Recently been thinking about what it actually takes to retire at 62, and honestly it's more nuanced than just having a number in the bank. A lot of people see 62 as the magic age to finally leave work, especially since Social Security kicks in then. But here's the thing – retiring that early means you're potentially looking at 25 to 30 years of expenses to cover. That's a long runway.

Let me break down the math that most people use. Fidelity has this 10x rule where you should have 10 times your annual salary saved by 67. But if you want to retire at 62 instead? You're looking at needing 14x your salary. So someone making 115k a year would need around 1.61 million by 62. That's substantial. There's also the 4% rule floating around – basically you can withdraw 4% of your savings in year one, then adjust for inflation after that. The idea is your money lasts about 30 years. If you had a million saved, that's 40k in year one, then adjust up each year as prices rise.

Now here's where it gets interesting. Social Security at 62 is available, but claiming early comes with a real penalty. If your full retirement age is 67 and you'd normally get 2,000 a month, taking it at 62 could cut that by 30% – you're down to 1,400. That's permanent. So you end up relying more on your savings to make up the difference. But if you have other income sources – rental properties, dividend stocks, maybe some consulting work – that can really help stretch things out.

One thing people underestimate when figuring out how to retire at 62 is healthcare. Medicare doesn't start until 65, so there's this awkward three-year gap. ACA marketplace plans can be expensive, and that's before you hit 65. Fidelity estimates a 65-year-old retiring recently should plan for around 165k in healthcare costs over their remaining life. That's not trivial. You need to account for that gap somehow.

Taxes matter too. If you're pulling from 401ks and IRAs, you need a strategy. Required minimum distributions don't start until 73 (or 75 if you were born after 1960), so there's room to be strategic about when and what you withdraw. Roth conversions, withdrawal sequencing – these aren't sexy topics but they genuinely impact how much of your money you keep versus what goes to taxes.

On the practical side, budgeting for how to retire at 62 means getting real about expenses. Housing, food, travel, taxes on withdrawals – it all adds up. Some people downsize, relocate to lower-cost areas, or just cut back on spending. A diversified portfolio with dividend stocks, bonds, maybe some real estate or annuities can generate steady income without depleting principal too quickly.

The biggest thing I keep coming back to is this: retiring at 62 is totally doable, but it requires planning. You need to know your numbers, understand your income sources, think about healthcare, and have a withdrawal strategy that doesn't blow through your savings in 15 years. It's not just about hitting a number – it's about making sure that number lasts.