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FIRE by ageHow much do I need to retire at 55?
Retiring at 55 means planning for about 40 years. At Morningstar's 40-year starting rate of 3.3%, $50,000 a year takes $1,515,152. Two things help at 55: the rule of 55 opens your last employer's 401(k), and Social Security can start at 62.
Table by spending
| Spending a year | Savings needed | Years they last with $24,000 of Social Security from 67 |
|---|---|---|
| $40,000 | $1,212,121 | Indefinitely |
| $50,000 | $1,515,152 | Indefinitely |
| $60,000 | $1,818,182 | Indefinitely |
| $80,000 | $2,424,242 | Indefinitely |
| $100,000 | $3,030,303 | Indefinitely |
The middle column assumes the savings pay everything for 40 years at 3.3%. The right column keeps the same portfolio and adds an example benefit of $24,000 a year from 67, with a steady 3% return after inflation.
Reaching your money at 55
- The rule of 55. Leave your job in or after the year you turn 55 and that employer's plan is free of the 10% additional tax. See the rule of 55.
- IRAs before 59½. 72(t) payments or Roth conversions, or money in a taxable account, for four and a half years.
Health insurance until 65
Ten years before Medicare. COBRA can continue an employer plan, usually for 18 months, at up to 102% of its cost; after that the Marketplace or a spouse's plan. The cost belongs in your spending; see health insurance before Medicare.
These figures are illustrations worked out from stated assumptions, not forecasts. Real returns vary from year to year, and taxes, fees and the order of good and bad years change the outcome. See the disclaimer.
Questions people ask
What is needed to retire at 55?
Savings that cover your spending for about 40 years until Social Security helps. For $60,000 a year that is $1,818,182 at 3.3%, plus a plan for health insurance until 65 and for reaching retirement accounts before 59½.
Can I retire at 55 with 1 million?
$1,000,000 at 3.3% supports $33,000 in the first year, raised with inflation. With $24,000 of Social Security from 67 and a steady 3% return, $1,000,000 can pay $50,000 a year for 63.0 years.
What is the retire at 55 rule?
The IRS exception known as the rule of 55: withdrawals from the plan of the employer you leave in or after the year you turn 55 avoid the 10% additional tax.
Check your numbers
The retire early calculator and the how long will my money last calculator.
Sources
- Amy C. Arnott, "How Much Can You Safely Withdraw If You Retire Early?", Morningstar, September 15, 2026 (data as of September 30, 2025).
- Internal Revenue Service, Publication 575, Pension and Annuity Income.
- U.S. Department of Labor, Continuation of Health Coverage (COBRA).
- Social Security Administration, Retirement benefits if you were born in 1960 or later.
Keep reading
- Coast FIRE: how much you need by age
What coast FIRE means and the amount you need at 25, 30, 35, 40 and 45.
- Net worth by age in 2025: what the Fed's new survey shows
Median and average net worth by age from the Federal Reserve's 2025 survey, and what changed since 2022.
- How much do you need to retire at 40?
The portfolio you need by spending level for a 50-year retirement, what it takes to save it and how to bridge to 59½.
- Safe withdrawal rate by retirement length
Starting withdrawal rates for 30 to 50-year retirements, what they assume and what they mean for your portfolio.
Last reviewed by Asier Fernández, editor, on . Educational information only, not financial advice. How we calculate