Can I Retire at 62? A Financial Checklist for 2026

Age 62 is the first moment you can legally claim Social Security — and one of the most emotionally charged decision points in retirement planning. But retirement at 62 comes with a specific set of trade-offs that don't apply at 65 or 67: a permanent Social Security reduction if you claim now, a 3-year gap before Medicare eligibility, and a 30-year withdrawal horizon that makes safe withdrawal rates tighter. This guide works through each decision so you can determine whether retiring at 62 makes financial sense for your situation.

What changes financially at 62

Three things happen simultaneously when you turn 62 that don't occur at any other age:

• Social Security eligibility opens. You can begin claiming benefits — but with a permanent 30% reduction compared to your Full Retirement Age (FRA) benefit, for everyone born in 1960 or later (FRA = 67).¹
• The early withdrawal penalty is firmly behind you. The 10% IRC §72(t) penalty on IRA and 401(k) withdrawals ends at 59½ — so at 62, every retirement account is accessible without penalty. This eliminates the primary mechanical barrier to early retirement for most people.
• Medicare is still 3 years away. Medicare eligibility begins at 65. Retiring at 62 means 3 years of privately funded healthcare — the most important near-term cost variable in your retirement plan.

Each of these creates a decision you don't have at 65. And they interact: your choice about Social Security timing affects your taxable income, which affects your ACA health insurance subsidy eligibility, which affects how much portfolio you need to bridge to Medicare. A clean retire-at-62 plan addresses all three as a system.

The Social Security decision at 62

For anyone born in 1960 or later, FRA is 67. Claiming at 62 locks in a 30% permanent reduction to your benefit — not a temporary reduction that restores at FRA, but a permanent recalculation of every check you receive for the rest of your life (including COLA increases applied to the lower base).¹

Break-even math. Claiming at 62 ($23,520/yr) versus waiting until 70 ($41,664/yr): the break-even point — where total cumulative benefits are equal — is approximately age 80. If you live past 80, delaying to 70 produces more lifetime income. For a healthy 62-year-old, the probability of living past 80 is high: SSA actuarial data shows a 62-year-old man has roughly a 60% chance of reaching 80, and a 62-year-old woman roughly 70%.

The earnings test. If you claim at 62 and continue working, the 2026 earnings test withholds $1 in benefits for every $2 of wages above $24,480.¹ If you earn $60,000 and claim SS at 62, you'd lose approximately $17,760 in SS benefits that year. Withheld benefits are recalculated upward once you reach FRA — but the complexity often isn't worth it. Most people who are still earning meaningfully should delay claiming.

When claiming at 62 makes sense

Despite the reduction, claiming at 62 is sometimes the right financial choice:

• Health concerns — if your life expectancy is below average, earlier claiming wins the break-even math
• Portfolio pressure — if your withdrawal rate without SS is dangerously high (above 5%), SS income reduces portfolio risk immediately
• No spouse — for singles, the survivor benefit coordination argument for delaying doesn't apply
• The money would be invested — if you'd invest the early benefits and earn a real return above ~4%, the math can favor early claiming

For couples, the SS timing decision is more complex. The higher earner's benefit becomes the survivor benefit when one spouse dies — so maximizing the higher earner's benefit by delaying to 70 protects the surviving spouse for potentially decades. See our Social Security Claiming Strategy Guide and SS Break-Even Calculator for full analysis.

The 3-year Medicare gap

Medicare begins at 65. Retiring at 62 creates a 3-year window where you fund healthcare entirely on your own. This is shorter than the 8-year gap for a 57-year-old retiree — but the costs are still substantial, and they interact with your income plan.

ACA marketplace in 2026

The enhanced ACA subsidies that were in place from 2021–2025 expired at end of 2025. In 2026, the original 400% Federal Poverty Level (FPL) subsidy cliff is back: if your MAGI exceeds approximately $62,600 (single) or $84,800 (couple), you lose all ACA subsidies and pay full unsubsidized premiums.²

At age 62, a benchmark Silver plan runs approximately $16,000–$18,000/year unsubsidized. Over 3 years, that's $48,000–$54,000 in healthcare premiums alone — before co-pays, deductibles, and out-of-pocket costs. Staying below the subsidy cliff by managing taxable income is one of the most impactful financial decisions in the first 3 years of retirement at 62.

Portfolio requirements: what "enough" looks like at 62

Retiring at 62 with a plan to live to 92 creates a 30-year withdrawal horizon. The sustainable withdrawal rate for 30 years is approximately 3.7–4.0% at historical success rates above 90%.³ That's meaningfully tighter than the 4% rule commonly cited for a 65-year-old.

