How to Retire at 62 in 2026 With Peace of Mind

Retirement is an exciting milestone, yet it comes with important questions: “Have I saved enough?” and “Can I truly retire comfortably?” If you’re planning to retire at age 62 in 2026, the steps you take now will shape your financial freedom and peace of mind. This guide, inspired by our Secure Your Retirement podcast, walks you through how to prepare, what questions to ask, and how to build your personalized Peace of Mind Roadmap.

The Peace of Mind Roadmap: A Two-Step Approach

We often begin retirement planning by addressing foundational questions. This includes understanding your goals, taking an inventory of your financials, and clarifying expenses. Our Peace of Mind Roadmap process is designed to help you retire with confidence. It consists of two parts:

1. Gathering Data: Collecting and organizing financial information, understanding your goals, and clarifying your spending needs.
2. Building Your Plan: Analyzing your data, exploring scenarios, and developing a financial plan tailored to your needs.

Let’s break these steps down so you can start preparing your Peace of Mind Roadmap.

Step 1: Gathering the Right Data for Retirement Success

The cornerstone of any effective retirement plan is accurate and comprehensive data. Here’s what you need to consider when gathering your financial information:

Assets: Building Your Financial Snapshot

We ask clients to create a financial inventory, which helps determine if retiring at 62 is feasible. Here are the key areas to assess:

1. Cash on Hand:
   1. How much do you have in checking, savings, money market accounts, or CDs?
   2. Understand the purpose of your cash: Is it for emergencies, investments, or daily expenses?
2. Life Insurance:
   1. What types of policies do you have?
   2. Is the policy term or permanent? If permanent, is it intended for income, cash value growth, or a death benefit?
3. Annuities and Non-Qualified Investments:
   1. Are your annuities growth-oriented or income-generating?
   2. Identify other investments like brokerage accounts or stock portfolios.
4. Retirement Accounts:
   1. Document your IRAs, 401(k)s, and Roth accounts.
   2. Know your employer match for current contributions.
5. Real Estate:
   1. Evaluate the value and liabilities of your primary residence and investment properties.
6. Pensions and Deferred Compensation Plans:
   1. Understand the income stream from pensions, including cash balance plans or deferred compensation plans.

Liabilities: Understanding Debt and Cash Flow

Taking stock of debts is essential when planning to retire comfortably:

• Mortgages: Determine your payoff timeline and monthly costs.
• Car Loans: Factor in when these will be paid off.
• Other Debts: Include liabilities like credit cards or personal loans.

Income Sources: What’s Coming In?

Your retirement plan is only as strong as its income streams. These include:

• Social Security: Get an estimate of your benefits at 62, full retirement age (67), and age 70.
• Part-Time Work or Consulting: Will you continue working to supplement your retirement income?
• Rental Income: Calculate how much income investment properties generate.

Expenses: Breaking Down Spending

A well-rounded retirement plan accounts for three categories of spending:

1. Essential Needs:
   1. These include fixed costs like mortgage payments, utilities, and groceries.
2. Wants:
   1. Travel, hobbies, dining out, and memberships fall under this category.
3. Legacy Giving:
   1. Charitable donations and gifts to family are also part of your financial picture.

Tip: Focus on net spending—what you need monthly after taxes. This ensures a realistic view of your financial needs.

Estate Planning Essentials

A solid plan for retirement includes preparation for the unexpected. Ensure you have up to date:

• Will
• Power of Attorney
• Healthcare directives
• HIPAA release forms

These documents protect you and your loved ones in the event of unforeseen circumstances.

Step 2: Building and Analyzing Your Peace of Mind Roadmap

Once you’ve gathered the data, it’s time to analyze it and build your Peace of Mind Roadmap. This is where we apply financial modeling to answer the critical question: “Does my plan work?”

Scenario Analysis

In your Peace of Mind Roadmap, we create various scenarios to test the strength of your plan. For example:

• What if inflation rises faster than expected?
• How will healthcare costs impact your savings?
• Can your assets sustain your lifestyle if the market underperforms?

By running these scenarios, we identify risks and opportunities in your plan.

The Importance of Regular Reviews

Even the best retirement plans require regular updates. We recommend reviewing your plan annually. By monitoring your financial picture, you can adapt to changes in the economy, taxes, or your personal goals.

Addressing Common Retirement Concerns

As you plan your retirement at 62, here are answers to some common questions:

Is Social Security Enough to Retire at 62?

Social Security alone is rarely sufficient to cover retirement expenses. By understanding your benefits and supplementing them with other income sources, you can create a balanced plan.

What Happens If I Outlive My Savings?

Longevity risk is a top concern for retirees. Solutions like annuities, disciplined withdrawals, and proper investment strategies help your assets last throughout retirement.

How Do I Plan for Market Downturns?

Diversifying your portfolio and maintaining a cash reserve are key strategies to protect your retirement savings during volatile markets.

The Role of Professional Guidance

Retiring comfortably at 62 is achievable with the right planning and guidance. A financial advisor can help you:

• Align your investments with your goals.
• Minimize taxes through strategies like Roth conversions or tax-efficient withdrawals.
• Create a sustainable withdrawal plan that protects your principal.

Final Thoughts on Retiring at 62 in 2026

Retiring at age 62 is a dream for many, but it requires intentional planning and preparation. By gathering accurate data, understanding your expenses, and building a personalized plan, you can achieve peace of mind and enjoy the retirement you’ve worked hard for.

Schedule your complimentary call with us to ask any questions you may have from this blog. If your questions don’t all fit in a 15-minute call, we will guide you to the next steps to get some answers.

Plan wisely, stay informed, and secure your future. Remember, the key to retiring at 62 in 2026 with peace of mind is creating a comprehensive plan and sticking to it.