Retiring Before Age 65 in 2027? 2 Key Things You Need to Know

Though some people might choose to wait until age 65 to bring their careers to an end, there's absolutely no rule stating you have to do the same. And if you've saved well and are ready for that next stage of life, there's nothing wrong with retiring before age 65.

If that's what you're gearing up for in 2027, it's important to go in prepared. Here are two key things to know.

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1. You won't be eligible for Medicare yet

Many people's health insurance is tied to their jobs. If you retire at 65, you'll generally be eligible to enroll in Medicare. If you'll be younger when you retire, you'll need a plan to secure health coverage.

Now you may be thinking you can get by without insurance for a few months if that's all it takes to bridge the gap until Medicare kicks in. But remember, all it takes is a single medical emergency without insurance to upend your finances and destroy your savings.

If you have good coverage through your current job, you might consider continuing it through COBRA if you're close to 65. With COBRA, you pay your premiums for your workplace plan without an employer subsidy, but you also get to retain the coverage you're familiar with.

2. You won't be eligible for your Social Security benefits in full

If you're at least 62 when you retire, you'll be able to sign up for Social Security . But you won't be eligible to collect your monthly benefits in full.

That won't happen until age 67, which is your Social Security full retirement age . For each month you file before full retirement age, your benefits are permanently reduced.

Smaller Social Security checks may not be a problem for you if you have a lot of savings and can afford to receive less money each month. But if you don't want to reduce your benefits, you'll need to make sure your savings can sustain you once you leave your job.

Of course, there's another option. You could retire from your current job but work part-time in a role or field you enjoy. That could give you more free time without the same strain on your retirement account.

A 2027 retirement is an exciting thing to look forward to. But if you won't be 65 at the time you end your career, there are special considerations to think about. Make sure you've explored health insurance options and understand when to claim Social Security so your retirement finances aren't thrown for a loop.