The retirement savings you'll need to spend $10,000 at age 55, 62 and 65. Can you afford to retire in 2027?

But there’s a way more important number many workers are overlooking — the age at which they plan to retire.

That’s because there’s a huge difference between retiring at 55 and retiring at 65. With 10 fewer years to save for retirement — and a decade more of life to fund — the “magic number” for what you’ll need changes drastically.

Many working Americans dream of retiring early. But as recent studies show, most of them have no idea how far their nest egg will take them. Say you want $10,000 a month in retirement — here’s what you’ll need saved to live comfortably once you clock out.

But be prepared: the math is unforgiving.

Age 55: You’re on your own, kid

Retiring in your mid-50s sounds ideal. You still have much of the health and energy needed to fully enjoy the leisure time you’ve earned, with decades of enjoyment ahead.

But early retirement comes with two major drawbacks: You don’t qualify for Medicare or Social Security benefits. That means you need to buy health insurance on the open market and cover the full cost yourself.

The average American pays $625 a month for health insurance in 2026, according to the Kaiser Family Foundation (KFF). For a couple, the cost is $1,250 per month.

That’s $15,000 a year just for health insurance.

Let’s say — aside from health needs — that your household expenses are $10,000 a month. That means you’ll need your portfolio to generate $135,000 in annual passive income over the year.

Following the 4% retirement rule, that means you need about $3.4 million tucked away.

However, even the inventor of the 4% rule says that’s no longer enough; he’s now recommending 5.5% might be a safer rate. That would reduce how much you need to save by about $900,000 — but with a longer time horizon, you’d definitely be asking a lot of your investments. And you’d be at a much higher risk of running out of money in retirement.

Of course, this simple calculation is just the tip of the iceberg. If you or your partner have chronic medical conditions, your healthcare premiums could be substantially higher. Many Americans are surprised by how much their healthcare costs add up in retirement.

And if your wealth is tied up in pre-tax retirement accounts, like a 401(k) or traditional IRA, you’ll also need to account for taxes on withdrawals.

This all means early retirement is an expensive dream for most people.

It’s why the average age of retirement is closer to 62, according to a 2024 study by MassMutual.

Age 62: Social Security has your back

It’s probably not a coincidence that 62 is the average retirement age. It’s the age at which Americans first become eligible for Social Security.

That monthly benefit is central to most Americans’ retirement plans. As of July, the average monthly Social Security check for retired workers was $2,085.98, according to the Social Security Administration (SSA).

Using the previous example, if you and your partner collect a total $4,170 a month in Social Security benefits, you’ll need $87,000 in annual passive income to cover living expenses and insurance premiums. That’s nearly $50,000 less than in the retire-at-55 scenario.

To retire comfortably at this age (assuming you’re following the 4% rule), you’ll need a $2.18-million nest egg. In other words, by delaying retirement a few years, your “magic number” drops by more than $1 million.