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Retiring before you need to
Cost: $237,000 to $309,000

Early retirement may be fun to fantasize about, but it can come at a huge price. For starters, you'll be giving up income you would have earned during what might be the best-paid years of your career. What's more, Medicare won't cover you until age 65, so you might have to buy individual health insurance at an age when costs are apt to be at their highest. And each year you postpone is one less year your savings will need to support you.

We assumed our hypothetical worker had the median U.S. household income for his age group of $54,592. He quit working in 2008 at age 62, as soon as he could start collecting Social Security. That cost him four years of income (including 4 percent annual raises) that he would have earned until he reached his full retirement age of 66, or $221,665.

Next, we asked the Social Security Administration how much his benefits would be reduced if he had retired at 62 vs. 66. The answer was $403 a month for life. If he lives to age 78, that will cost him $8,899; to 85, $42,751. True, the equation would change somewhat if he took early benefits and invested them, but few retirees have that luxury.

Finally, we solicited price quotes for health insurance from Blue Cross/Blue Shield of Illinois. Premiums ranged from $6,501to $44,958 over three years, depending on coverage limits and deductibles.

What you can do. If you're in good health and have a choice about when to retire, try to wait until full retirement age.