How Much Money to Retire at 60? (2026 Calculator & Guide)

Retiring at 60 sounds ideal, but most people have no clue what that actually costs. The short answer? You'll need between $1 million and $2.5 million saved, depending on your lifestyle and where you live.

But that's just the starting point. This guide breaks down the exact numbers you need, the income sources you can tap into, and the realistic budgets that make early retirement possible.

The 4% Rule: Your Retirement Baseline

The most popular retirement planning method is the 4% rule. Here's how it works: Multiply your annual expenses by 25. That's your retirement number.

If you spend $60,000 per year, you need $1.5 million saved ($60,000 × 25 = $1,500,000). Withdraw 4% annually, and your money should last 30+ years.

But the 4% rule has problems:

Breaking Down Real Retirement Costs at Age 60

Let's get specific. Here's what early retirement actually costs:

Essential Monthly Expenses

Total Essential Monthly Cost: $3,600-$6,600 ($43,200-$79,200 annually)

Discretionary Spending

Total with Discretionary: $4,600-$10,000 monthly ($55,200-$120,000 annually)

Three Retirement Budget Scenarios

Scenario 1: Modest Retirement

Scenario 2: Comfortable Retirement

Scenario 3: Affluent Retirement

Income Sources Before Social Security

Retiring at 60 means waiting 2-7 years for Social Security (age 62-67). You need bridge income:

Retirement Account Withdrawals

Other Income Streams

Pro Tip: Don't count on Social Security to save you. If you claim at 62 instead of 67, your benefit drops by 30%. Most early retirees should plan as if Social Security doesn't exist, then treat it as bonus income when it arrives.

The Healthcare Gap: Your Biggest Risk

Healthcare from 60 to 65 is your most expensive unknown. Options to bridge the gap include:

Budget $10,000-$20,000 annually per person for healthcare until Medicare kicks in.

How Location Affects Your Retirement Number

Where you retire changes everything.

Low-Cost Retirement States

High-Cost States to Avoid

Moving from California to Florida could cut your retirement needs by $500,000 or more.

Investment Strategy for Age 60

Your asset allocation matters more at 60 than at any other time. You face "sequence of returns risk"—if the market crashes right when you retire, your portfolio may never recover.

Recommended Allocation:

This "cash bucket" ensures you don't have to sell stocks during a market downturn to pay bills.

The "Rule of 55": A Secret Weapon

If you leave your job in or after the year you turn 55, you can withdraw from your current employer's 401(k) penalty-free.

The Catch:

FAQ Section

Can I retire at 60 with $500k?

It's difficult but possible if you have a paid-off home, very low expenses ($25,000-$30,000/year), and move to a low-cost area. You will likely need part-time work or early Social Security to make it work.

How much does the average person have saved by 60?

The average American in their 60s has about $426,000 saved, but the median is much lower (around $164,000). To retire comfortably at 60, aim for the top 10% of savers.

What is the "multiply by 25" rule?

It's a quick way to calculate your retirement number. Take your annual desired spending and multiply by 25. Example: $80,000 expenses × 25 = $2 million needed. For retiring early at 60, it's safer to multiply by 28 or 30.

How do I calculate my number?

Take your monthly expenses, subtract guaranteed income (pension, rental income), and multiply the remainder by 25.

How much can I withdraw per year without running out of money?

The safe withdrawal rate is 3.5-4% annually. For $1 million saved, that's $35,000-$40,000 per year. Adjust annually for inflation but cut spending if markets crash significantly.

Should I pay off my mortgage before retiring at 60?

Generally yes. Housing costs are your biggest expense. Eliminating a $2,000 mortgage payment reduces your annual needs by $24,000, which means you need $600,000 less saved.

Conclusion

Retiring at 60 requires $1 million to $2.5 million saved, depending on lifestyle. The three critical factors are healthcare coverage until 65, a conservative investment strategy, and realistic expense planning.

Run the numbers honestly. Most people need more than they think. If you're short, working until 63-65 isn't failure—it's smart planning that could save your retirement.