can afford to retire at 62 but delay claiming Social Security until full retirement age or even age 70, you’ll maximize those benefits.
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Develop a withdrawal strategy – Work with a financial advisor to determine the optimal way to withdraw from your retirement accounts to minimize taxes and make your money last.
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Stay active and engaged – Retirement isn’t about doing nothing – it’s about having the freedom to do what you want! Develop hobbies, volunteer, stay physically active, and maintain social connections.
Real-Life Perspectives
I’ve talked with many retirees who took the plunge at 62, and their experiences vary widely. John, a former construction worker, told me: “My body couldn’t take the physical strain anymore. Retiring at 62 was the best decision I ever made – I finally have time for fishing and my woodworking shop.”
Meanwhile, Sarah, a retired teacher, shared: “I worried about retiring ‘too early,’ but realized I had saved enough and wanted time to travel while I was still healthy. Three years in, and I have zero regrets!”
The Bottom Line: Is 62 Too Early to Retire?
So, is 62 too early to retire? The simple answer is: it depends on your unique circumstances. For many Americans, 62 represents the perfect balance between enjoying a lengthy retirement while still having the financial resources to support it.
If you’ve planned carefully, saved diligently, and have a clear vision for your retirement years, then 62 might be the perfect age to begin this exciting new chapter of life. After all, retirement isn’t just about leaving work behind – it’s about gaining the freedom to live life on your own terms.
Have you been thinking about retiring at 62? What factors are most important in your decision? I’d love to hear your thoughts and experiences in the comments below!
Remember: This article provides general information and shouldn’t replace personalized financial advice. Everyone’s situation is different, so consider consulting with a financial advisor before making major retirement decisions.
It’s Great if You’re Ready to Simplify Your Life
You don’t have to live a simple, uncluttered life once you retire. At the same time, doing so can be a major draw if you’ve been running the rat race for decades and you’ve accumulated way too much stuff. It’s a good idea to simplify things like your spending if you want to retire early. This will help you get more out of your savings and give you a great sense of freedom.
You Have the Chance to Enjoy it Longer
No one wants to finally get to retirement only to not be able to relish in the full pleasure of it, such as having health issues that prevent long-desired travel. Retiring early gives you more time to live the retirement life you’ve always dreamed of, be that pursuing hobbies, seeing the world, spending time with grandkids, or absolutely anything else you want.
Compounding this is that the stress of work can actually contribute to health issues, so if you stop working sooner, you may remain healthier longer. No longer having to work means you have time to work on yourself!.
THIS Is the Perfect Age to Retire (Backed by Data) — And the #1 Mistake to Avoid
FAQ
Is retiring at 62 a good idea?
Retiring at 62 can be a good idea if you are financially prepared with sufficient savings and other income sources, have a clear vision for your retirement lifestyle, and can manage the challenges of a longer retirement period, potential healthcare gaps before Medicare at 65, and reduced Social Security benefits.
How much money is needed to retire comfortably at age 62?
To retire comfortably at age 62, you usually need a lot of money saved up—maybe 10 to 14 times your yearly salary before retirement, or a portfolio worth about $1 million. 2 million to $1. 6 million, depending on your desired spending and income sources like Social Security. A common guideline is the 4% rule, which suggests withdrawing 4% of your savings annually.
How much money will I lose if I retire at 62 instead of 65?
If you retire at age 62 instead of 65, you will lose some of your Social Security benefit. The exact amount you lose will depend on your full retirement age (FRA). If you were born in 1960 or later, your FRA is 67, which means that retiring at age 62 could lower your monthly benefit by up to 30% for life.
What is the first reason to take Social Security at 62?
You need to cover expenses and get out of debt
Your current living expenses may surpass your Social Security benefit amount, so you decide to take your benefits early because you can’t wait for a larger payout later. Or, you’re drowning in debt, and taking benefits now will help.
Should you take Social Security at 62?
Taking Social Security at age 62 can make sense for retirees with health issues. If you’re done working for good and do not expect to earn above the annual limit for Social Security earnings, taking benefits early can help cover living expenses.
Should I retire at 62?
Many people retire at 62 because that’s the earliest you can collect Social Security retirement benefits. But just because you can claim monthly benefits at 62 doesn’t always mean you should. Social Security pays 100 percent of the benefit calculated from your lifetime earnings history if you claim it at full retirement age.
Are there’spikes’ in retirement age data at 62 and 65?
There are “spikes” in the retirement age data at ages 62 and 65. Some psychologists argue that early Social Security eligibility at age 62 and perception of “normal” retirement age at 65 serve as reference points that influence peoples’ decisions to retire at these ages. (Knoll, 2011)
Do Social Security benefits go down if you retire at 62?
Benefits are permanently reduced The earliest age you can start taking Social Security retirement benefits is 62. But, your Social Security benefits are reduced by 30% if you retire at 62. That means you will receive just 70% of your full retirement benefit every month for the rest of your life.
What happens if you reach full retirement age?
If you reach your full retirement age during the year, Social Security deducts $1 from benefits for each $3 earned over $62,160 until you turn the full retirement age. Although you will get your money back after you reach full retirement age, you won’t have as much to spend in the meantime.
Is retirement age increasing?
Incorrectly Anticipating Retirement Age After a steady decrease over the previous 35 years, retirement age for men has been rising since 1996. The average age of retirement for women has been increasing since the early 1960’s.