Here's What Retiring Early Actually Means in 2026

Let’s be honest: Most of us probably wish we were in a position to retire immediately, or at least early. But that can feel impossible if you’re struggling to save for retirement.

While it’s true that some people will have to wait until their late 60s or beyond to retire, it might be easier to retire early than you expected. Here’s a closer look at when people usually quit the workforce and how you can beat the average.

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The average retirement age for men and women

The typical retirement age has held fairly steady over the last decade. The average man retires at 65, according to 2024 data from the Center for Retirement Research at Boston College, while the average woman retires at 63. So retiring early is technically retiring under these ages.

That makes it more common than you might imagine. Many people quit their jobs in their early 60s. But it might not be what you think of when you envision early retirement.

Some people think of this as retiring in your 50s or earlier. This does happen, but it’s less common, and it often requires careful planning. You have to save a substantial amount during your working years, and you also need a plan for how you’ll access your savings freely.

You’ll usually pay a 10% early withdrawal penalty for taking money out of your retirement accounts before age 59 1/2. There are a few exceptions, though. You can take substantially equal periodic payments (SEPPs) or withdraw only your Roth IRA contributions in those early years. You’ve paid taxes on this money already, so you can withdraw it tax-free at any time.

What to do if you want to retire early

If you want to retire early, the first step is to develop a game plan. Figure out when you want to retire and roughly how long you expect your retirement will last. Then, calculate how much you need to save for retirement.

Next, choose the right retirement accounts for you. For example, if you plan to retire in your late 50s, you may want to build up your 401(k). These accounts have a special rule that lets you access your savings penalty-free from your most recent employer’s account only if you retire in the year you turn 55 or later (50 for public safety workers).

Then, keep tabs on your progress as you near retirement. If you find you’re not able to keep up with your original savings plan, you may need to push your retirement date back a little bit to give yourself time to catch up.