Quick answer
You can retire at 62, but the trade-offs are real. Claiming Social Security early locks in a smaller lifetime benefit. Three years without Medicare adds healthcare costs. And a 30-year retirement horizon means your portfolio has to work longer. If you have enough savings to bridge expenses and still wait on Social Security, the math usually favors waiting.
Savings targets at age 62
| Annual spending | SS at 62 (~$1,500/mo) | SS at 67 (~$2,200/mo) | No SS offset |
|---|---|---|---|
| $50,000 | $800,000 | $550,000 | $1,250,000 |
| $60,000 | $1,050,000 | $800,000 | $1,500,000 |
| $75,000 | $1,425,000 | $1,175,000 | $1,875,000 |
| $100,000 | $2,050,000 | $1,800,000 | $2,500,000 |
Targets use the 25× rule applied to the spending gap after SS. Claiming at 62 reduces your monthly SS benefit by roughly 30% vs. waiting to full retirement age (67 for most people born after 1960).
Two gaps that change the plan
The Medicare gap (62–65)
Medicare does not start until 65. Three years of ACA or employer-continuation coverage can cost $6,000–$18,000 per year depending on health status, income, and location.
The Social Security trade-off
Claiming at 62 vs. 67 is a lifetime income decision. The break-even age where waiting pays off is typically around 78–80. If you expect to live into your 80s, waiting usually wins.
Should you claim Social Security at 62?
Early claiming makes sense in a few scenarios: you have health issues that reduce life expectancy, you genuinely need the income to avoid depleting savings too fast, or your spouse has a larger benefit and plans to delay. In most other situations, delaying increases lifetime income.
Every year you delay past 62 increases your eventual benefit. Waiting from 62 to 70 can increase the monthly benefit by 70–75% compared to the early-claiming amount. For a married couple, delaying the higher earner's benefit also maximizes the survivor's income for the rest of their life.
If you retire at 62 but delay Social Security, your portfolio bridges the gap. This works well when savings are sufficient — it is often called a "claim later" strategy and can substantially improve late-retirement security.
Compare early vs. delayed SS claiming
Use the advanced calculator to model SS at 62, 65, or 67 and see the difference on your projected balance.
What makes a 62-retirement plan work
The plans that hold up tend to share a few traits: enough taxable or Roth savings to avoid large early IRA withdrawals, a realistic healthcare budget, a Social Security strategy based on health and longevity rather than impatience, and some built-in spending flexibility for down markets.
Withdrawals at 62 are fully penalty-free since the 10% early-withdrawal exception ends at 59½. But pre-tax withdrawals still generate ordinary income — which can affect ACA premium subsidies if income is managed carefully in the 62–65 window. Working with a tax advisor in the first few years can be worth the cost.