While the Social Security Administration (SSA) defines early retirement as collecting federal benefits before reaching full retirement age (FRA), financial experts who weighed in define it as no longer depending on earned income for lifestyle support and being able to leave full-time work before age 59½ years old.
The FRA in the United States, according to the SSA, is 67 for Americans born in 1960 or later.
“Age is just one part of it,” Charlotte, North Carolina, financial planner and educator Nadia Vanderhall told NTD. “What early retirement looks like is personal. Think of retirement as a bill you’re pre-paying that covers future rent, groceries, and life costs now so that your future self doesn’t have stress or fear.”
Although there’s no one-size-fits-all benchmark that declares someone an early retiree, SummitFinancial.com private wealth adviser and CFP Joseph Spada’s clients often aim to have 25 to 30 times their expected annual expenses saved.
“I encourage individuals to take a holistic look at all sources of retirement income including investments, Social Security, and any passive income streams to tailor their savings strategy accordingly to align with their personal goals and lifestyle,” Spada told NTD.
In addition, Spada said considering how to handle health care costs, inflation, and market volatility is crucial.
“This isn’t about never working again," Vanderhall said. "It’s about designing a life where your money can carry the weight—and your time becomes your own. That can happen at 45, 55, or even 62. The real win is when you have options.”
To achieve early retirement, Vanderhall advises creating monetary clarity in order to alleviate feelings of being overwhelmed.
“If you don’t know what you’re working toward—or how your current habits align with your future needs—it’s easy to feel stuck,” Vanderhall added. “Most people aren't taught how to run the numbers, build income layers, or shift their money to match their goal.”
The biggest challenges to achieving early retirement are often real-life obstacles, such as debt, elder care, housing, and longevity.
Since 1940, when the SSA began paying benefits to retired workers, the longevity of older Americans has intensified.
"With people living longer, retirees need their savings to stretch further," Spada added. "Outliving your assets can become a real concern. The key is having the financial flexibility to choose how you spend your time, and ensuring your plan is designed to support both your aspirations and your longevity."