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« Comments: Exercising Your Most Important Assets | Main | Three Ways to Make Sure Your Retirement Savings Outlasts You »

March 31, 2006


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While having a retirement nest-egg seems like a nearly impossible task these days, I would call retiring at 60 "early." Sure, they haven't reach the point where they can pull Social Security, but they could be pulling IRA funds. When I think if "early," I am thinking 50 or sooner. I think that anyone who is competent enough to have enough funds to retire at 60 and have a decent nest-egg could pull it off at 55. It doesn't seem like all that big of a deal.

However, I do not want to rain on their parade. Having a nest-egg, in the first place, is a reason to celebrate.

One thing I'd add is that I plan to retire at 62 as I intend to use my early social security payments to cover the cost of health insurance. 60 sounds good, but health insurance costs are just too big a drain on the retirement pot.

I figure 62 is a reasonable compromise for a good reason. At 60, I should have nearly 14 times my annual salary in my retirement account which would produce an income of about 75% of my salary. That would be enough to live on, but not after paying for health insurance.

At 62, I should be over 15 times my annual income in my retirement account which will give a higher annual draw (while leaving room for my annual draw to grow at a 3% annual rate for life). Then, with health insurance covered by social security payments, the rest will be adequate to live on.

What do others think?

I agree with Dus10...retiring at age 60 is not really "early" in my book. But then, when you look at America, most people still don't have decent nest eggs even by age 65, so I guess 60 is "early" by that low standard.

In today's world, I think most people need to be prepared to be at least semi-independent by age 50, as a lot of companies are dumping people out around that age and a lot of people in their 50s end up making a lot less in their new jobs than they did in their old ones.

Gary Wallin: You're doing a lot better than most people, and using your SS check to pay for health care sounds about right. Having 15x your salary should be ok, but sounds a little tight to me....but if your house and other debts are paid off and you have reasonable living expenses, you should be fine.

I would consider by 60 early, but if you've prepared yourself financially I believe it's a realistic goal. I've personally retired at 60 and am currently using internet based business opportunities to augment my investments.


I'm 51, our house will be paid off in a couple months, and we have about $1.3M saved, a combination of regular and retirement funds. I'm ready to retire now, but wife says no, we have 3 kids to send to college, keep working until at least 55. She's probably right, but after almost 30 years of engineering in aerospace, I could use a change to something less demanding. Since we live on way less than I make, my calculations show that we have plenty, as we are frugal and simple. I think she just doesn't want me around the house, and she says I won't have anything to keep me busy. Me, I'd like the chance to try it while I'm still healthy.

Mike -- congratulations! Maybe you and your wife can come to a compromise on on this -- if you work for one or two more years, you can still enjoy a few extra years of retirement and maybe your wife will feel more financially secure as the numbers get even bigger.

Personally, I am in my 20s and if I can continue saving the same $$/year that I have been so far, returning 8% a year, I'll be in a similar financial situation to you when I'm around my 50th b'day -- adjusted for inflation. I would love to retire that early, but without knowing how many kids I'll have, how the rest of my career and my wife's career will go, and any number of other things it's hard for me to make good projections!

Well Fuck That.

If a person desires to retire early then he must invest in peerless investments. Investing in real estate IRA will help the investor a lot In the future.

The working class people work very hard and now they desire to retire early from their jobs. Investing in supreme investment will help the investor to retire early.

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