Can I Retire at 55?
Age 55 unlocks a special rule most people don't know about. Here's your number and how to bridge to Medicare.
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What this calculator does
Retiring at 55 has one big advantage: the Rule of 55 lets you withdraw from your current employer's 401(k) penalty-free if you leave that job in or after the year you turn 55. You'll still have a 10-year gap before Medicare at 65 to plan for. This calculator shows the nest egg you need to retire at 55 and whether you're on track.
Common questions
How much do I need to retire at 55?
Roughly 25× your annual spending using the 4% rule — so $60,000 a year of spending needs about $1.5 million. A retirement starting at 55 can last 35+ years, so a slightly more conservative 3.5% withdrawal (about 28×) is worth considering. Use your own numbers above.
What is the Rule of 55?
If you leave your job during or after the calendar year you turn 55, the IRS lets you take withdrawals from that employer's 401(k) without the usual 10% early-withdrawal penalty. It applies only to that plan, not to IRAs — so people sometimes leave 401(k) money in the plan rather than rolling it to an IRA.
How do I cover health insurance until Medicare?
Retiring at 55 leaves a 10-year gap before Medicare at 65. The ACA marketplace is the most common bridge — and because premiums are subsidized based on income, early retirees who live partly off taxable savings often qualify for meaningful subsidies. A spouse's employer plan is another route.
Can I retire at 55 with $1 million?
It depends entirely on your spending. At a 4% withdrawal, $1 million supports about $40,000 a year. If you spend less than that, $1 million can work; if you spend more, you'll need a larger nest egg. Enter your spending above to see exactly where $1 million lands for you.