The right column illustrates why delaying Social Security matters so much as a portfolio-sizing question. A couple who can bridge to age 70 and then receive $35,000/year in combined SS income needs roughly 40% less portfolio than a couple funding 100% of expenses from savings. This is the single most powerful lever available to a 62-year-old who is on the edge of "can I retire yet?"

Use our Retirement Income Sustainability Calculator or Monte Carlo Simulator to model your specific numbers across return scenarios.

The Roth conversion window: a hidden advantage at 62

Most people focus on what retiring at 62 costs (SS reduction, healthcare gap). Fewer notice the advantage: retiring at 62 opens one of the longest possible Roth conversion windows available to any retiree.

Born in 1964? Your RMD age under SECURE 2.0 is 75.⁴ That means you have 13 years — from retirement at 62 to your first RMD at 75 — during which your traditional IRA produces no forced income. If you delay Social Security until 70, you have 8 years with literally no ordinary income besides what you convert. These are the lowest-rate years of your financial life to move money from taxable IRA to tax-free Roth.

In 2026, the 12% bracket top is $100,800 of taxable income for married filers ($50,400 for singles). After the standard deduction ($32,200 MFJ / $16,100 single), you can convert up to $132,200 (MFJ) or $66,500 (single) of ordinary income before crossing into the 22% bracket — without triggering any IRMAA Medicare surcharges, which start at $109,000 single / $218,000 MFJ MAGI.

A 62-year-old couple delaying SS, filling the 12% bracket with conversions every year from ages 62–70, converts up to $132,200 × 8 = $1,057,600 in 8 years at 12%. This dramatically shrinks the IRA balance before RMDs and SS begin simultaneously at 73–75, when ordinary income will be at its highest. See our Roth Conversion Window Calculator for a full projection.

The retire-at-62 readiness checklist

Before pulling the trigger at 62, work through these five tests:

1. Healthcare is funded for 3 years. You have a plan for health insurance from 62 to 65 — whether ACA marketplace (with income managed below $62,600 to preserve subsidies), COBRA for up to 18 months, or spouse's employer plan. You've budgeted the full cost including deductibles and out-of-pocket maximums.
2. Your portfolio covers the bridge period. If you're delaying SS to 70, your portfolio can fund 8 years of full expenses before SS arrives. A rough test: your portfolio ÷ annual spending should exceed 20 (implying a 5% initial rate) if you're bridging 8 years and expecting Social Security to cover a meaningful share of expenses thereafter. Better to model this in a Monte Carlo tool with your specific SS amount.
3. You've decided on SS timing — and modeled both scenarios. Use the break-even calculator to compare 62 vs 70. If you'd break even around age 80 (typical), and you're in good health, delaying usually wins. If portfolio stress is high or your health picture is uncertain, claiming earlier may be right.
4. Your effective withdrawal rate is sustainable. Before SS begins, your initial withdrawal rate may be higher than after SS starts. Run the math on both phases: Phase 1 (pre-SS) and Phase 2 (post-SS). Phase 1 can tolerate a higher rate if Phase 2 drops to a very low rate once SS arrives.
5. You have a Roth conversion plan. Even a basic plan — "I'll convert $50,000/year to Roth while staying in the 12% bracket" — dramatically reduces your future tax exposure. No plan means leaving the conversion window open and unused until RMDs force income at higher rates.

Worked example: Mark & Lisa, both 62

Mark and Lisa are both 62, born in 1964, both retired in mid-2026. Their numbers:

• $1.3M in Mark's traditional IRA, $180K in Lisa's IRA
• $220K in a taxable brokerage
• $95K in Roth IRA (contributions only, accessible anytime)
• Mark's SS at FRA (67): $3,200/mo ($38,400/yr); at 70: $3,968/mo ($47,616/yr)
• Lisa's SS at FRA: $1,600/mo; at 70: $1,984/mo
• Annual spending: $85,000

Phase 1 — Ages 62–65 (pre-Medicare, pre-SS):
Portfolio draw: $85,000/year. They pull from the taxable brokerage (basis recovery + LTCG at 0% rate on gains, keeping MAGI low). They also convert $60,000/year from Mark's IRA to Roth — $60K is well within the 12% bracket ($100,800 top) and keeps their MAGI at ~$60,000, below the $62,600 ACA subsidy cliff. ACA Silver plan for two 62-year-olds at $60K MAGI runs approximately $600–900/month with subsidies. Healthcare cost: ~$9,000–11,000/year — versus $30,000–36,000 unsubsidized if they'd taken large IRA draws without planning.

