How Much Money Do I Need to Retire at 60, 62, 65 or 67?

The amount you need to retire is the savings required to cover spending that Social Security, pensions, and other income will not cover, for as long as you may live. A target at 60 is usually higher than a target at 67 because the portfolio must last longer and Social Security, if delayed, has not started yet. There is no single dollar figure that fits every household.

A useful retirement number starts with an annual spending estimate, subtracts income you can count on, and then asks what portfolio could support the gap. Investment returns, taxes, and healthcare can change the result by as much as the savings balance itself.

Build the number from spending, not from a headline

Start with a year of ordinary bills: housing, food, transportation, insurance, travel, gifts, and the costs you already know are coming. Then add a cushion for repairs and health costs. Subtract income that does not depend on selling investments. The remainder is what savings may need to provide.

People often quote a multiple of salary, such as 10 or 12 times pay. That can be a checkpoint while you are still working. It is a weak final answer, because two people with the same salary can have very different pensions, debts, and lifestyles. Spending is the cleaner input.

Why 60, 62, 65, and 67 are different problems

Retirement age	What usually changes
60	Social Security has not started. Medicare generally has not started. Savings and any work income may cover every dollar for several years.
62	Social Security can start, often at a reduced monthly amount. Medicare still may be several years away if you are not yet 65.
65	Medicare eligibility commonly begins. Social Security may still be before full retirement age for people born in 1960 or later.
67	For many people born in 1960 or later, this is full retirement age for Social Security. The portfolio has had more years to stay invested, and the monthly benefit is not reduced for early claiming.

Those ages are planning landmarks, not instructions. Some people should claim earlier or later than full retirement age. The Social Security Administration publishes the rules for early and delayed benefits. Medicare eligibility is explained on Medicare.gov. If you retire at 60, budget for health coverage until Medicare and for several years of spending before a Social Security check arrives, unless you claim a benefit you are not yet eligible for — which you cannot.

A simple illustration, with the assumptions written down

Suppose a household wants $70,000 a year in spending, measured in today's dollars. At 67 they expect $32,000 of Social Security. The portfolio gap is about $38,000. Using a 4% first-year withdrawal only as a sketch, $38,000 is 4% of $950,000. That is not "the" number. If they retire at 60 and receive no Social Security for seven years, the early years might require the portfolio to cover most of the $70,000, which points to a larger balance or a lower budget. If markets are weak or taxes take a slice of each withdrawal, the savings target moves up.

The same household looking at retirement at 65 with $1 million might find that the balance is enough only after Social Security starts. Someone asking how long the money will last is really asking whether the gap stays affordable for 25 or 35 years.

Tradeoffs that change the target

• Working two or three more years can add savings, delay withdrawals, and raise a later Social Security benefit.
• Spending $10,000 less per year can shrink the required portfolio by far more than $10,000, because that reduction repeats for decades.
• Paying off a mortgage can lower the spending target, but it also uses cash you might have invested.
• Taxes depend on which account you withdraw from. A pretax balance has a future tax bill inside it. A Roth balance often does not.

Common mistakes

Copying a friend's number is the most common error. So is forgetting inflation, counting home equity as spending money, and assuming both health costs and investment returns stay smooth. Another miss is planning only to age 85 when one spouse has parents who lived into their 90s. Longevity risk is the chance that life, happily, lasts longer than the plan.

What this means for your retirement plan

Write down the age you hope to leave full-time work, the spending that age requires, and the income that is already promised. The savings target is what remains. Revisit it when a job, a pension estimate, or a housing plan changes. The order of withdrawals, covered in which retirement account to draw from, changes how much of each saved dollar you actually get to spend.

Analyze your retirement scenario using your own savings, Social Security, spending and retirement age.

Frequently asked questions

How much do I need to retire at 62?

Often more than at 67, because the monthly Social Security benefit is lower if you claim early and the savings must cover more years. The right figure is your spending gap, not a national average.

Is a multiple of my salary a good retirement target?

It is a rough checkpoint during your working years. Near retirement, replace it with your own spending and expected income. Salary multiples hide pensions, debts, and very different lifestyles.

Should I include Social Security in my number?

Yes, as income that reduces the gap, using an estimate you have checked. Do not treat an online guess as a final benefit. Your Social Security Statement is the better source.

What if I want to retire at 60?

Plan for health coverage before Medicare and for spending before Social Security eligibility. Those bridge years are often the reason a 60-year-old target is higher than a 65- or 67-year-old target with the same lifestyle.

Related reading

• Can I retire at 65 with $1 million?
• How long will my money last in retirement?
• What is a sensible retirement withdrawal order?

This article is educational, not a personal savings target or tax advice. Benefit rules depend on your earnings record and birth year. Check SSA.gov and Medicare.gov for the rules that apply to you.