70 and Still Working Full-Time

Summary

Jill on Money with Jill Schlesinger

Episode: 70 and Still Working Full-Time

Date: October 1, 2025
Host: Jill Schlesinger, CFP®

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Episode Overview

In this episode, Jill Schlesinger takes a listener call from Mimi in Southern California, a 70-year-old still working full-time in the nonprofit sector. They discuss Mimi’s finances, her reasons for continuing to work, and strategize about how to best use her Social Security income and prepare for retirement. Jill provides actionable advice tailored to Mimi’s circumstances and draws out broader lessons for listeners in similar situations.

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Key Discussion Points and Insights

Mimi’s Background and Financial Situation

• Dedication to Service:
  Mimi has worked her entire career in roles focused on serving families in need, only focusing on her own retirement later in life.

  • “Most of my focus has been throughout my career on serving other people. And I really did not focus on myself in my retirement until much, much later.” (Mimi, 03:50)

• Current Employment:
  Still working full-time at age 70, earning $105,000/year.

  • “I find myself at age 70, still working full time. I was not anticipating this years ago that I would still be working, but I am, I'm, you know, fortunate that I have good work...” (Mimi, 03:50)

• Retirement Savings Status (All numbers approximate):

  • 401(k): $607,000 (pre-tax, max contributions, including catch-up)
  • Roth IRA: $264,000
  • SEP IRA: $23,000 (from prior side income)
  • CD: $46,000
  • Cash: $66,000
  • “You’re saving money, you’ve got retirement assets... That seems to be a good place to be.” (Jill, 07:11)

• Living Situation:

  • Renting in California at $1,500/month, well below market rate.
  • Mimi is single, no dependents, and has no immediate family to move in with if her rental situation changes.

• Income Streams (in addition to salary):

  • Social Security: $4,127/month (just began claiming)
  • Small pension: $278/month

Expense Analysis and Future Projections

• Monthly Expenses:

  • Current spending: $5,000–$5,500/month

  • Jill projects $6,000/month in retirement to account for increased health insurance costs after leaving her employer (transition to Medicare will be more expensive).

  • “So when you leave this and go on Medicare, it's going to be more expensive for you?” (Jill, 09:06)

  • “Yeah. Oh, yeah.” (Mimi, 09:10)

• Rent Risk:

  • Mimi’s rent is stable but contingent on her landlord’s situation; losing it could mean a jump to $5,000/month in rent.
  • “That would be a big change for you... [if the rent changed].” (Jill, 10:43)
  • “That's kind of the variable... as long as my landlord doesn't die...” (Mimi, 10:05)

• Working Horizon:

  • Plans to work full-time until age 75.
  • “At the moment I’m thinking I’ll work till I’m 75.” (Mimi, 09:32)
  • “Wow. So you are really going to be able to sock away some money over that period of time, right?” (Jill, 09:43)

Investment Strategy & Advice

• Social Security Income – What To Do With It:

  • Mimi saves her Social Security payments, as her salary covers all expenses.

  • Jill recommends leveraging those funds for additional investment.

  • “The new money coming in from Social Security... we could be putting it to work.” (Jill, 11:50)

  • “Correct.” (Mimi, 11:51)

• Recommended Next Steps:

  • Open a taxable brokerage account with Vanguard (where her Roth is held).
  • Invest the $4,100/month Social Security income in a balanced portfolio (e.g., 50% stocks/50% bonds) to grow assets and provide flexibility in the future.
    • “Because you've got this nice cash, you could probably establish a brokerage account at Vanguard and then you can start using that $4,100 a month and contribute that...I would say maybe 50-50 [stocks/bonds].” (Jill, 12:17–12:51)

• Required Minimum Distributions (RMDs) Planning:

  • While working, Mimi can avoid RMDs from her current employer's 401(k).

  • Once she retires, she will need to take RMDs, but these can be managed alongside Social Security and her small pension.

  • “When you stop working, then you will have to take [RMDs]...there’s no reason to worry about it. You’re going to be fine.” (Jill, 13:03–13:31)

• Rent Contingency:

  • Jill emphasizes the importance of building up non-retirement funds (brokerage account) because the biggest financial vulnerability is the possibility of losing low rent.

