When Can You Retire? A Complete Guide to Retirement Ages

"When can I retire?" is one of the most common financial questions—and there's no single answer. Different retirement milestones kick in at different ages, from penalty-free 401(k) withdrawals to Social Security benefits to Medicare eligibility.

Understanding these key ages helps you plan strategically and avoid costly penalties.

Key Retirement Ages at a Glance

Each age represents a different decision point in your retirement planning.

Social Security Retirement Ages

Full Retirement Age (FRA)

Your Full Retirement Age is when you're entitled to 100% of your Social Security benefit. It depends on your birth year:

For anyone born in 1960 or later, FRA is 67.

Claiming Before FRA

You can claim Social Security as early as age 62, but benefits are permanently reduced:

Example: If your FRA benefit is $2,000/month and you claim at 62, you receive approximately $1,400/month—permanently.

Delaying Past FRA

For each year you delay past FRA (up to age 70), your benefit increases by 8%:

Example: If your FRA benefit is $2,000/month, delaying to 70 gives you $2,480/month—permanently.

💡 Pro Tip: There's no benefit to delaying past 70. Delayed retirement credits stop accumulating.

When to Claim Social Security

Factors Favoring Early Claiming (62-65)

• Need the income now
• Health concerns (shorter life expectancy)
• Allows you to delay retirement account withdrawals
• No other income sources

Factors Favoring Delayed Claiming (67-70)

• Good health and longevity in your family
• Still working and don't need the income
• Spouse may receive survivor benefits (higher benefit helps them)
• Other income sources available
• Want guaranteed inflation-adjusted income

The Break-Even Analysis

If you delay claiming, you receive a higher monthly benefit but miss years of payments. Eventually, the higher payments "catch up."

Example (FRA of 67):

• Claiming at 62: $1,400/month
• Claiming at 67: $2,000/month
• Claiming at 70: $2,480/month

The break-even point between 62 and 67 is approximately age 78.
The break-even point between 67 and 70 is approximately age 82.

If you live beyond these ages, delaying was the better choice financially.

📌 Key Takeaway: For healthy individuals, delaying Social Security usually pays off. But personal circumstances vary—there's no universally "right" answer.

Medicare Eligibility (Age 65)

Medicare—federal health insurance for seniors—begins at age 65, regardless of when you retire.

Important Enrollment Periods

Medicare Parts

If You Retire Before 65

You'll need health coverage to bridge the gap:

• COBRA (expensive—your employer's plan, you pay full cost)
• ACA Marketplace (subsidies based on income)
• Spouse's employer plan
• Private insurance

⚠️ Warning: Health insurance is often the most expensive part of early retirement. Plan for this cost carefully.

Retirement Account Access Ages

Age 59½: The Magic Number

At 59½, you can withdraw from most retirement accounts without the 10% early withdrawal penalty:

You still owe income tax on traditional account withdrawals, just not the 10% penalty.

The Rule of 55

If you leave your employer at age 55 or later, you can access that employer's 401(k) without the 10% penalty.

Requirements:

• You must be 55 or older when you separate
• Only applies to the 401(k) from the employer you're leaving
• Doesn't apply to IRAs or previous employers' 401(k)s

This is useful for early retirees who need bridge income before 59½.

SEPP/72(t) Withdrawals

At any age, you can take Substantially Equal Periodic Payments from retirement accounts without penalty. However:

• Must continue for 5 years or until 59½ (whichever is longer)
• Complex calculations required
• Modifications trigger retroactive penalties

Required Minimum Distributions (Age 73)

Starting at age 73, you must take withdrawals from traditional retirement accounts (traditional IRA, 401(k), 403(b)).

RMD Basics

• When: By December 31 each year (April 1 for first RMD)
• How much: Based on your account balance and IRS life expectancy tables
• Penalty for missing: 25% of the amount you should have taken

Accounts Subject to RMDs

💡 Pro Tip: Roth conversions before RMDs begin can reduce future required distributions and provide tax-free income.

Early Retirement Considerations

Financial Requirements

To retire before traditional retirement ages, you need:

Income sources:

• Taxable brokerage accounts (accessible anytime)
• Roth IRA contributions (accessible anytime)
• Rental income
• Part-time work
• Pension (if applicable)

Cost coverage for:

• Health insurance (65 and Medicare)
• Living expenses
• Unexpected emergencies
• Potentially decades of retirement

The 4% Rule (Modified)

Traditional guidance suggests withdrawing 4% of your portfolio annually. For early retirees, a more conservative rate (3-3.5%) may be appropriate given the longer time horizon.

Healthcare Gap

The biggest early retirement challenge is healthcare before Medicare at 65:

• ACA marketplace plans ($500-$2,000+/month)
• COBRA (expensive, limited duration)
• Healthcare sharing ministries (not insurance)
• Part-time work with benefits

Deciding When to Retire

Questions to Ask

1. Do I have enough saved? Can my portfolio support my expenses for potentially 30+ years?

2. How will I get health insurance? What's my plan before Medicare at 65?

3. What about Social Security? When should I claim for optimal lifetime benefits?

4. What will I do? Retirement works best with purpose and activities.

5. Have I stress-tested my plan? What happens if markets crash early in retirement?

The Retirement Equation

Common Retirement Age Mistakes

1. Claiming Social Security Too Early

Many people claim at 62 without understanding the permanent reduction. Consider your full picture before deciding.

2. Missing Medicare Enrollment

Late enrollment penalties apply for life. Don't miss your initial enrollment window.

3. Forgetting About Healthcare Costs

Pre-65 healthcare is expensive. Budget for it explicitly.

4. Not Understanding RMDs

Required Minimum Distributions can push you into higher tax brackets. Plan Roth conversions strategically.

5. Assuming You Can Work Forever

Health issues, caregiving, or job market changes may force earlier retirement than planned. Build flexibility into your plan.

Your Retirement Age Action Plan

1. Know your Full Retirement Age: Check the SSA chart for your birth year

2. Estimate your Social Security benefit: Use ssa.gov's calculator

3. Plan for healthcare: Know your options before 65

4. Understand account access ages: 55 (Rule of 55), 59½, 73 (RMDs)

5. Model different scenarios: What if you retire at 55, 60, 65?

6. Consider delaying Social Security: If health and finances allow

7. Enroll in Medicare on time: Don't incur lifetime penalties

8. Plan for RMDs: Consider Roth conversions before 73

There's no single "right" retirement age—only the right age for your circumstances. Understanding the various milestones helps you make informed decisions that maximize your retirement security.

Related Articles

• Social Security Basics: What You Need to Know
• Retirement Planning Basics: Building Your Future
• Roth IRA: The Ultimate Guide to Tax-Free Retirement