Can I Retire at 60? What It Takes

Sixty has a nice ring to it. You are close to the finish line, but you are not there yet, and the last stretch has its own rules.

Can You Retire at 60?

Maybe, and for many people the honest answer is yes. It comes down to three things: how much you have saved, how much you spend each year, and which benefits start when. In the United States, Social Security cannot start before 62 and Medicare starts at 65, so retiring at 60 usually means paying your own bills for a few years. In Canada, CPP can start at 60 but Old Age Security waits until 65. If your savings can fill those gaps, 60 can work.

The rest of this post shows what that looks like in plain numbers.

Why 60 Is Trickier Than 65 in the US

Here are the rules that shape a age 60 exit in America:

• Social Security can start as early as 62, but the checks are smaller than if you wait. For anyone born in 1960 or later, the full retirement age is 67.
• Medicare, the federal health program for older adults, starts at 65. Before that, you cover health costs yourself.
• Employer coverage usually ends when your job ends, so you need another plan for those years.

So a US retirement at 60 has two special stretches: the years before Social Security starts, and the years before Medicare starts. We have a whole guide on what happens when you retire before benefits start.

Why 60 Is Simpler in Canada

Canada makes an early exit a little easier:

• CPP, the Canada Pension Plan, can start as early as 60, though the monthly amount is permanently smaller than if you wait.
• OAS, Old Age Security, can start at 65. Deferring it to 70 raises the amount.
• Provincial health coverage continues, so you do not face a big private insurance bill for basic care.

The Canadian question at 60 is mostly whether to take CPP now at a reduced amount or hold off. Our guide on when to take CPP and OAS walks through that choice.

A Worked Example

Let us put round numbers on it. These are made-up numbers to show the math, not predictions.

Suppose you want $52,000 a year to live on. You have a pension of $14,000 a year that starts right away at 60. Social Security would be about $24,000 a year if claimed at 67, or about $18,000 a year if claimed early at 62. Claiming early pays less for life, so think it through. Our guide on when to take Social Security compares the timing choices.

Here is what each year looks like:

Age range	Bills each year	Pension	Social Security	Covered by savings
60 to 61	$52,000	$14,000	$0	$38,000
62 to 66 (claim at 62)	$52,000	$14,000	$18,000	$20,000
67 and later (claimed at 62)	$52,000	$14,000	$18,000	$20,000

To size the savings you need, look at what you will draw year after year, then add the extra strain of the early gap years.

A common way to size this uses something like the 4 percent rule, a rough guide saying you can withdraw about 4 percent of savings each year with reasonable odds the money lasts. Our 4 percent rule guide explains it fully. Using that pace:

• Steady draw at age 62 and later: $20,000 a year needs $20,000 ÷ 0.04 = $500,000 set aside.
• Extra draw in the gap years: ($38,000 − $20,000) × 2 years = $36,000 more.
• Rough total: $500,000 + $36,000 = about $536,000.

What if you wait until 67 to claim instead? The bigger checks shrink the yearly draw:

• Steady draw at 67 and later: $52,000 − $14,000 − $24,000 = $14,000 a year, needing $14,000 ÷ 0.04 = $350,000.
• Extra draw in years 60 to 66: ($38,000 − $14,000) × 7 years = $168,000 more.
• Rough total: $350,000 + $168,000 = about $518,000.

The totals come out similar in this example, but the shape differs. Claiming early leans harder on savings in the short run but keeps the yearly draw higher forever. Waiting strains savings for seven straight years but lowers the permanent draw. Your health, family history, and cash cushion decide which fits. Real portfolios also grow and shrink along the way, and these examples ignore that on purpose, to keep the arithmetic visible.

Do Not Forget Health Coverage

In the US, this is the cost people forget. From 60 to 64, you are on your own for health insurance. Many retirees in this window buy a plan through the public marketplace, and the price depends heavily on your income and your state. Budget a real number for it rather than guessing, because it can rival a car payment. At 65, Medicare takes over.

For planning purposes, some people raise their spending estimate during ages 60 to 64 to absorb this bill, then expect it to ease at 65.

How to Check Your Own Number

You can repeat this example with your own figures in four steps:

1. Estimate yearly spending. A simple start is what you spend now, trimmed or padded for what changes after work stops.
2. Subtract income that starts right away, such as a pension or rental income.
3. Price the gap years. Whatever savings must supply before benefits begin, times however many years that gap lasts.
4. Size the steady draw using a withdrawal pace you are comfortable with.

If adding all this up by hand feels heavy, that is exactly what we built When Can I Retire for. It is a free check that works out the age you can retire and how ready you are today, shows every step of the math, and counts Social Security or CPP and OAS, pensions, taxes, inflation, and the years before benefits start. You can upload a statement or just type the numbers in.

One more thing worth saying plainly: if the numbers come up short today, retiring at 62 or 64 instead of 60 closes the gap fast, since each extra work year means one fewer year to fund and more time for savings to grow. There is no shame in a later date. Many people adjust the target once, breathe easier, and move on.