When Should You Retire? A Simple Framework

Run your number above, then walk through the four questions that actually decide the timing.

Annual income gap
Nest egg needed

Educational estimate. Excludes inflation, taxes, and changing expenses; see the inflation-adjusted calculator for a fuller picture.

Question 1 — do you have your number?

Start with how much you need saved to cover the gap between your spending and guaranteed income like Social Security or a pension. The calculator above estimates that target. If your savings are at or above it, timing becomes a choice; if not, it tells you how much longer you likely need to work.

Question 2 — what happens to healthcare?

Medicare doesn't start until 65. Retiring earlier means bridging healthcare yourself — through a spouse's plan, COBRA, or the marketplace — and that cost is easy to underestimate. Price it out before picking a retirement date, especially if you're retiring before 65.

Question 3 — what does claiming early or late cost you?

Social Security and many pensions pay less if you claim before full retirement age, and can pay more if you delay. The break-even calculator and early retirement reduction calculator show what timing costs or gains you.

Question 4 — can your portfolio survive a bad first few years?

Retiring right before a market downturn is one of the biggest risks in retirement planning — withdrawing from a shrinking portfolio early can do lasting damage. The withdrawal rate calculator and how long will savings last calculator help you stress-test the plan.

Putting it together

There's rarely one perfect date — it's a trade-off between working longer for a bigger cushion and having more healthy years to enjoy retirement. Running the numbers above at a few different ages usually makes the right window obvious.

Common questions

Is there a magic retirement age? No — 65 is a healthcare milestone (Medicare) and full retirement age varies by birth year, but your real answer depends on your own numbers.

Should I retire mid-year? Sometimes useful for maxing out a final year of contributions or benefits — check your specific plan's rules.

What if the market drops right after I retire? This is sequence-of-returns risk — a cash cushion or flexible spending in the first few years helps protect against it.

All retirement calculators

Social Security Taxation → Guide: How SS Is Taxed → Net Worth → 401(k) Growth → Traditional IRA → 72(t) SEPP → FIRE Number → Guide: Tax on 401(k) Withdrawal → Fixed Annuity → Deferred Annuity → Annuity vs CD → Guide: Immediate Annuity Income → Guide: Should You Take a Buyout → Guide: SS Spousal Benefits → Guide: Pension COLA Raises → Guide: How Much to Retire → Guide: How a Lump Sum Is Calculated → Guide: Lump Sum vs Monthly → Guide: How to Calculate Your RMD → Guide: Early Withdrawal Penalty → Pension Lump Sum Tax → Interest Rate Impact on Lump Sum → Early Retirement Reduction → Roth Conversion → Inherited IRA (10-Year Rule) → TSP (Thrift Savings Plan) → Cash Balance Pension → QDRO / Divorce Pension Value → Pension Lump Sum vs Monthly → Pension Buyout / Commuted Value → Pension Survivor Benefit → Pension COLA → Immediate Annuity Payout → Annuity vs Lump Sum → Annuity Present Value → How Long Savings Last → Withdrawal Rate → How Much to Retire → Income Gap → Inflation Impact → Social Security Break-Even → RMD (Required Minimum Distribution) → Social Security Spousal Benefit → Pension vs 401(k) Rollover → Early Withdrawal Penalty → Pension Maximization → 403(b) Retirement Calculator → 457(b) Retirement Calculator → Rule of 55 Calculator → Backdoor Roth IRA Calculator → Social Security Claiming Age Optimizer → Federal Pension (FERS) Calculator → Net Unrealized Appreciation (NUA) →