Retiring at any age requires thoughtful, tailored planning. But when faced with the choice to take an early retirement or continue working, the right answer depends on several personal factors.

Join Heath Grossman, CFP® in this week’s Money Wisdom Question Series as he breaks down the financial and lifestyle implications of retiring early at 62 versus waiting until 65.

Retiring at Age 65

Depending on your financial situation, you may need more time to maximize your retirement contributions or income before retiring. In this case, waiting a few more years—until you’re 65 or even older—may make the most sense for you.

Additionally, you may rely on employer-sponsored health insurance. If you can’t afford optimal healthcare coverage before Medicare begins at 65, it may make sense to keep working.

And while your finances are important, they aren’t the only factor in deciding when to retire. You may simply find fulfillment in your career and want to continue working. Delaying retirement can also give you more time to plan and shape your future lifestyle.

Retiring Early at Age 62

If you have enough saved to support a longer retirement, taking an early retirement may be in your best interest. With that choice, however, comes the need for a health insurance plan.

If you can afford coverage outside Medicare, there are several options available. You could keep your employer’s coverage with COBRA, join your spouse’s plan, or access a retiree health policy.

Another reason to retire at 62 may be to enjoy more free time during your most active years. That could be time volunteering, exploring a new hobby, traveling, or being with family.

Social Security Considerations

The timing of your Social Security benefits can be another key factor in your decision. You can file for benefits as early as age 62, at full retirement age (66-67), or as late as age 70. Each point in this timeframe comes with a different benefit amount.

The right time to file for Social Security is a highly personal decision. It needs to be part of an overall retirement plan tailored to you and your goals. That same plan can also help determine your ideal retirement date by evaluating your retirement savings, income, expenses, and lifestyle.