Can I Retire at 60?
Sixty is the sweet spot for early retirement: past the awkward 59½ line so every retirement account is accessible without penalty, but still five years short of Medicare and seven from full retirement age. Plan to 95 and that is a 35-year horizon — which is the number that decides everything else on this page.
What each balance supports to age 95
The middle column is the largest monthly withdrawal that survives 35 years at 5% returns and 2.5% inflation, rising with inflation each year. The right-hand column adds an average Social Security benefit once it starts.
| Balance | Sustainable for 35 years (to 95) | Plus average Social Security from 67 |
|---|---|---|
| $300,000 | $1,062/mo | $3,038/mo |
| $500,000 | $1,770/mo | $3,746/mo |
| $750,000 | $2,656/mo | $4,632/mo |
| $1,000,000 | $3,541/mo | $5,517/mo |
| $1,500,000 | $5,311/mo | $7,287/mo |
| $2,000,000 | $7,081/mo | $9,057/mo |
Getting at your money at 60
You are past 59½, so withdrawals from 401(k)s and IRAs are penalty-free. No rule of 55 gymnastics, no 72(t) schedule — the whole portfolio is available, and the only remaining question is which account to draw from first for tax reasons.
Health insurance
Five years of private cover before Medicare at 65. Budget $1,000–1,500 a month per person unless you qualify for ACA subsidies, and check whether your employer offers retiree medical — it is worth more than most severance packages.
Social Security at 60
Two years until Social Security is even available at 62, and seven until full retirement age. These are ideal years for Roth conversions: no salary, no benefit, and the lowest tax brackets you will ever see again.
The withdrawal rate that fits a 35-year retirement
A 35-year horizon points to a safe withdrawal rate around 3.25–3.5%. The first five years carry the most sequence risk because spending is highest and no guaranteed income has started.
Sequence-of-returns risk is the reason the rate has to come down rather than the arithmetic average of returns. Two retirees with identical average returns end up in very different places depending on whether the bad years land early or late, because early losses are crystallised by the withdrawals taken during them. The standard defences are holding one to two years of spending in cash, trimming discretionary spending roughly 10% after a bad year, and keeping some part-time income available in the first five years.
Frequently asked questions
How much money do I need to retire at 60?
Enough to cover your spending gap for 35 years. At a 3.25% withdrawal rate — appropriate for that horizon — every $100,000 supports about $271 a month. To produce $3,000 a month from savings alone you would need roughly $847,000; add an average Social Security benefit from 67 and the requirement drops sharply.
What is a safe withdrawal rate at 60?
Around 3.25% for a 35-year horizon. The familiar 4% rule was calibrated on 30 years, so a longer retirement needs a lower rate. On $750,000 the calculator puts the sustainable figure at about $2,656 a month.
Can I access my 401(k) at 60?
You are past 59½, so withdrawals from 401(k)s and IRAs are penalty-free. No rule of 55 gymnastics, no 72(t) schedule — the whole portfolio is available, and the only remaining question is which account to draw from first for tax reasons.
What about health insurance at 60?
Five years of private cover before Medicare at 65. Budget $1,000–1,500 a month per person unless you qualify for ACA subsidies, and check whether your employer offers retiree medical — it is worth more than most severance packages.
Other retirement ages
Related
SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.