Can You Retire at 60? Key Factors to Consider

Start by comparing your savings, income sources, health insurance options, taxes and lifestyle goals before deciding whether leaving full-time work at 60 fits your household.

Key takeaways

• Retiring at 60 is possible for some people, but it often requires a clear plan before Social Security and Medicare begin.

• At 60, you are generally 2 years away from the earliest age to claim Social Security retirement benefits and 5 years away from Medicare eligibility.³,⁴

• Because age 60 is past 59½, many retirement account withdrawals can avoid the additional 10% tax, depending on account type and rules.¹

• Ordinary income taxes can still apply to pretax withdrawals, and employer plan rules can affect distribution options.

• Retiring at 60 depends on more than your total net worth. Health insurance, taxes, accessible savings, debt and family responsibilities all affect whether the plan works day to day.

• Financial and tax professionals can help you compare retirement timing, withdrawal strategies and tax considerations.

How to plan for retirement at 60

At 60, retirement planning often shifts from early-retirement access questions to near-retirement timing decisions. You are past age 59½, but still before Social Security and Medicare. That makes it important to understand which income sources you can use now, which benefits come later and how long your health insurance bridge needs to last.

You will also want to think through whether to claim Social Security at 62, wait until full retirement age or use other income sources first. Each path can affect monthly income, taxable income and how much you need from savings during the two years in between.

Personal responsibilities can also shape the decision. Debt, adult children, aging parents, household expenses, career changes and part-time work can all affect whether leaving full-time work feels manageable.

What makes age 60 different from other retirement ages

Age 60 is close enough to Social Security and Medicare that planning can feel more concrete, but early enough that health insurance and income timing still need careful consideration.

If you are comparing retirement dates, a retirement age calculator can help you see how retiring at different times can affect the number of years you need to bridge before key retirement milestones.

How much money do you need to retire at 60?

There is no single savings number for retiring at 60. The right number depends on your annual spending, health insurance costs, taxes, debt, income sources and how much flexibility you want.

Mutual of Omaha’s 2025 Decumulation Study found that 65% of retired consumers and 68% of near-retired consumers expect to have three or more income sources during retirement.* That can be a useful planning concept at 60: retirement planning can benefit from more than one income source.

When estimating how much you need for retirement, avoid relying only on broad benchmarks, such as saving a certain multiple of your annual income. Those guidelines can be a starting point, but they do not account for your full picture, including annual spending, cash flow, health insurance, taxes, family responsibilities or different income and withdrawal scenarios. A household with low debt, accessible savings and a spouse’s health insurance might have a different path than a household with high housing costs and several dependents.

From there, build scenarios around different Social Security, health insurance and withdrawal timelines.

How the 60-to-65 bridge can work

A retirement bridge is the income, savings and benefits plan that supports you between the day you stop full-time work and the day later retirement milestones, like Social Security or Medicare, become available. At 60, that bridge is shorter than it would be in your 40s or 50s, but it can still require several years of planning before Social Security and Medicare begin.

For 68% of near-retired consumers, retirement is expected to include three or more income sources.* For someone retiring at 60, planning those income sources before Social Security and Medicare can be especially important.

Can you access retirement accounts if you retire at 60?

You may be able to access some retirement money at 60, but account type, taxes and plan rules still matter. Because age 60 is past 59½, many retirement account withdrawals can avoid the additional 10% tax, depending on account type and rules.¹ Pretax withdrawals can also be taxed as ordinary income.

The Rule of 55, which allows you to withdraw from some workplace retirement plan after you turn 55, can still matter for some qualified workplace plans, but age 59½ often becomes the broader retirement account milestone^.2 Employer plan rules can affect when and how distributions are available, and IRAs have their own rules.

