How to retire at 58

1 min readLast updated January 24, 2024by Unbiased team

Covering how much money is needed, potential expenses, average savings, and ways to work toward your goal, we take a closer look at how to retire at 58.


  • Retirement at 58 is earlier than the average retirement age, which can make it difficult. 

  • You should save around $1,11 million for a $50,500 annual retirement income, not including tax or other investment returns.  

  • Ask a financial advisor to help you create a robust early retirement plan.  

The average planned retirement age of Americans with household incomes of $100,000 or more who have not retired yet is 58, according to a NerdWallet survey.  

This is only a few years before the current average retirement age of 61, and it’s almost 10 years earlier than the average expected retirement age of 66, according to a Gallup poll

Does this mean that retiring while still in your 50s is nothing but a dream? Not at all. Find out how to retire at 58. 

Can I retire at 58? 

The question, “Can I retire at 58,” isn’t a matter of the law, as there is no legally mandated retirement age. Instead, it comes down to whether you can support yourself for the rest of your life.  

Retiring at 58 isn’t easy if you haven’t saved enough and do not intend to work during your golden years. However, if you create and stick to a solid early retirement plan, it is a possibility.  

Speak to a financial advisor about your options and for assistance with planning for your retirement. 

How much money do I need to retire at 58? 

This brings us to one of the most important questions – how much money do I need to retire at 58? The answer depends on your expenses. 

Consider how much you might expect to pay for housing (whether mortgage payments or rent), food, clothing, utilities, transportation, entertainment, taxes, and more.  

To give you an idea, here are the average annual expenses of Americans aged 65 and older in 2021, as presented by the Bureau of Labor Statistics: 

ExpenseAverage Amount Spent In 2021
Housing $18,872
Utilities, fuel, public services $3,921
Health care $7,030
Transportation $7,160
Food at home $4,497
Dining out $1,994
Personal insurance and pensions $2,850
Entertainment $2,889
Clothing and services $986
Reading materials $138
Total $50,337

Next, consider your current income and what you would like your annual retirement income to be.  

Some financial advisors suggest multiplying your desired annual retirement income by 22 for a basic answer to the question, “How much money do I need to retire at 58?” This takes you to a little more than the average American’s life expectancy.  

If you want an annual retirement income of $50,500 per year or $4,208.33 per month, you should aim to save approximately $1,11 million ($50,500 x 22 = $1,111,000) before you turn 58.  

Remember to factor in Social Security benefits and any other benefits or income you might receive during retirement. 

What are the average retirement savings at 58? 

The average retirement savings at 58 are approximately $537,560, according to the Federal Reserve’s 2022 Survey of Consumer Finances. This figure does not cover the average annual expenses of American retirees.  

Knowing how to retire at 58 means knowing how to go beyond average in preparing for your golden years.  

A regulated financial advisor can assist with drawing up a comprehensive early retirement plan. 

Saving for retirement at 58: How do I do it? 

Early retirement might be nothing more than a dream if you don’t learn how to start saving for retirement, especially if you plan on entering your golden years when you turn 58. A 401(k), IRA, or similar retirement account can make a significant contribution to your retirement income.  

You can start making penalty-free withdrawals from your 401(k) when you turn 59½, so you will need to ensure you save enough money to support yourself for a year and a half before you reach that age.  

Let’s look at a few other tips for saving to retire at 58: 

  1. Estimate your retirement expenses: As mentioned above, take time to envision what your retirement expenses might be. These depend on your personal needs, lifestyle, where you live, and other factors that influence the cost of living. Remember to factor in inflation and possible increases in your standard of living. This can give you a sense of how much to budget for. 

  2. Make provision for healthcare: If you go into retirement at 58, you won’t become eligible for Medicare for another seven years when you turn 65. If your employer does not cover employees’ healthcare costs after retirement, find out about private health insurance or ensure you budget for medical expenses in other ways. Remember, Medicare reduces but does not cover expenses entirely. 

  3. Be Social Security savvy: You can start collecting Social Security benefits when you turn 62. However, those payments will be smaller than what you will get if you wait until the full Social Security retirement age, which is 67. If you wait until you turn 70, you will be entitled to 124% of the monthly benefits that you would have received if you had started collecting at age 67. 

  4. Manage your investment portfolio’s asset allocation: If you have an investment portfolio, think about how long it’s going to need to sustain you. Speak to a financial advisor about asset allocation. Some advisors say that portfolios that contain equities support higher safe withdrawal rates than portfolios that are bond-heavy. If you haven’t included an investment portfolio in your plan to retire at 58, seek out the advice of a trusted financial advisor. 

Speak to a retirement expert 

Early retirement takes careful planning, even if retirement at 58 isn’t all that far away from penalty-free 401(k) withdrawals, Social Security benefits, and Medicare eligibility.  

If you want to have a comfortable lifestyle after retirement, there’s a good chance you’re going to rely on several different strategies to make it happen.  

Seek a financial advisor to learn more about retirement. Let Unbiased match you with an advisor for expert financial advice. 


Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.