I’m 57 with a $1.3M portfolio and ready to walk away from work — I’ll also take Social Security at 62. Can I retire now with a comfortable income?

As you’re ahead of the curve, it’s understandable that you’re thinking about retiring earlier than your peers. A 2024 Employee Benefit Research Institute report found that the median age people retired was 62, the earliest anyone can claim Social Security.

But there are financial risks with your early retirement goal.

The problem with retiring early

Not only are you retiring five years before Social Security benefits can kick in, but 10 years before you could collect maximum benefits kick at 67. That means you’re reducing your potential monthly Social Security benefits by 30% for life. Medicare won’t kick in till you’re 65, so unless you can hop onto a partner’s plan, you will have to budget for the cost of health insurance for eight years.

You might also face a 10% early withdrawal penalty for taking money out of an IRA or 401(k) before you turn 59.

But even if you have penalty-free access to your entire $1.3 million nest egg, you still need to make it last. Financial experts have long recommended that you withdraw 4% of your savings in your first year of retirement and adjust future withdrawals for inflation. That strategy, known as the 4% rule, is designed to ensure your savings last 30 years. But increasingly, financial advisers like Suze Orman advise against it.

For one thing, if you’re retiring in good health at 57, with a family history of longevity, you may live longer than 30 years.

Reducing your withdrawals to 3.5% of your $1.3 million portfolio each year will produce an annual income of $45,500 before Social Security kicks in, but the average American aged 65 and over was spending $52,141 a year as of 2021, according to the Bureau of Labor Statistics.

There are some ways to ease into retirement, but you have to plan carefully.

Make sure you're covering all of your bases

First, create a budget that includes health coverage costs to ensure the numbers work. You might be able to lower your expenses if you’ve paid off your home, can downsize or move to a more affordable community. . Set aside at least two years of savings in case the stock market dips and hits your portfolio hard — this can also cover emergency medical bills and home and car repairs.

You can also consider quitting your full-time job to take a part-time job or side hustle until you’re 65.

With so much to consider, you may want to meet with a financial adviser to go through retirement goals and invest your savings to generate growth with less risk.