  • “The risk is the rent. And until we know anything further, that's another reason to capture this $4,100 a month...because that's going to help bolster your access to more money.” (Jill, 14:33)

Broad Takeaways for Listeners

• Don’t Abandon Good Rental Situations:

  • “If you got a good deal, don’t be so quick to abandon it just to buy.” (Jill, 16:27)

• Every Situation is Unique:

  • Jill makes clear at the top: “Everyone’s situation is a little bit different... If you would like advice that is more attuned to what’s going on in your life, get in touch with us.” (Jill, 01:06)

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Notable Quotes & Memorable Moments

• On Service and Purpose:
  “I oversee programs that are really making a difference in the lives of families. So most of my focus has been...on serving other people.” (Mimi, 03:50)

• On Surprising Financial Health:
  “Maybe things will have worked out well because you’re a do gooder...your good intentions, your good work and all of that, even though you are not hyper focused on money, that maybe the universe will have paid you back.” (Jill, 04:35)

• On Staying the Course & Worrying Less:
  “I wouldn't stress so much about the rent right now. What else are you going to...you could worry about it, or you could just move ahead, make sure you're taking advantage of the free cash that you have...use it and help yourself get to a slightly more stable position, but that's it. You're doing what you should be doing.” (Jill, 15:22–15:48)

• On Investing Risk:
  “I mean, it’s a little bit scary, but I, you know, I also want to, you know, do what is going to provide me with the best options.” (Mimi, 12:51)

• On Nontraditional Housing Paths:
  “It’s not just that you have to buy a house to be in a house... Sometimes these great, like, maybe it’s a rent stabilized situation. If you got a good deal, don’t be so quick to abandon it just to buy.” (Jill, 16:17–16:27)

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Timestamps for Key Segments

• 03:46 – Mimi shares her background and current work situation
• 04:58–07:30 – Mimi’s retirement accounts, living situation, and nonretirement assets
• 07:37–08:33 – Income, Social Security, and pension details
• 08:46–09:20 – Monthly spending and health insurance coverage
• 09:32 – Mimi’s intended retirement horizon
• 10:05–11:03 – Risks of rent instability, no alternative housing options
• 12:15–13:03 – Guidance on investing surplus Social Security income in a brokerage account
• 13:03–14:33 – RMD planning and rent risk management
• 15:22–15:48 – Key advice: focus on building stability, don’t worry about what you can’t control

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Summary & Actionable Recommendations

• Mimi’s steady work and frugal housing allow her to save aggressively in her 70s.
• Her main risk is housing; her low rent is a linchpin of her financial security.
• Jill recommends using excess Social Security income to grow a new brokerage account, creating flexibility and protection in case housing costs rise in the future.
• Mimi’s conservative spending and continued work allow her to approach retirement with rising confidence, despite her late start.
• The episode highlights the importance of personalized advice, the value of great rental deals, and prudent preparation for future uncertainties.

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For more financial insights or to ask your own questions, visit jillonmoney.com.

Transcript

[A]

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[B]

Hi Jill. Mark. I'm great, thank you.

[A]

Tell us what's happening.

[B]

Okay, so I find myself at age 7 70, still working full time. I was not anticipating this years ago that I would still be working, but I am, I'm, you know, fortunate that I have good work, good experiences with my work. I'm serving families that have been struggling for different reasons. I oversee programs that are really making a difference in the lives of families. So most of my focus has been throughout my career on serving other people. And I really did not focus on myself in my retirement until much, much later.

[A]

Okay, maybe you'll, maybe things will have worked out well because you're a do gooder. So that's what I'm hoping for. I'm hoping that your good intentions, your good work and all of that, even though you are not hyper focused on money, that maybe the universe will have paid you back. So tell us a little bit about what is going on in terms of, you know, where you stand at age 70.

[B]

I am contributing as far as financially, I am contributing fully into my work based 401k. So the maximum I'm contributing as well as I have a Roth that I'm contributing fully to and I've been doing the Roth fully for several years now. Do you want me to give you kind of the dollar amounts of things?

[A]

Yeah, let's, let's see. So you're working full time, you're contributing the max to the 401k.

[B]

What's the balance in that account, approximately 607,000.

[A]

Great. And that's all before taxes, right? That's a pre tax contribution you're making or is that also a Roth 401K?

[B]

It's. No, it's not a Roth.

[A]

Okay, and so. Okay, and then you said the max. You've been maxing out the Roth also. So how much is in Roth?

[B]

Okay, so I have, have a Roth and then I have a SEP IRA. So the Roth is $264,000.

[A]

Okay, great. And a SEP IRA because you've got some income. You have like, maybe you have like side hustle money or. How did you get that? Years.

[B]

Yes. From years ago, not recently. Yeah. And. And that has about 23,000.

[A]

Okay, great. I neglected to ask you, are you married, single? Partnered?

[B]

I am single.

[A]

Okay. And do you own your own home in the very expensive state of California?

[B]

No, I don't. So I am renting.

[A]

How much is your rent?

[B]

I'm extremely fortunate where I'm living and with my landlord. So my rent is only 1,500.

[A]

Oh, that's great. So that's what gives you the ability. I was thinking like, if you're in service, then it means that you're not making a lot of money and you've got a bunch of money in these accounts. Okay, so rent is reasonable, you're saving money. You've got retirement assets. What about non retirement assets, like cash in the bank or investments? What else is out there?

