To retire at 60 with $70,000/year in expenses, you need roughly $2.0–$2.8 million using a 2.5–3.5% withdrawal rate for a 35-year retirement. Social Security reduces this requirement once it starts at 62–70. Budget $500–$900/month extra for health insurance until Medicare at 65.
Retiring at 60 is 5 years earlier than the traditional age — but those 5 years matter enormously. Your portfolio needs to last 35 years instead of 30, you face 5 years without Medicare, and if you delay Social Security until 70, your portfolio must fully fund 10 years before benefits kick in.
Retirement Savings Needed at Age 60
- •$50,000/year expenses → $1.43M (3.5%) to $2.0M (2.5%)
- •$70,000/year expenses → $2.0M to $2.8M
- •$90,000/year expenses → $2.57M to $3.6M
- •$110,000/year expenses → $3.14M to $4.4M
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The Social Security Decision at 60
At 60, you cannot yet claim Social Security — the earliest is 62. Claiming at 62 gives you benefits starting 2 years into retirement but permanently reduces them by 25–30% vs. claiming at full retirement age (67). Waiting until 70 maximizes your benefit by 32% above full retirement age but means your portfolio carries you for 10 full years.
Break-even analysis: if your full retirement age benefit is $2,000/month and you claim at 62 ($1,400/month) vs. 70 ($2,640/month), the break-even point is roughly age 80. If you live past 80, waiting wins. If family health history suggests otherwise, claiming earlier may make sense.
The Roth Conversion Window
Ages 60–70 are a golden opportunity for Roth conversions. You are likely in a lower tax bracket than your peak earning years, and converting traditional IRA/401(k) funds to Roth reduces future Required Minimum Distributions (which start at 73). A planned conversion ladder of $30,000–$50,000/year in the 22% bracket can save six figures in lifetime taxes.
If you retire at 60 with $2.5 million in a traditional 401(k), your RMDs starting at 73 could push you into the 32%+ tax bracket. Starting Roth conversions at 60 — before Social Security and RMDs — is one of the highest-leverage tax moves available.