Phase 2 — Ages 65–70 (Medicare, pre-SS):
Medicare Part B: $202.90/month each ($4,870/year for both).⁵ Healthcare cost drops substantially. They continue converting $80,000/year to Roth — more headroom now that ACA management is no longer needed. Mark's IRA balance, which would have been ~$1.55M if left untouched, has been reduced to ~$1.1M by age 65 through conversions.

Phase 3 — Age 70+ (SS begins):
Mark claims at 70 ($47,616/yr); Lisa claims at 70 ($23,808/yr). Combined SS: $71,424/yr. Portfolio draw drops from $85K to $13,576/yr — a 1.0% withdrawal rate on a portfolio that, even after 8 years of draws plus continued growth, is approximately $1.4M. The sequence-of-returns risk that defines the first decade of retirement is essentially over. Mark's IRA, now ~$980K after 8 years of conversions and draws, generates a first RMD at 75 of ~$36,400 — manageable, no IRMAA risk, with $111,000/year of QCD capacity to offset further.

What they gave up: 8 years of SS income (~$720K if they'd both claimed at 62). What they gained: $47,616 vs $28,800/yr permanently for Mark (+$18,816/yr for life) and survivor benefit protection. Break-even is approximately age 80. Given their health status, Mark expects to live well past 80. For Lisa, inheriting Mark's $47,616/yr benefit upon his death (vs $28,800 if he'd claimed at 62) is worth an additional ~$18,816/yr for her remaining life.

When to talk to a specialist

The retire-at-62 decision involves four interacting systems — Social Security claiming, healthcare funding, Roth conversion sequencing, and portfolio withdrawal rate — that each have measurable dollar outcomes. Getting one wrong can cost tens of thousands in avoidable taxes, lost subsidies, or reduced lifetime SS income.

A fee-only financial advisor who specializes in retirement income planning (look for RICP, CFP, or CPA-PFS credentials) can model your specific numbers — including healthcare costs, conversion optimization, and phase-by-phase portfolio math — typically for a flat fee of $2,000–$5,000 for a comprehensive retirement income plan. The return on that investment is almost always positive in year one for someone making a $1M+ retirement decision. See our guide on How to Choose a Retirement Income Advisor.

1. SSA.gov — "Effect of Early or Delayed Retirement on Retirement Benefits." For those born 1960 or later, FRA = 67. Claiming at 62: 30% permanent reduction (5/9 of 1% per month for first 36 months = 20%, plus 5/12 of 1% per month for next 24 months = 10%). Claiming at 70: 124% of FRA benefit (8% delayed retirement credit per year, ages 67–70). 2026 earnings test: $24,480 annual exempt amount below FRA.
2. Healthcare.gov — 2026 Federal Poverty Level guidelines. 400% FPL for a single person ≈ $62,600 for 2026; 400% FPL for a 2-person household ≈ $84,800. Enhanced ACA premium tax credits (American Rescue Plan / Inflation Reduction Act) expired December 31, 2025. 2026 ACA marketplace returns to pre-2021 subsidy structure. Roth IRA distributions excluded from MAGI for ACA purposes (IRC §36B).
3. Morningstar — "What's a Safe Retirement Withdrawal Rate for 2026?" 3.9–4.0% safe withdrawal rate for 30-year horizons at 90%+ historical success rates. For 35-year horizons: approximately 3.7%. Wade Pfau and Michael Kitces research cited: historical 30-year success at 4% = ~95% with standard 60/40 portfolio. Monte Carlo modeled rates tend to be slightly lower than historical success rates.
4. IRS — Required Minimum Distributions (RMDs). SECURE 2.0 Act of 2022 (Pub. L. 117-328), § 107: RMD age is 73 for individuals born 1951–1959; RMD age is 75 for individuals born 1960 or later. Those born in 1964 who retire at 62 have a 13-year window before first required distribution at age 75.
5. CMS — 2026 Medicare Parts B Premiums and Deductibles. Standard Medicare Part B premium: $202.90/month per person. IRMAA Tier 1 begins at $109,000 MAGI (single) / $218,000 MAGI (MFJ), adding $74.90/month. Verified 2026 CMS fact sheet. Medicare eligibility begins at age 65 regardless of retirement date.

Tax figures and thresholds verified against 2026 sources as of June 2026.