How Much Do I Need to Retire at 60? The Complete Calculation

Published March 18, 2026 · 5 min read · All Articles

Retiring at 60 means your money needs to last 25-30+ years. The standard retirement calculators assume 65 — retiring 5 years early requires more savings and different strategies than most people expect.

The Basic Formula

Annual expenses × 28-30 = your retirement number. Why 28-30 instead of the usual 25? Because retiring at 60 means 5 extra years before Social Security (or reduced benefits if you claim at 62), 5 extra years of healthcare costs before Medicare, and a longer time horizon requiring a more conservative withdrawal rate (3.5% instead of 4%).

Real Numbers

If you spend $60,000/year: you need approximately $1.7 million at 60. At $80,000/year: approximately $2.3 million. At $100,000/year: approximately $2.9 million. These numbers assume Social Security begins at 62, a balanced 60/40 portfolio, and 3% annual inflation.

The Healthcare Bridge (Age 60-65)

This is the most expensive gap in early retirement. Without employer coverage or Medicare, private health insurance for a 60-year-old couple runs $1,200-$2,000/month before ACA subsidies. Budget $60,000-$120,000 specifically for this 5-year healthcare bridge. Consider: COBRA (18 months max), ACA marketplace with income-based subsidies, or health sharing ministries as alternatives.