Can you retire at 62 with $1 million?
Comfortably yes: at $1 million you're funded to roughly 123% of your $5,000-a-month target, which buys real choices rather than a tightrope. That surplus is really optionality: you could retire a little earlier, spend somewhat more than planned, or earmark the extra as a legacy.
A 4% first-year withdrawal from $1 million comes to around $3,333 a month ($40,000 a year), then steps up with inflation. Social Security is claimable now at $1,900 a month, so it immediately offsets part of the $5,000 target — together they bring income to about $5,233 a month. Claiming at 62 locks in the early-claim rate; each year of delay to full retirement age adds 6–8% to the monthly check permanently, so the timing decision is live right now.
At 62 the math tilts in your favor — Social Security is claimable now, and Medicare is 3 years away. The biggest decision is whether to claim SS immediately or bridge a few more years for a permanently higher benefit: each year of delay from 62 to 70 adds roughly 6–8% to the monthly check for life. With a 28-year horizon, a delay that costs 3 years of bridge payments often pays back in total SS income before your mid-seventies. At $1 million, spending flexibility is the plan's most powerful single tool — more effective than chasing higher investment returns. A $200–$400-a-month reduction in the target lifestyle typically extends portfolio longevity by multiple years, because the compounding effect of a lower draw rate runs for decades. Building 12 months of living expenses in cash so the portfolio isn't sold into weakness in a down market, and treating the monthly spending figure as a ceiling rather than a floor, converts what might be a tight plan into a durable one over a 25–35 year horizon. This balance level also rewards careful SS claiming timing: the benefit covers a large share of spending, so maximizing it matters.
The surplus hands you levers most retirees wish they had — an earlier exit, a more generous budget, or a bigger safety margin against a long life. Since the Social Security claiming decision is live right now, model it across at least three scenarios: claim at 62, at your full retirement age, and at 70. The monthly benefit difference can exceed 75%, and the break-even in total lifetime SS income typically falls in your mid-seventies — which is well within a 28-year horizon. At your planned spending the money is projected to last through age 90 and beyond.
Frequently asked questions
Is $1 million enough to retire at 62?
On these assumptions, yes — $1 million at 62 funds about 123% of a $5,000-a-month lifestyle and the money is projected to last through age 90 and beyond. At 62 the funded ratio benefits from Social Security being claimable — but how much it helps depends on when you take it. Delay past 62 and the portfolio works harder for a year or two; claim now and you trade a bigger future check for immediate relief.
Can you live off the interest of $1 million?
At a 4% withdrawal rate, $1 million provides about $3,333 a month ($40,000 a year) without depleting the principal in real terms. At $1 million, the 4% draw ($3,333) covers most but not all of the $5,000 target. Social Security's $1,900 a month bridges the gap — together they reach the full lifestyle target without relying on principal drawdown in the early years. The combined-income view matters more at this balance than at higher ones — SS does a larger share of the work, so when you claim and how much you receive are the two highest-leverage variables still in your hands.
How long will $1 million last in retirement?
In this scenario the money is projected to last through age 90 and beyond. At 62, Social Security is baked in at $1,900 a month — the reduced-benefit figure for claiming now. Every year of delay to full retirement age adds roughly 6–8% to the benefit permanently. Bridging one to five more years from the portfolio to claim a higher SS benefit can improve the depletion outlook more than a larger starting balance would. Medicare starts at 65, removing the last major variable cost from the budget. At $1 million at this stage, Social Security's imminent arrival as a guaranteed income stream is the variable that most improves the long-run outlook — the portfolio's required draw drops materially the month it starts.
How much does Social Security change the answer?
A lot. At 62, Social Security delivers $1,900 a month — the early-claiming rate. Each year of delay to full retirement age adds roughly 6–8% to the benefit permanently, and the break-even between claiming now and claiming at 67 typically falls in your mid-seventies. With $1 million supporting a bridge, delaying even 2–3 years raises lifetime SS income and reduces what the portfolio must supply every month thereafter. Use the calculator to model your specific claiming scenario.
What is the 4% rule?
The 4% rule is a planning guideline: withdraw about 4% of your starting balance in year one — $40,000 on $1 million — then adjust that amount for inflation each year. It's a starting point, not a guarantee; you can set a more cautious or more aggressive withdrawal rate in the assumptions above.
Worked examples
Each scenario below is computed by the same retirement engine that powers the interactive calculator above — no hand-typed numbers.
SS delay to FRA — how $1M bridges 5 years without SS income
Retiring at 62 with $1M, spending $60,000/yr, delaying Social Security to Full Retirement Age at 67. The portfolio covers full spending for 5 years before the permanently larger SS benefit starts.
