Can You Retire at 67? Key Factors to Consider

Start by comparing your savings, Social Security timing, Medicare choices, retirement account withdrawals, taxes and lifestyle goals before deciding whether leaving full-time work at 67 fits your household.

Key takeaways

• Retiring at 67 is possible for some people, but it still requires a clear plan for income, taxes, health care costs and long-term spending.

• For people born in 1960 or later, 67 is full retirement age for Social Security. Medicare eligibility generally begins earlier at age 65.³,⁴

• Because age 67 is past 59½, many retirement account withdrawals can avoid the additional 10% tax, depending on account type and rules.¹

• Required minimum distributions generally begin at age 73, so withdrawal timing before then can be part of tax planning.⁵

• Retiring at 67 depends on more than your total net worth. Social Security timing, Medicare costs, taxes, accessible savings, debt and family responsibilities all affect whether the plan works day to day.

• Financial and tax professionals can help you compare income sources, withdrawal strategies, Social Security timing and tax considerations.

How to plan for retirement at 67

At 67, retirement planning often shifts from eligibility questions to coordination. You may be at full retirement age for Social Security, Medicare eligibility has generally already begun and many retirement account withdrawals are more flexible after age 59½. The question becomes how those pieces work together.

You will want to decide whether to claim Social Security, delay benefits, use retirement account withdrawals, continue part-time work or combine several income sources. Each choice can affect monthly income, taxable income and how much you need from savings.

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

What makes age 67 different from other retirement ages

Age 67 can feel like a natural retirement checkpoint because it is full retirement age for many workers, but it is still not a one-size-fits-all finish line.

If you are comparing retirement dates, a retirement age calculator can help you see how retiring at different times can affect key income and benefit milestones.

How much money do you need to retire at 67?

There is no single savings number for retiring at 67. The right number depends on your annual spending, Social Security timing, Medicare 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 67: retirement 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 care costs, taxes, family responsibilities or different income and withdrawal scenarios. A household with low debt, multiple income sources and manageable health care costs might have a different path than a household with high housing costs and several dependents.

From there, build scenarios around different Social Security, Medicare, withdrawal and tax timelines.

How the 67-to-73 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 later retirement milestones. At 67, the bridge often shifts from Medicare eligibility to Social Security timing, tax planning and required minimum distributions later on.

A clear plan can also shape confidence around retirement spending: 78% of near-retired consumers say having a clear plan makes them feel comfortable spending in retirement.* That kind of clarity can matter as you coordinate income sources at 67.

Can you access retirement accounts if you retire at 67?

You may be able to access some retirement money at 67, but account type, taxes and plan rules still matter. Because age 67 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.

Earlier exceptions, such as the Rule of 55, are generally less central at 67 because that age is already behind you, but plan rules still matter.² Required minimum distributions also generally begin later at age 73, which makes withdrawal timing before then worth reviewing.⁵ Ask yourself these questions:

• 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

• How future required minimum distributions could affect your tax picture

• 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 67?

For people born in 1960 or later, 67 is full retirement age for Social Security. That means claiming at 67 can generally provide your full calculated retirement benefit, while claiming earlier results in a reduced monthly benefit.³

Retiring at 67 can also affect your future benefit if additional work would have replaced lower-earning years in your record. Social Security benefits are based on your earnings history, so work decisions can still affect the calculation for some people.³

Full retirement age is not a deadline to claim. Delaying after full retirement age can change your monthly benefit amount, but it also means relying on other income sources longer.³

Mark Zagurski, director of strategy and communications at Mutual of Omaha Advisors, explains why the decision should still be personal: “There is no best age for everyone.”

For someone retiring at 67, that means Social Security timing should be reviewed alongside savings, taxes, Medicare costs and household needs. Learn more about Social Security full retirement age and when to apply for Social Security before choosing a claiming date.

