Is 58 a Good Retirement Age? Exploring the Feasibility of Early Retirement

Retirement sounds amazing to a lot of us who have to work every day. Early retirement sounds like an even better idea. We would have far more time to enjoy the good life if we retired ten years earlier rather than working until we were in our 60s.

Generation Z seems to agree. The 2022 Investopedia Financial Literacy Study indicates that 57 is the median age at which people under the age of 25 anticipate retiring.

The question is: How much money will it take to retire at age 57, which is ten years ahead of the full Social Security retirement age for those born after 1960?

Every year, Social Security benefits are modified in accordance with the rise in living expenses. The increase for 2024 is 3. 2%. In 2023, the increase was a historically high 8. 7% due to inflation.

Retirement at 58 is earlier than the average retirement age of 67, which can make it difficult to achieve financially. However, with careful planning and disciplined saving, retiring at 58 can be a reality. This article will explore the feasibility of retiring at 58, providing insights into the financial requirements, potential challenges, and strategies for success.

Financial Requirements for Retiring at 58

To retire comfortably at 58, you will need to have accumulated a significant nest egg. According to a NerdWallet survey, Americans who plan to retire early aim to have an average of $1.11 million saved by the time they reach 58. This amount assumes an annual retirement income of $50,500, excluding taxes and investment returns.

Challenges of Retiring at 58

Retiring at 58 presents several challenges, including:

  • Reduced Social Security benefits: Claiming Social Security before the full retirement age of 67 results in a reduced monthly benefit.
  • Higher healthcare costs: Early retirees may face higher healthcare costs before they become eligible for Medicare at age 65.
  • Longer retirement period: A longer retirement period means your retirement savings need to last longer, increasing the risk of outliving your funds.
  • Potential for unexpected expenses: Unexpected expenses, such as medical emergencies or home repairs, can quickly deplete retirement savings.

Strategies for Retiring at 58

If you are considering retiring at 58, here are some strategies to help you achieve your goal:

  • Start saving early and consistently: The earlier you start saving, the more time your money has to grow through compounding interest. Aim to save at least 15% of your income for retirement.
  • Maximize your retirement contributions: Contribute the maximum amount allowed to your employer-sponsored retirement plan, such as a 401(k) or 403(b). Consider contributing to an IRA as well.
  • Invest wisely: Choose a diversified investment portfolio that aligns with your risk tolerance and time horizon. Consider working with a financial advisor to create an investment plan.
  • Downsize your lifestyle: Reducing your expenses before retirement can help you stretch your retirement savings further. Consider downsizing your home, selling unnecessary belongings, and finding ways to cut back on discretionary spending.
  • Explore part-time work options: Working part-time in retirement can supplement your income and provide additional social interaction.
  • Create a comprehensive retirement plan: Work with a financial advisor to create a personalized retirement plan that takes into account your financial goals, risk tolerance, and potential expenses.

Retiring at 58 is an ambitious goal that requires careful planning and disciplined saving. By understanding the financial requirements, potential challenges, and strategies for success, you can increase your chances of achieving a comfortable and fulfilling early retirement. Remember, it’s never too early to start planning for your future.

Frequently Asked Questions

Q: How much do I need to save to retire at 58?

A: The amount you need to save to retire at 58 depends on your desired retirement lifestyle, expenses, and investment returns. However, a general rule of thumb is to have around 25 times your annual expenses saved by the time you retire.

Q: What are the risks of retiring early?

A: The risks of retiring early include reduced Social Security benefits, higher healthcare costs, a longer retirement period, and potential for unexpected expenses.

Q: How can I reduce the risks of retiring early?

A: You can reduce the risks of retiring early by saving more money, investing wisely, downsizing your lifestyle, and exploring part-time work options.

Q: What are some tips for planning for early retirement?

A: Some tips for planning for early retirement include starting saving early, maximizing your retirement contributions, investing wisely, downsizing your lifestyle, and creating a comprehensive retirement plan.

Additional Resources


The information provided in this article is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to consult with a qualified financial advisor to discuss your specific financial situation and retirement goals.

Is It Worth Retiring Early?

Depending on a number of variables, including the amount of money saved for retirement and the type of retirement lifestyle desired, each person will have to determine whether or not it is worthwhile to retire early. The freedom to travel without time constraints, the opportunity to launch one’s own business, improved health at a younger age to enjoy retirement, and more time to spend with loved ones are all advantages of retiring early.

What Is the Average 401(k) Balance for People Age 65?

In 2022, the average account balance for Vanguard members 65 years of age and older was $232,710. The median balance for the age group was $70,620.

In 2022, the average account balance for all Vanguard members was $112,572. That represents a decrease of 2020% over the previous year and is primarily due to declines in the stock and bond markets.

The median account balance in 2022 was $27,376.

Average Retirement Savings By Age – How Much Should You Have Saved by 55 60 65 ?

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