Projected nest egg
$1,000,000
Required (today's $)
$1,311,547
Funded ratio
76%
Monthly income
$3,333/mo
4% of $1M generates $40,000/yr — below the $60,000/yr spending target but closer than at $500k where the gap was proportionally larger. Covering $60,000/yr from $1M for 5 years of SS delay draws roughly $175,000–$200,000 before the FRA-level SS benefit starts. That is a 17–20% portfolio reduction — significant but recoverable on a 28-year plan. At $500k, an equivalent bridge depleted 34–40% of the portfolio, a more serious impairment. At $1M, SS delay to FRA is a real cost but typically worth the permanently larger benefit for someone in average or better health, especially since the remaining $800k–$825k still generates $32,000–$33,000/yr at 4% alongside the full SS benefit.
Early SS claiming with Roth conversion — the alternative strategy
Same $1M at 62, spending $60,000/yr. Claiming SS immediately ($1,900/mo) and using the freed portfolio capacity to run modest Roth conversions in the 62–73 window.
Projected nest egg
$1,000,000
Required (today's $)
$813,159
Funded ratio
123%
Monthly income
$5,233/mo
Claiming SS at 62 immediately offsets $22,800/yr of spending, reducing the portfolio draw to $37,200/yr — below the 4% SWR boundary. With the portfolio now drawing at a sustainable rate from day one, there is capacity to layer modest Roth conversions on top: SS occupies part of the bracket, but additional conversion amounts can still fill the remaining space before the next marginal rate. This is the alternative strategy to delay: accept the permanently smaller SS benefit in exchange for a healthier portfolio trajectory and an immediate conversion opportunity funded by the reduced portfolio draw. The two strategies produce materially different funded ratios depending on longevity; the calculator shows the trajectory.
Funded ratio at age 62: spending vs portfolio size ($1M neighborhood)
Funded ratio from age 62 with $1,900/mo Social Security, 5% post-retirement return, 3% inflation. 100%+ means fully funded through age 90.
| Annual spending | $750,000 | $1,000,000 | $1,250,000 | $1,500,000 |
|---|---|---|---|---|
| $48,000 | 136% | 182% | 227% | 272% |
| $60,000 | 92% | 123% | 154% | 184% |
| $72,000 | 70% | 93% | 116% | 139% |
| $84,000 | 56% | 75% | 93% | 112% |
At $1M and $60,000/yr, the funded ratio is near the feasibility boundary. Each $250,000 of additional portfolio or $12,000/yr reduction in spending makes a meaningful difference. The table shows whether the current plan has margin or needs adjustment.
What affects your retirement outcome
SS claiming decision — delay is viable at $1M unlike $500k
At $500k, SS delay from 62 to FRA depletes roughly 34% of the starting portfolio before the higher benefit arrives — a high-risk bridge at that portfolio size. At $1M, the same 5-year bridge depletes roughly 17–20%, leaving a meaningful portfolio intact alongside the larger SS benefit. This is a categorical difference in the delay viability calculation. At $1M, the SS delay decision should be made on actuarial grounds (longevity expectations, health status, break-even age) rather than bridge-cost grounds — the portfolio can absorb the bridge. At $500k, bridge cost often dominated the analysis; at $1M, it should not.
3-year Medicare gap — final healthcare bridge
Medicare begins at 65, leaving 3 years of ACA or COBRA coverage from 62 to 65. At $1M with SS income, MAGI may fall within subsidy-eligible ranges depending on draw-order — making ACA the most cost-effective option. A 62-year-old without employer coverage typically pays $400–$900/month net for a mid-tier ACA plan with subsidy eligibility. Including this in the spending estimate for the 62–65 period prevents overstating the funded ratio. After 65, Medicare replaces private coverage but is not free: Part B premiums, Part D, and supplemental coverage add $4,000–$9,000/yr.
11-year RMD window — Roth conversion from 62 to 73
$1M in a traditional IRA at 62, drawing $37,200/yr (after SS offsets), grows to approximately $1.1M–$1.2M at 73 — generating a first-year RMD of $41,000–$45,000. Added to SS, total ordinary income may approach or clear IRMAA thresholds in some years. The 11-year window from 62 to 73 allows systematic conversion to reduce this: modest annual conversions of $15,000–$25,000/yr, sized to fit available bracket space above SS income, meaningfully reduce the traditional balance before forced distributions begin. The conversion amounts are smaller than at larger portfolio sizes, but the IRMAA risk is also smaller — making this a medium rather than high-priority planning concern.
Common retirement planning mistakes
- •Applying the same SS claiming logic as at $500k. At $500k, the bridge cost of delay often made early claiming the better choice. At $1M, the bridge cost is proportionally smaller and the actuarial case for delay operates independently. The SS claiming decision at $1M should be driven by longevity expectations, not by bridge-survival concern.
