I'm 62 With $900,000 in Savings. Should I Retire Now, or Wait?

Retiring at 62 with $900,000 in savings is doable -- if the numbers work in your favor.

The key is knowing whether your investments, Social Security benefits, and healthcare plan can realistically cover your lifestyle for the next few decades. That takes some math, a clear picture of your future expenses, and a plan that you can feel confident about.

Here are a few things to consider to help make the right call.

Estimate your retirement income using the 4% rule

A common rule of thumb for retirement planning is the 4% rule. This strategy suggests that you can safely withdraw 4% of your nest egg each year without running out of money over a 30-year period.

So if you have $900,000 saved, you're looking at:

• $36,000 per year in withdrawals
• That's about $3,000 per month before taxes

The 4% rule assumes that your investments are balanced (with a mix of stocks and bonds) and that you can adjust the amount you withdraw each year to match inflation.

That $36,000 doesn't include Social Security, which can make up the rest of your income needs.

Need help turning your savings into income? You can use this free tool from our partner SmartAsset that can match you to a fiduciary advisor.

Know what to expect from Social Security

If you start claiming Social Security at age 62, you'll get a smaller check than if you wait until full retirement age (67) or even 70.

Here's a look at average monthly benefits depending on when it's claimed:

So if you retired now and started receiving the average benefit at age 62:

• You'd get about $1,383 per month in benefits
• Combine that with the $3,000 per month from your 4% withdrawal, and your total income would be around $4,383 per month

That's a livable income in many places, especially if your home is paid off and your expenses are low.

A more definite way to estimate Social Security income is via SSA.gov. Your benefit is based on other factors like your earnings history, how long you worked, and whether you're married.

Don't overlook healthcare costs before Medicare

Medicare doesn't kick in until age 65. So if you retire at 62, you'll need to cover your own health insurance for at least three years.

Options include:

• COBRA from a former employer (can be pricey)
• Marketplace plans via Healthcare.gov
• Joining a spouse's health plan

SmartAsset estimates that the average premium for a 62-year-old buying a Silver plan on the marketplace is around $1,072 a month before subsidies.

That's a big chunk of your $4,383 monthly income! And it doesn't include out-of-pocket costs if you're visiting the doc a lot.

Premiums vary widely depending on the state you live in and the available tax credits. It's smart to price out coverage yourself and see what's available in your state.

Run the numbers: Can you live on $52K a year?

Let's say your combined income is roughly $52,600 per year (that's $36,000 from investments + $16,600 from Social Security).

Now ask yourself:

• Can I comfortably cover housing, food, transportation, healthcare, and fun?
• Do I have a cushion for emergencies?
• Will this support me for the next 25-30 years?

If you answered yes -- and you've got a solid investment allocation and low fixed costs -- you might be ready to retire today.

If not, consider waiting a couple years. The numbers should only get better -- your savings should grow, you'll get higher Social Security checks, and may have cheaper healthcare before Medicare kicks in.

Need help with your retirement plan? Use this no-cost quiz from our partner SmartAsset to get matched with up to three fiduciary advisors so you can get professional advice.