Should I claim Social Security at 62 or wait until full retirement age?

Claiming at 62 with full retirement age 67 reduces benefits by about 30%. If your portfolio can fund two extra years of full expenses, waiting until 67 adds roughly $750 per month on a $2,500 full benefit — a meaningful increase over a 25-year retirement.

How much do catch-up contributions help in my final decade of work?

An extra $8,000 per year from 50 to 59, invested at 7%, grows to about $118,000 before counting employer match — on top of standard deferrals.

What is the best strategy for bridging the five-year Medicare gap?

Sequence COBRA while it is subsidized relative to alternatives, then shop ACA plans for the remaining years until 65. Include dental and vision separately — Original Medicare does not cover them.

How should I sequence withdrawals between 60 and 73?

Spend taxable brokerage dollars first, then tax-deferred after 59½, and let Roth assets compound longest. Low-income years before RMDs at 73 are prime years for partial Roth conversions.

Retirement scenario

Retire at 60 Calculator — Nest Egg & Catch-Up Savings

Plan retirement at 60 with $70,000 desired income, 7% returns, and 401(k) catch-up limits. Five-year Medicare bridge and Social Security at 62.

Retiring at 60 shortens the pre-Medicare gap to five years and puts early Social Security at 62 within reach — though claiming at 62 permanently reduces benefits versus waiting until 67. With 25 years from age 35 and $50,000 already invested, a $70,000 spending target at 4% ($1,750,000) requires about $1,807 per month at 7% returns in the pre-filled calculator.

Current Age

years

Retirement Age

years

Current Retirement Savings

Monthly Contribution

Expected Annual Return

Desired Annual Income

In today's dollars

You may need to save more to reach your goal.

Projected at Retirement

$286,271

Target Needed

$1,750,000

Sustainable Income

$11,451/yr

Gap: $1,463,729 — To reach your goal, consider increasing your monthly contribution to $1,807/month.

Total You'll Contribute

$50,000

Investment Growth

$236,271

Based on 25 years to retirement and a 4% withdrawal rate (Morningstar's 2026 base case for new retirees is 3.9% over 30 years). Simplified projection — not personalized advice.

Key Considerations

$70,000 per year at 4% equals a $1,750,000 portfolio. The variant defaults show about $1,807 per month of savings from age 35 with $50,000 starting balance and 7% returns.
Claiming Social Security at 62 cuts the monthly check by about 30% versus full retirement age 67 for workers born in 1960 or later — on a $2,500 primary insurance amount, that is roughly $1,750 versus $2,500 per month.
Bridge health coverage: COBRA for up to 18 months, then ACA marketplace plans until Medicare at 65 — build a line item in the budget, not a rough guess.
From age 50, 401(k) catch-up deferrals add $8,000 per year on top of the $24,500 employee limit ($80,000 over 10 years before growth).
Required minimum distributions from traditional accounts begin at age 73 (age 75 for those born in 1960 or later, effective 2033). Draw taxable accounts first in your 50s and 60s when possible.

Quick Numbers

Portfolio needed (4% SWR)	$1,750,000
Monthly savings required	$1,807 at 7% return
Years to retirement	25 years (age 35 to 60)
Years to early Social Security	2 years (age 62)
Medicare gap	5 years (age 60 to 65)
401(k) catch-up (age 50+, 2026)	+$8,000/year

How This Compares

Retiring at 60 leaves a five-year Medicare gap versus ten years at 55 and fifteen at 50, which lowers modeled healthcare spending by a wide margin. On this calculator's defaults, the $70,000 goal from age 35 requires about $1,807 per month — about $309 more than the $60,000-at-55 scenario ($1,498) because of the higher spending target, not because of the later date alone.

Frequently Asked Questions

Should I claim Social Security at 62 or wait until full retirement age?: Claiming at 62 with full retirement age 67 reduces benefits by about 30%. If your portfolio can fund two extra years of full expenses, waiting until 67 adds roughly $750 per month on a $2,500 full benefit — a meaningful increase over a 25-year retirement.
How much do catch-up contributions help in my final decade of work?: An extra $8,000 per year from 50 to 59, invested at 7%, grows to about $118,000 before counting employer match — on top of standard deferrals.
What is the best strategy for bridging the five-year Medicare gap?: Sequence COBRA while it is subsidized relative to alternatives, then shop ACA plans for the remaining years until 65. Include dental and vision separately — Original Medicare does not cover them.
How should I sequence withdrawals between 60 and 73?: Spend taxable brokerage dollars first, then tax-deferred after 59½, and let Roth assets compound longest. Low-income years before RMDs at 73 are prime years for partial Roth conversions.

Sources SSA, 2027 COLA fact sheet (Oct. 2026), IRS IR-2025-111, 2026 retirement plan limits (Nov. 13, 2025). Checked October 2026. Catch-up and deferral limits from IRS 2026 retirement plan limits.