When Can I Retire?

Retirement is one of life’s biggest milestones. For many, it represents the reward after decades of work—a time to enjoy more freedom, pursue passions, and spend time with loved ones. But the question most people ask is: When can I retire? The answer isn’t always straightforward. It depends on financial readiness, health, lifestyle goals, and even psychology.

1. The Financial Piece: Do You Have Enough Saved?

The most common way to define retirement readiness is through money. You’ll need to estimate your expenses in retirement and compare them against your income sources (pensions, Social Security, investments, and savings).

Rule of thumb: Many advisors suggest you’ll need 70–80% of your pre-retirement income each year.
The 4% rule: A popular guideline is that if you can live off 4% of your savings each year, your nest egg could last 30 years.
Debt and obligations: If you still have significant debt, you may want to delay retirement or adjust your budget.

2. The Age Factor

Your retirement age may also be shaped by government programs and workplace benefits.

Social Security (U.S.): You can start as early as 62, but your monthly benefit will be reduced. Waiting until your "full retirement age" (66–67 for most people) or even 70 can increase your benefit.
Pensions: If you’re lucky enough to have one, check the rules. Some pensions have penalties for early withdrawal, while others incentivize later retirement.
Healthcare: Medicare eligibility begins at 65 in the U.S. If you retire earlier, you’ll need to cover health insurance yourself, which can be costly.

3. The Lifestyle Question

Retirement isn’t just about leaving work—it’s about what you’ll do afterward. Ask yourself:

How do I want to spend my time?
Do I plan to travel, relocate, or downsize?
Do I want to work part-time or volunteer?

Your answers will influence both your expenses and your satisfaction in retirement.

4. The Health and Energy Equation

Even if you can afford to retire early, your health may determine whether it’s the right choice. Some people want to retire as soon as possible to enjoy their healthiest years, while others keep working because it gives them purpose and structure.

5. The Psychological Readiness

Many people underestimate how much of their identity and social life revolves around work. Before retiring, it’s important to consider how you’ll stay engaged, challenged, and connected.

So, When Can You Retire?

The right answer is highly personal. Some people retire in their 50s through aggressive saving and careful planning (the FIRE movement—Financial Independence, Retire Early). Others work well into their 70s for fulfillment or financial security.

Ultimately, you’re ready to retire when: