Retiring at 60? 3 Pitfalls to Be Mindful Of.

Early retirement can mean different things to different people. For some, it means ending their careers at 45. For others, it means stopping work at 52.

It can be difficult to retire before age 59 and 1/2 because that's when you're first allowed to tap an IRA or 401(k) plan penalty-free. So if you're planning on an early retirement, you may decide to call it quits at 60.

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But while 60 certainly isn't an unreasonably young age to retire, there are some pitfalls it might lead to. Here are three to keep on your radar.

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1. Your money might need to last longer

Even if you're kicking off retirement with a lot of savings, it can be hard to stretch that money over many decades. One issue you might run into if you retire at 60 is that your savings might need to last a few extra years. So you may need to be extra-cautious about taking withdrawals from your nest egg.

Financial experts have long recommended the 4% rule in the context of retirement plan withdrawals. But if you anticipate living a pretty long life, then 4% may be too aggressive a withdrawal rate. You may want to sit with down with a financial advisor and work together to figure out how much of your savings you can afford to tap annually.

2. You won't be eligible for Social Security right away

Many people count on Social Security for income once they retire. But if you're ending your career at age 60, you'll have to wait at least two years until Social Security becomes available to you. And even then, you won't be eligible for your complete monthly benefit until age 67.

Now if you have plenty of savings, you may be able to get by without Social Security for a period of time. But again, that ties into the risk of depleting your nest egg prematurely. So you'll need to be very careful with how much money you withdraw early on in retirement, especially if you have reason to believe you'll live well into your 90s.

3. You won't be old enough for Medicare

Going without health insurance is a poor choice at any time. And it can be especially unwise as you get older.

But if you retire at 60, it means you won't be eligible for Medicare coverage for another five years. And while you may have the option to hop onto a spouse's employer health plan, if that's not the case, buying your own coverage could prove more costly than expected.

And once again, it brings up the issue of running out of savings. If you're spending extra your first five years of retirement to buy health insurance, it could strain your nest egg in the long run. This is something you'll have to plan for carefully.

If you've worked hard and saved well to be able to retire at 60, then by all means, you deserve to do so. The point here isn't to discourage you from ending your career when you want to. Rather, it's to make you aware of the challenges that might arise if you retire at that age -- and to encourage you to plan for them carefully so you don't end up running out of money at any point in your lifetime.

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