- •Omitting the 3-year ACA healthcare cost from the spending estimate. A 62-year-old without employer coverage faces real premium costs for 3 years before Medicare. ACA coverage at income levels consistent with $1M in assets can qualify for significant subsidies — but even with subsidies, healthcare is not free. Include the net premium in the spending input.
Practical takeaways
- ✓Run the calculator with "other monthly income" set to $0 (SS delayed) and compare the funded ratio to the default (SS at $1,900/mo). At $1M, both scenarios should be viable, confirming delay is a real option. The SS claiming decision at this level is actuarial — use SSA's break-even analysis at ssa.gov to assess the delay trade-off for your situation.
- ✓Check ACA subsidy eligibility for the 62–65 window at healthcare.gov. At $1M with modest portfolio draws, MAGI may fall within subsidy ranges — particularly if spending is funded partly from taxable brokerage (capital-gains rates) rather than entirely from traditional IRA distributions. The 3-year ACA cost should be in the spending input.
- ✓Begin modest Roth conversions from 62 onward, regardless of the SS claiming decision. At $1M, even $15,000–$20,000/yr fills bracket space above SS income and meaningfully reduces the traditional balance subject to RMDs at 73 over an 11-year window.
More retirement questions
Can I retire at 62 with $1 million?
At $60,000/yr spending, the plan is near the feasibility boundary — 4% of $1M generates $40,000/yr, and Social Security adds $22,800/yr once claimed. The funded ratio on this page gives the specific answer. The central decisions are SS claiming strategy (delay is viable at $1M unlike $500k), healthcare cost from 62 to 65 (3 years of ACA premiums to include in spending), and whether to use the 11-year window before RMDs for modest Roth conversions. Spending discipline matters: if spending exceeds $60,000/yr, the portfolio draws above its sustainable rate and the funded ratio declines.
How does SS delay from 62 to 67 work with $1 million in savings?
Delaying SS from 62 to 67 (FRA) requires the portfolio to cover $60,000/yr for 5 additional years before the permanently larger SS benefit starts. On $1M, this depletes roughly $170,000–$200,000 — a 17–20% reduction in starting balance. The remaining $800k–$825k at 4% generates $32,000–$33,000/yr, supplemented by the FRA-level SS benefit. Whether this trade-off is worth it depends on expected longevity: the break-even age at which delayed SS produces more cumulative income is typically the mid-to-late 70s. At $1M, the bridge cost is manageable and delay should be evaluated on health and longevity grounds, not financial necessity.
What Roth conversion strategy works for $1 million at age 62?
With $1M at 62 and SS income starting (or planned to start), conversion opportunities are more limited than at larger balances — SS income occupies the lower bracket positions, reducing available space. Modest conversions of $15,000–$25,000/yr above SS income can still fit within current marginal rates without jumping to the next tier, depending on filing status and spending level. The 3 years from 62 to 65 (before Medicare and IRMAA) are the most favorable sub-window: no IRMAA look-back affecting first-year Medicare premiums for conversions at 62. After 65, continue converting within IRMAA ceilings. Total conversion over 11 years at $15,000–$25,000/yr moves $165,000–$275,000 from traditional to Roth — meaningful reduction in the RMD at 73.
What this calculator does — and does not — compute
Retirement projections involve inputs that come from government agencies, employers, and tax rules this tool cannot access. Here is exactly what you are providing versus what this calculator handles on its own.
- 1.Social Security is not calculated here. You enter your own monthly estimate in the “Other monthly income” field. This tool does not access your earnings record or apply Social Security benefit formulas. To get your actual personalized estimate, create a free account at ssa.gov/myaccount.
- 2.Required Minimum Distributions (RMDs) are not modeled. The drawdown projection shows balance depletion under your stated withdrawal rate, but it does not enforce IRS RMD schedules (which begin at age 73 for most accounts) or calculate RMD amounts from IRS life-expectancy tables. If RMDs apply to you, actual withdrawals may differ from the projection shown.
- 3.Pension income is an input you provide, not a computed output. If you have a defined-benefit pension, enter your expected monthly payment in “Other monthly income.” This tool does not compute pension formulas (FERS, CalPERS, military, state, or private plan formulas) and does not connect to any employer or government pension system.
- 4.Withdrawal tax treatment is simplified and illustrative. The projection shows gross withdrawals from your portfolio. It does not calculate federal or state income taxes on traditional 401k or IRA distributions, does not model Roth tax treatment, and does not account for RMD-driven bracket changes. Actual after-tax income will differ. For tax planning specific to your situation, consult a qualified tax professional.
- 5.Any depletion result is a projection, not a guarantee. “How long your money lasts” and similar outputs are calculated under your stated return rate, inflation rate, and spending assumptions. Actual outcomes depend on market performance, sequence of returns, unexpected expenses, and life events that cannot be modeled in advance. A projection is a planning tool, not a promise.
This calculator is for educational and planning purposes only. It does not constitute financial, tax, or investment advice.