How Medicare and health care affect retiring at 67

Health care planning at 67 is different from retiring before Medicare eligibility. Most people are first eligible for Medicare at 65, so someone retiring at 67 should review current enrollment status, employer or retiree coverage, premiums, prescriptions and out-of-pocket costs.⁴

Your options will depend on your household, employment situation and coverage history. Before making a decision, compare total health care costs, provider access, prescriptions and how coverage changes once full-time work ends.

Before you retire, compare total health care costs, not just premiums. Health care expenses can affect how much you need from Social Security, savings and other income sources.

What expenses should you plan for if you retire at 67?

Retiring at 67 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 67.

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.

Why required minimum distributions matter later

At 67, required minimum distributions are still several years away, but they can affect how you think about withdrawals before age 73. RMDs generally begin at age 73 for many tax-deferred retirement accounts, but timing can depend on account type, birth year and current IRS rules.⁵

That makes the years after 67 a useful time to review taxable income, withdrawal timing and future cash flow. This does not mean you need to take more withdrawals than your plan calls for. It means RMD timing should be part of the broader discussion about Social Security, Medicare costs, taxes and long-term income needs.

When retiring at 67 makes sense

Retiring at 67 can make sense for some people who have:

• A clear retirement budget

• Medicare and health care costs planned

• Accessible savings and retirement accounts

• Manageable debt

• Several potential income sources

• A Social Security timing strategy

• A tax-aware withdrawal plan

• A plan for future required minimum distributions

• Flexibility to adjust spending

• A clear plan for your extra time, including finding a new purpose and routine

It can also make sense for someone shifting into consulting, self-employment, part-time work, caregiving or a phased retirement. The key is to understand how continued income, Social Security, health care and taxes work together.

When retiring at 67 can be more challenging

Retiring at 67 can be more challenging if:

• You have not compared Social Security claiming options

• You have not reviewed Medicare and health care costs

• 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 considered future required minimum distributions

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 67 fits your goals, timeline and comfort with risk.

Questions to ask before retiring at 67

• How much do I spend each year now?

• What expenses would change if I stopped working?

• Have I reviewed Medicare enrollment, premiums and out-of-pocket costs?

• Would I claim Social Security now or delay toward age 70?

• Which accounts would I use first?

• How would retiring now affect my Social Security benefit?

• Would working another year 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 67

Can you retire at 67?

Yes, for some people. Retiring at 67 can be possible if you have enough income sources, health care planning and savings to support your spending throughout retirement.

Is 67 full retirement age for Social Security?

For people born in 1960 or later, full retirement age for Social Security is 67.³ People born earlier may have a different full retirement age, so review the rules for your birth year.

How much money do you need to retire at 67?

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 care costs, taxes, debt, inflation and how long retirement lasts.

Can I get Medicare if I retire at 67?

Most people are first eligible for Medicare at 65.⁴ If you retire at 67, review whether you are already enrolled and how Medicare, employer coverage or retiree coverage may work after you leave full-time work.

Can I access my 401(k) if I retire at 67?

You may be able to access funds, depending on your plan rules. Because age 67 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.

Do required minimum distributions start at 67?

Generally, no. Required minimum distributions generally begin at age 73 for many tax-deferred retirement accounts.⁵ That gives someone retiring at 67 several years to review withdrawal timing and tax planning before RMDs begin.

Is it a mistake to retire at 67?

Retiring at 67 is not automatically a mistake. It can work for some people with income sources, health care planning, manageable debt and flexible savings. It can be more challenging if the plan depends on one income source, consistent market growth or limited cash reserves.

What are the biggest mistakes people make when retiring at 67?

Common mistakes include overlooking health care costs, relying on one savings number, overlooking taxes, claiming Social Security without comparing options, carrying high-interest debt and failing to plan for future required minimum distributions.

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. Internal Revenue Service. (n.d.). Retirement topics — Required minimum distributions (RMDs). Retrieved May 2026, from https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds

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.

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