Can I retire at 55? It’s a question you might be asking yourself if you’re hoping to make an early exit from the workforce. While normal retirement age for most people usually means 65 or older, early retirement could give you more time to do things you enjoy or explore new interests. But it’s important to build a solid financial foundation before leaving your day job behind.
Can I Legally Retire at 55?
There’s nothing in the retirement rulebook that says you can’t retire at 55 years old. In fact, some members of the FIRE (financial independence, retire early) movement aim to retire as early as 40. So, it’s perfectly legal to retire in your mid-50s if that’s your goal.
Can I Retire at 55 and Collect Social Security?
Social Security retirement benefits can be an important part of your financial puzzle. These benefits are designed to provide monthly income in addition to any income you have from qualified retirement accounts, taxable investment accounts, annuities or other sources.
Saving money in a 401(k) and/or Individual Retirement Account can help to fund your early retirement goals. But you may run into a snag when trying to take money from those accounts before age 59-and-a-half.
How Much Money Do I Need to Retire at 55?
Planning to retire at 55 is different from planning to retire at 65 or older for one very important reason: You’ll need more money to last you through your old age. If you were to retire at 65 and live to age 90, your money would need to last 25 years. But if you’re retiring at age 55 instead, your savings now needs to be able to stretch for 35 years.