Can You Retire at 62? Key Factors to Consider

Start by comparing your savings, Social Security timing, health insurance options, taxes and lifestyle goals before deciding whether leaving full-time work at 62 fits your household.

Key takeaways

• Retiring at 62 is possible for some people, but it still requires a bridge plan before Medicare eligibility begins.

• At 62, you can generally claim Social Security retirement benefits, but claiming before full retirement age results in a reduced monthly benefit.³

• You are generally 3 years away from Medicare eligibility, which makes health insurance a major planning question.⁴

• Because age 62 is past 59½, many retirement account withdrawals can avoid the additional 10% tax, depending on account type and rules.¹

• Retiring at 62 depends on more than your total net worth. Health insurance, taxes, Social Security timing, debt and family responsibilities all affect whether the plan will work for you day to day.

• Financial and tax professionals can help you compare claiming age, withdrawal timing and tax considerations.

How to plan for retirement at 62

At 62, retirement planning often shifts from whether Social Security is available to whether claiming now fits your broader income plan. You are past age 59½, when you can withdraw from some retirement accounts without the 10% penalty, and can generally claim Social Security retirement benefits, but Medicare eligibility is still several years away.

That makes it important to decide whether you would claim Social Security at 62, use savings or part-time income first, or wait for a later claiming age. Each path can affect monthly income, taxable income and how much you need from savings before Medicare begins.

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 62 different from other retirement ages

Age 62 is a major retirement milestone because it is generally the earliest age to claim Social Security retirement benefits. It is also still before Medicare and full retirement age, so the timing decision deserves 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 62?

There is no single savings number for retiring at 62. The right number depends on your annual spending, health insurance costs, Social Security timing, 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 62: 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.

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

How the 62-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 Medicare or full retirement age, become available. At 62, Social Security may be available, but the bridge to Medicare still requires planning.

For 68% of near-retired consumers, retirement is expected to include three or more income sources.* For someone retiring at 62, planning those income sources before Medicare can be especially important.

Can you access retirement accounts if you retire at 62?

You may be able to access some retirement money at 62, but account type, taxes and plan rules still matter. Because age 62 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 penalty-free withdrawals from certain workplace retirement accounts if you leave your employer at age 55 or later, is generally less relevant by age 62. Employer plan rules can still affect when and how distributions are available, and IRAs have their own rules.²

Before using 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 62?

If you retire at 62, you can generally claim Social Security retirement benefits, but claiming before full retirement age results in a reduced monthly benefit.³ For people born in 1960 or later, full retirement age is 67.³

That makes age 62 a decision point, not just an eligibility milestone. Claiming now can provide income sooner, while waiting can change your monthly benefit amount and affect how much you need from savings in the meantime.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 62

Health insurance is a major planning question if you retire at 62. Medicare generally begins at age 65 for most people, which creates a 3-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 62?

Retiring at 62 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% say 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 62.

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 62 makes sense

Retiring at 62 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 62 can be more challenging

Retiring at 62 can be more challenging if:

• You have not compared Social Security claiming options

• 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

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 62 fits your goals, timeline and comfort with risk.

Questions to ask before retiring at 62

• 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?

• Would I claim Social Security at 62 or use other income first?

• How would claiming now affect my monthly benefit?

• Which accounts would I use before Medicare begins?

• 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 should I review with a tax professional?

• What should I review with a financial professional?

Frequently asked questions (FAQs) about retiring at 62

Can you retire at 62?

Yes, for some people. Retiring at 62 can be possible if you have enough accessible savings, income sources and health insurance options to support the years before Medicare and full retirement age.

How much money do you need to retire at 62?

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.

Can I retire at 62 and collect Social Security?

Yes. Age 62 is generally the earliest age to claim Social Security retirement benefits, but claiming before full retirement age results in a reduced monthly benefit.³

Can I get Medicare if I retire at 62?

Most people are first eligible for Medicare at 65.⁴ If you retire at 62, you will need to plan for another health insurance option until Medicare begins.

Can I access my 401(k) if I retire at 62?

You may be able to access funds, depending on your plan rules. Because age 62 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 62?

Retiring at 62 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 at 62?

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

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.

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