Before withdrawing from retirement accounts, review:

• Which accounts are taxable, tax-deferred or tax-free

• Whether the money is in a workplace plan, IRA, Roth IRA or taxable account

• Whether ordinary income taxes could apply

• Whether your plan allows the type of distribution you want

• How withdrawals could affect your long-term income plan

• Whether a tax professional should review the strategy first

Knowing the difference between an IRA and a 401(k) can help you ask the right questions before making a withdrawal decision.

What happens to Social Security if you retire at 60?

If you retire at 60, you generally cannot start Social Security retirement benefits yet. The earliest age to claim Social Security retirement benefits is 62, and claiming before full retirement age results in a reduced monthly benefit.³

Retiring at 60 can also affect your future benefit if it reduces the number of higher-earning years in your record. Social Security benefits are based on your earnings history, so working fewer years can affect the calculation for some people.³

Because Social Security is close but not immediate, the years between 60 and 62 can affect how much you need from savings, whether part-time income continues and how you think about claiming early versus waiting. Claiming at 62 can provide income sooner, but waiting until full retirement age of 67 or later can change your monthly benefit amount.³

Mark Zagurski, director of strategy and communications at Mutual of Omaha Advisors, explains why claiming age is a personal decision: “Taking benefits at age 62, at full retirement age or FRA, which is typically around 66 to 67, or waiting until age 70, carries unique risks and rewards.”

As you compare timelines, learn more about when to apply for Social Security and what Social Security full retirement age means for your birth year.

How health insurance affects retiring at 60

Health insurance is a major planning question if you retire at 60. Medicare generally begins at age 65 for most people, which creates a 5-year health insurance bridge.⁴

Your options will depend on your household, employment situation and eligibility. Before making a decision, compare the total cost of each option, including premiums, deductibles, provider networks, prescriptions and how long the coverage lasts.

Before you retire, compare total health care costs, not just premiums. Deductibles, copays, coinsurance, prescription drugs, dental care and vision care can all affect your budget.

What expenses should you plan for if you retire at 60?

Retiring at 60 can shift your expenses, but it might not reduce them as much as expected. A simple budget can help you see which costs stay the same, change or end.

Among near-retired consumers, 56% said inflation or increased costs of goods were among their top financial worries, and 59% named health care costs.* These are important pressure tests for anyone considering retirement at 60.

If debt is part of your budget, it can help to weigh the benefits of paying it down against the flexibility of keeping cash accessible. For some households, the choice is not simply paying off debt or saving more. The decision often comes down to balancing monthly cash flow with keeping emergency savings within reach.

When retiring at 60 makes sense

Retiring at 60 can make sense for some people who have:

• A clear retirement budget

• Health insurance planned before Medicare

• Accessible savings and retirement accounts

• Manageable debt

• Several potential income sources

• A Social Security timing strategy

• A tax-aware withdrawal plan

• Flexibility to adjust spending

• A clear plan for time, purpose and routine

It can also make sense for someone shifting from full-time work into consulting, self-employment, part-time work or caregiving. If you are considering a nontraditional path, it can help to understand how to retire early while still planning for income, health insurance and long-term flexibility.

When retiring at 60 can be more challenging

• Retiring at 60 can be more challenging if:

• You do not have a health insurance bridge to Medicare

• You still have high-interest debt

• You are supporting children, parents or other family members

• You are relying on one income source

• Your plan assumes consistent market growth

• You have not planned for unexpected expenses

• You have not compared Social Security claiming options

Only 53% of near-retired consumers feel very or extremely confident that their planned retirement income would support their spending throughout retirement.* A clear plan can help you see whether retiring at 60 fits your goals, timeline and comfort with risk.

Questions to ask before retiring at 60

• How much do I spend each year now?

• What expenses would change if I stopped working?

• How would I pay for health insurance until Medicare eligibility?

• Which accounts would I use before Social Security begins?

• How would retiring now affect my Social Security benefit?

• Would working a few more years improve my flexibility?

• How much debt would I carry into retirement?

• How would this affect my spouse, partner, children or parents?