[B]

I currently have a CD that has about 46,000. And then in terms of cash kind of in different types of accounts, I have about $66,000.

[A]

That's great. And so those are like the basic assets that you have saved, right?

[B]

Yes.

[A]

Okay, now you're single, you're working full time, you're 70. How much do you earn right now?

[B]

$105,000 a year.

[A]

And you, I presume, will be claiming Social Security because you're 70, right?

[B]

Correct. I just, I just started this year.

[A]

And does that 105 that you earned, is that including Social Security or do you have additional money from Social Security?

[B]

It's additional.

[A]

How much is that?

[B]

So per month it's 4127.

[A]

Wow. So you're living large now. That's a lot of money, right?

[B]

Yeah, I mean, it makes a difference. But I'm being really. Yeah, I'm being very mindful. I'm not, I don't overspend. But I want to, you know, think about is there something else I should be doing with the additional money? Right now I just have it in savings. I also have a very, very small pension, which is another $278 a month.

[A]

Let's get down to, like, probably the most important question in all of this before you start thinking about, like, what's going to happen in the future? How much do you spend? You know, you've got cheap rent, but what do you think your monthly spend is?

[B]

I would say it's between 5,000 and 5,500.

[A]

Do you get your medical coverage, your health insurance through work?

[B]

I do, I do. And it's really inexpensive. So, like, Medicare would be so much more money for me.

[A]

So when you leave this and go on Medicare, it's going to be more expensive for you?

[B]

Yeah. Oh, yeah.

[A]

Okay, so then let's say that monthly. I'm just going to. Just for the heck of it, just I'm going to leave your monthly expense. I'm going to say $6,000.

[B]

Sure.

[A]

Okay. Right. Because that will be. What is the future? What do you think is going to be the time horizon for you continuing to work full time? Sounds like you really like it. So do you want to keep doing it?

[B]

How do you feel at the moment? I mean, I keep kind of changing, but at the moment I'm thinking I'll work till I'm 75.

[A]

Wow. So you are really going to be able to sock away some money over that period of time, right?

[B]

That would be my intention, yes.

[A]

Okay. And do you foresee, just so we have it as sort of the game plan, do you foresee any change in your rent? Because that would obviously be a big deal for you, right?

[B]

A big deal, yeah. Yeah. That's kind of the. The variable that's, you know, so, I mean, as long as my landlord doesn't die, because, you know, he's. But he's wonderful and he's. But he's older than me. No, I mean, it's. It's really great. So, you know, that won't change unless he dies.

[A]

Right.

[B]

It could go on for, you know, several more years that I would have this low rent if I didn't have this low rent. You know, it would probably, you know, rent in my area would probably be 5,000amonth.

[A]

Right. I would figure at the very least. And that would be a big change for you, at least. Yeah. And there would be no other. In other words, you don't have any family members where you could, like, shack up with somebody and hang out or anything like there any kids or siblings that would be, you know, where you could sort of Defray costs or not?

[B]

No.

[A]

Okay. And you want to stay obviously where you are because you love it.

[B]

Yeah.

[A]

Beautiful there. Okay.

[B]

It is.

[A]

So if you keep working for five more years and you said you're maxing out your 401k, meaning you're not just putting away the 23 something, you're doing the catch up contribution as well.

[B]

Correct.

[A]

Okay, so with that and then so essentially about like 37, $38,000 between your Roth and your 401k. And are you saying that the, the new money coming in from Social Security is that, is that money, like, basically you don't need it at all? Like all the other money pays for what you can, what you need. And that four grand a month from Social Security could be. We could be putting it to work.

[B]

Correct.

[A]

Okay, great.

[B]

Yeah.

[A]

All right. You've got plenty of cash. This is great. This is wonderful. It's all good news. I presume what you kind of want to get a sense of is like in five years, number one, what should I be doing with this $4,000 a month? And I think you've got plenty of cash. I mean, you've got more than 100 grand in cash. That seems to be a good place to be. Where do you hold your Roth account?

[B]

Um, it's in a Vanguard.

[A]

Okay. So I think that what the next step for you would be is that because you've got this nice cash, you could probably establish a brokerage account at Vanguard and then you can start using that $4,100 a month and contribute that to a, I would say a balanced, not even like a high growth, like a little bit like some risk, some, you know, for the next five years. I would say maybe 50. 50. How do you feel about risk? Is that something that's, is it scary to you? Like, how do you feel about it?

[B]

I mean, it's a little bit scary, but I, you know, I also want to, you know, do what is going to provide me with the best options.

