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Can You Qualify for Early Retirement? Take These Six Tests to Find Out

Preparing to retire at the age of 62, yet unsure about the feasibility? If you resonate with these queries, it seems your retirement could be imminent.

Can You Meet Retirement at 62? Test Yourself with These Six Queries
Can You Meet Retirement at 62? Test Yourself with These Six Queries

Can You Qualify for Early Retirement? Take These Six Tests to Find Out

Retirement is a significant milestone in one's life, and the decision to retire is influenced by a myriad of factors. In the United States, the average age of retirement hovers around 62 years old4, but this figure can differ significantly depending on individual circumstances.

Factors to Consider Before Retiring at 62

When pondering retirement at 62, it's essential to consider several aspects:

  1. Social Security Benefits: Claiming Social Security benefits at 62 may seem appealing, but it results in reduced lifetime benefits compared to waiting until your full retirement age, which is generally 67 for those born in 1960 or later 2.
  2. Financial Preparedness: Ensuring you have sufficient retirement savings is crucial. The median retirement savings for those aged 55-64 is significantly lower than the perceived "magic number" needed for a comfortable retirement 3. In 2025, many believe they need around $1.26 million to retire comfortably 3.
  3. Healthcare Costs: The potential healthcare expenses in retirement should not be overlooked. Longer lifespans and rising healthcare costs can have a substantial impact on retirement planning 4. For instance, a 65-year-old retiring now is expected to spend $165,000 on healthcare in retirement 6.
  4. Lifestyle and Expenses: Evaluating your expected expenses and lifestyle in retirement is vital. Some people may need more or less income depending on their retirement plans 2.
  5. Working Past Retirement: There's a growing trend of working past traditional retirement age for financial, health, or personal fulfillment reasons 4.
  6. It's important to have a clear idea of how much money will be coming in and going out when retired.
  7. If housing costs are a concern, consider retiring in another country, city, or state. Affordable retirement options include Costa Rica, Portugal, and Puerto Rico 7.
  8. Retirement can last more than twenty years, and retiring at 62 means less time to contribute to retirement savings plans and let the balance grow.
  9. Deciding on housing arrangements before retirement is important to factor into the retirement budget. Many retirees plan to age in place, downsize, or move to a cheaper location when they retire 8.

Retiring Early: A Delicate Balance

Retiring early due to health issues means needing health insurance before Medicare kicks in at age 65. Consulting a financial adviser before retirement can help create a plan to help retirement savings generate income in a tax-friendly way 9.

Among retirees who retired early, 31% cited a hardship, 32% were forced out of their jobs, and 39% retired because they could afford to do so 10. The decision to retire early is unique to each individual, and it's essential to consider all factors carefully before making this significant life change.

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