• What happens if health care costs rise?

• What should I review with a tax professional?

• What should I review with a financial professional?

Frequently asked questions about retiring at 60

Can you retire at 60?

Yes, for some people. Retiring at 60 can be possible if you have enough accessible savings, income sources and health insurance options to support the years before Social Security and Medicare.

How much money do you need to retire at 60?

There is no single amount. Start by estimating annual expenses, subtracting reliable income sources and calculating how much you need from savings each year. Then factor in health insurance, taxes, debt, inflation and how long retirement lasts. Working with a financial professional can help you visualize the full picture.

Can I retire at 60 and collect Social Security?

No, not standard Social Security retirement benefits. The earliest age to claim Social Security retirement benefits is generally 62.³ If you retire at 60, you will need another income strategy for at least 2 years.

Can I get Medicare if I retire at 60?

Most people are first eligible for Medicare at 65.⁴ If you retire at 60, you will need to plan for another health insurance option until Medicare begins.

Can I access my 401(k) if I retire at 60?

You may be able to access funds, depending on your plan rules. Because age 60 is past 59½, many retirement account withdrawals can avoid the additional 10% tax, depending on account type and rules.¹ Ordinary income taxes can still apply to pretax withdrawals.

Is it a mistake to retire at 60?

Retiring at 60 is not automatically a mistake. It can work for some people with accessible savings, health insurance options, manageable debt and flexible income sources. It can be more challenging if the plan depends on early Social Security claiming, consistent market growth or limited cash reserves.

What are the biggest mistakes people make when retiring early?

Common mistakes include underestimating health insurance costs, relying on one savings number, overlooking taxes, claiming Social Security without comparing options, carrying high-interest debt and failing to plan for family responsibilities or finding renewed purpose after leaving work.

Sources:

*Mutual of Omaha worked with research vendor, quantilope, to conduct research related to Decumulation – the strategic drawdown of assets during retirement years. This research had a sample size of 496 respondents aged 50+ who were already retired (n=327) or nearing retirement (n=169) within the next 10 years. Respondents who stated they did not have at least some assets to draw down during retirement were excluded from the survey. The research was conducted in a 10-minute online survey from October 6-15, 2025. All data included in this report are based on Mutual of Omaha proprietary research unless otherwise noted.

1. Internal Revenue Service. (2026, January 22). Topic no. 558: Additional tax on early distributions from retirement plans other than IRAs. https://www.irs.gov/taxtopics/tc558

2. Internal Revenue Service. (2025, December 11). Retirement topics — Exceptions to tax on early distributions. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions

3. Social Security Administration. (2026, January). Retirement benefits. https://www.ssa.gov/pubs/EN-05-10035.pdf

4. Centers for Medicare & Medicaid Services. (2026). Medicare & You 2026. https://www.medicare.gov/publications/10050-medicare-and-you.pdf

5. HealthCare.gov. (n.d.). Health care coverage for retirees. Retrieved May 2026, from https://www.healthcare.gov/retirees

Disclosures:

Registered Representatives offer securities through Mutual of Omaha Investor Services, Inc., Member FINRA/SIPC. Investment Advisor Representatives offer advisory services through Mutual of Omaha Investor Services, Inc.  Mutual of Omaha Advisors is a division of Mutual of Omaha Insurance Company, a stock insurer*.

All investing involves risk, including the possible loss of principal, and there can be no assurance that any investment strategy will be successful.

Mutual of Omaha and its representatives do not provide tax and/or legal advice, and the information provided herein is general in nature and should not be considered tax and/or legal advice.

Not all Mutual of Omaha agents are registered representatives or financial advisors.

*Mutual of Omaha Insurance Company (the Company) is a stock insurer. Policyholders of the Company are members of Mutual of Omaha Holding Company (MOHC) of Omaha, Nebraska. The Company is an indirect, wholly‑owned subsidiary of MOHC.​