[A]

You have saved a bunch of money. I mean, even just the, the SEP and the 401k which haven't been taxed yet. Right. Even if I assume that 630 grand hasn't been taxed yet, so maybe I would say that in five years that will grow. I think that if you put away this money in the brokerage account and build that up when you're 75, you are going to have to start taking required minimum distributions. Now you're in this interesting place, which is while you're still working, you don't have to take those distributions. As soon as you stop working, then you will have to take them. So you're going to have to take money out, right? And so that's going to be something that will just force money out. But it's fine. It's fine because when you're, you know, from 75 to, you know, I don't know, you're not going to be earning as much money. But you would just take your minimum required distributions out, take it out a little bit at a time. There's no reason to worry about it. And you're going to be fine. Because even in five years, let's say the minimum required distribution is like 15 or $18,000 a year or something like that, okay? That's going to be perfect for you because you'll have your Social Security, the old pension, and then you'll be able to take that money out of your 401, and that's what you will live on. And then that will be great. As you know, the risk is the rent. And until we know anything further, I think it's. That's another reason why we'd like you to capture this $4,100 a month of Social Security and start that brokerage account, because that's going to help bolster your access to more money. And is. Is this a. It's a house. Is that what it is? It's. And. And you live in part of it, or is it a two family? What. What's the situation? It's a two.

[B]

A two family.

[A]

Do you have a lease or not?

[B]

From years ago.

[A]

Let's keep. Let's just make sure he eats well. No smoking. I'm just kidding.

[B]

No, I do, I do. I do take care of him in.

[A]

Different ways, I'm sure. I mean, I think that that's. I think that this arrangement is. Obviously sounds like it's working for both of you. So hopefully this works, continues to work. I think you're doing what you should be doing. It's great. If you're happy working, keep working. You know, a lot of people don't even realize that, like, you're working. Guess what? You don't have to start taking money out of those retirement accounts yet. You know, I wouldn't stress so much about the rent right now. What else are you going to. What are you. What could you, you know, you could worry about it, or you could just move ahead, make sure you're taking advantage of the free cash that you have, that cash flow from the Social Security and use it and help yourself get to a slightly more stable position, but that's it. You're doing what you should be doing. Open up that Vanguard account. Capture the moolah and keep your head down and keep that guy alive. Okay?

[B]

Yes, yes. Thank you so much.

[A]

I really appreciate. If you need anything else along the way or if the conditions change, let us know. Now, if you are listening to this and saying, $1500 a month, how can I get one of those deals? You know, there are a lot of people out there who, who are living in situations that are pretty amazing. And sometimes it's with a family member, sometimes it's with a friend. So it's not just that, like you have to buy a house to be in a house. Imagine if we had, you know, Mimi was like, oh, it's costing me $5,000 a month right now. She wouldn't be in as good financial condition. So sometimes these great, like, maybe it's a rent stabilized situation. If you got a good deal, don't be so quick to abandon it just to buy. Okay? So if you've got a question about what's going on in your own financial life, maybe you're worried about renting versus buying, Maybe you're thinking about listing your property and then maybe you should be renting next, who knows? Get in touch with us. Go to jillonmoney.com, click the contact us button, write us a note, and of course, let us know if you would like to come on the air live with us by checking the box. You can also check out our subscription service. It's called Jill on Money Live. That's where you have access to quarterly live webinars, the back catalog of those webinars, bonus audio and video content. It's all for 45 bucks. For the next 12 months, Jill on Money Live, you can subscribe to us on the Odyssey app or wherever you find your favorite podcasts. Please leave us a rating and review wherever you listen and of course, lift someone up. Change your work, change your wealth, change your life. Thanks for listening. We'll talk to you tomorrow. Hey, gang, here's the thing about wine. Some of the best bottles are not sitting on a store shelf. They're being crafted at small, independent wineries. But those wines can be so hard to find sometimes. I wish I had a personal sommelier to guide me to find the best wines I normally wouldn't be able to access. Where's that handcrafted pinot that I've been craving? Well, Sommsation's expert team seeks out incredible wines from top independent producers. These are bottles that you will not find in stores and on shelves. They aren't mass produced wines. They're handcrafted with care, using pure ingredients and meticulous winemaking. Whether you want a single bottle, a guided tasting experience, or an entire wine club membership, Psalmsation makes it easy to elevate your wine experience. Shop their [e-mail] jillonmoney that's psmsation.com jillonmoney.

[C]

Hi, I'm Nancy Cartwright. You may know me better. As the voice of Bart Simpson on Simpsons Declassified, we're diving into the mysteries that keep the Simpsons forever young. Have you ever wondered how the Simpsons regularly predicts future events? Who better to ask than the show's creators, performers and writers? The celebrity guests? Be sure to follow and listen to Simpsons Declassified wherever you get your podcasts.