Is it foolish to retire at 62?

No, retiring at 62 isn't inherently foolish; it's a personal decision based on your finances, health, and lifestyle goals, but it requires careful planning because Social Security benefits are reduced, Medicare isn't available until 65, and you'll need sufficient savings to cover potentially 20+ years of retirement. Working longer offers a more financially secure retirement with higher benefits, while retiring at 62 allows you to enjoy active years sooner, especially if you have health concerns or debt-free finances.

Is retiring at 62 a good idea?

Retiring at 62 can be a great idea if you're financially prepared (debt-free, sufficient savings, healthcare planned) and prioritize more free time or health, but it means significantly reduced Social Security benefits (up to 30% less) and fewer years to build savings, so it's a personal choice balancing reduced lifetime income with immediate lifestyle freedom, requiring careful planning for expenses like healthcare until Medicare at 65. 

What is the smartest age to retire?

There's no single "smartest" age, but 65-67 is a common sweet spot for maximizing benefits (full Social Security, Medicare eligibility), while many Americans think 63 is ideal but often retire around 62-64 due to health or finances. The truly best age depends on your financial security, health, lifestyle goals, and desire to work, with some experts suggesting delaying Social Security to 70 for maximum payout, making late 60s a financially optimal time to retire, even if you start earlier. 

How much money will I lose if I retire at 62 instead of 65?

If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent.

How much money should I have when I retire at 62?

To retire comfortably at 62, you ideally need 8 to 10 times your final salary saved, aiming for around $1 million to $1.6 million if earning $100k+, but the exact amount depends on your desired lifestyle, expenses (housing, healthcare), and other income like Social Security, with guidelines suggesting 14x salary by 62 for early retirement or using the 4% rule to determine needed nest egg size. 

Once They Understand This, ALL Retirees Claim At 62

What are the biggest retirement mistakes?

The biggest retirement mistakes involve poor planning (starting late, underestimating costs like healthcare/inflation, not having a budget) and bad financial decisions (claiming Social Security too early, taking big investment risks or being too conservative, cashing out accounts, having too much debt). Many also neglect the non-financial aspects, like adjusting lifestyle or planning for longevity, leading to running out of money or feeling unfulfilled. 

What does Suze Orman say about taking Social Security at 62?

Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."

What is an average Social Security check at age 62?

The average Social Security check for someone retiring at age 62 is around $1,300 - $1,340 per month, but this is significantly reduced from your full retirement age (FRA) benefit, which can be up to 30% less. For example, data from late 2024 showed averages around $1,342, while some 2025 estimates put it near $1,298-$1,300, but this varies based on individual earnings and when you claim, as delaying until FRA (around 67) or age 70 yields much higher payments. 

How many hours am I allowed to work if I retire at 62?

You can work as many hours as you want at age 62, but your Social Security benefits might be reduced until you reach your Full Retirement Age (FRA), typically 67; after FRA, there are no earnings limits, and you can work full-time without affecting benefits, though high earnings can make benefits taxable. The key factor is your income relative to the annual limit (e.g., ~$23,400 in 2025), not hours, as earnings over the limit reduce benefits dollar-for-dollar before FRA, but this is temporary and recalculated later. 

Can I live off $5000 a month in retirement?

To retire comfortably, many retirees need between $60,000 and $100,000 annually, or $5,000 to $8,300 per month. This varies based on personal financial needs and expenses.

How many Americans have $500,000 in retirement savings?

Only a small percentage of Americans have $500,000 or more in retirement savings, with recent data (late 2025/early 2026) suggesting around 7% to 9% of households have reached this milestone, though this varies by source and can be skewed by high-income earners or home equity. For instance, one study showed only 4% of all households had $500k-$999k, and 3.1% had $1M+. 

How do you know it's time to retire?

It's time to retire when financial readiness meets emotional readiness, marked by feeling burnt out or unfulfilled at work, dreading Mondays, daydreaming about freedom, having sufficient savings/pension/Social Security to cover costs (especially healthcare), and a clear vision for a fulfilling post-work life with hobbies or family, though some may transition gradually with part-time work. 

What is the downside to taking Social Security at 62?

The primary disadvantage of claiming Social Security at age 62 is a permanently reduced monthly benefit, potentially by up to 30%, because you're taking it at the earliest possible time, not your Full Retirement Age (FRA), which is usually 67 for those born after 1960. This smaller base amount also leads to smaller future Cost-of-Living Adjustments (COLAs), meaning your benefit grows less over time, and it can impact spousal/survivor benefits, limiting your lifetime income potential significantly. 

What percentage of people retire at 62?

However, between 2016-2022, 32% of U.S. adults 60-64 and 70% of U.S. adults 65-69 were retired, according to a 2022 Gallup survey. Pew Research Center. A Year Into the Pandemic, Long-Term Financial Impact Weighs Heavily on Many Americans.

What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate ($240k x 0.05 / 12 = $1k/month). It's a motivational tool to estimate savings goals (e.g., $3,000/month needs $720k), but it's one-dimensional, doesn't account for inflation, taxes, or other income like Social Security, and assumes steady 5% returns, making a personalized plan essential. 

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 

Should I pay off my mortgage before I retire?

“If your mortgage rate is around 3 percent, it might not make sense to pay it off early.” But, he adds, “if you have a newer mortgage with a rate closer to 6 or 7 percent, putting extra money toward your mortgage can be a smart move, since it's harder to find low-risk investments that pay that much.”

What does Dave Ramsey say about Social Security at 62?

Claiming Social Security at 62 can be risky, because if you don't have a lot of savings to supplement your benefits, you could end up short on income.

What is the smartest age to collect Social Security?

The "smartest" age to collect Social Security varies, but age 70 is often statistically best for maximizing lifetime benefits, as monthly checks grow significantly until then, especially for higher earners and those expecting long lives; however, claiming at Full Retirement Age (FRA) (67 for most) secures 100% of benefits, while taking it as early as 62 provides income sooner but permanently reduces payments, making it ideal for those with immediate financial needs or shorter life expectancies. 

What does Warren Buffett say about Social Security?

Warren Buffett's core message on Social Security is that cutting benefits is a major mistake, as a rich country must care for its elderly, but he acknowledges the system's financial challenges and suggests solutions like raising the taxable income cap for Social Security taxes, slightly increasing the payroll tax, and gradually raising the retirement age, urging Congress to act before trust fund insolvency forces drastic cuts. He sees Social Security as a vital, successful government program that needs responsible adjustments, not benefit reductions. 

What is the number one regret of retirees?

Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement. Those who have worked for many years need to realize that dining out, clothing and entertainment expenses should be reduced because they are no longer earning the same amount of money as they were while working.

What not to do when you retire?

In retirement, avoid overspending, claiming Social Security too early, getting too conservative with investments, isolating yourself socially, neglecting your health, and failing to plan for inflation or medical costs. Also, don't assume work friendships will last, make big financial moves without discussing them with your spouse, or rely on "common knowledge" for financial decisions. 

What are the 3 R's of retirement?

The Three R's of Retirement: Resiliency, Resourcefulness & the Renaissance Spirit.