I Don’t Want to Work Until I’m 70!

Summary

Episode Summary: "I Don’t Want to Work Until I’m 70!"

Episode Information

• Podcast Title: Jill on Money with Jill Schlesinger
• Host: Jill Schlesinger, CFP®
• Episode Title: I Don’t Want to Work Until I’m 70!
• Release Date: July 3, 2025

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Episode Overview

In this episode of "Jill on Money," host Jill Schlesinger engages in a comprehensive discussion with a listener named Lisa from New Jersey. The conversation centers around Lisa's aspirations to retire early at the age of 65, her financial preparations for relocating to California, and the strategic planning required to achieve financial independence without overextending her resources.

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Listener Call-In: Lisa’s Retirement Ambitions

Introduction to Lisa’s Situation

Lisa, a 63-year-old employee at a private school in New Jersey, shares her desire to retire at 65 after 21 fulfilling years in her current role. Her primary motivation is to move to Southern California to be closer to her children and grandchildren, enhancing her quality of life in her later years.

Financial Snapshot

• Income: $80,000 annually
• Retirement Accounts:
  • 403B: $551,000 (Traditional)
  • High-Yield Savings: $14,000
• Current Rent: $1,755 per month in New Jersey; anticipated rent in California ranges from $2,800 to $2,900 per month.
• Expenses: Approximately $2,000 monthly, excluding rent.

Primary Concerns

• Transitioning to higher living costs in California.
• Ensuring sufficient funds to support increased expenses without depleting retirement savings prematurely.
• Health considerations, given her proactive approach but concerns over her parents' early passing.

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Financial Analysis and Strategic Advice

Evaluating Retirement Readiness

Jill and her colleague Mark assess Lisa's financial readiness to retire at 65. They consider her steady income, substantial contributions to her 403B with a generous 30% employer match, and minimal debt, which positions her favorably for early retirement.

Key Recommendations

1. Continue 403B Contributions:

   • Jill's Insight (07:04): "Keep putting the 8,000 into your 403B to receive the 30% match."
   • Emphasizes the importance of maximizing retirement contributions to benefit from employer matching, which significantly enhances her retirement savings.

2. Maintain a High-Yield Savings Buffer:

   • Jill's Suggestion (12:40): "Squirrel extra money into your High Yield savings account."
   • Advises building a liquid financial cushion outside retirement accounts to manage increased living expenses and unforeseen costs.

3. Adjust Retirement Timeline:

   • Jill's Proposal (13:00): "Retire at 67 instead of 65 to ensure financial stability."
   • Suggests a slight extension of working years to bolster retirement funds and delay tapping into retirement accounts, thereby optimizing Social Security benefits.

4. Strategic Social Security Claiming:

   • Jill's Strategy (16:17): "Delay claiming Social Security until 70 to maximize monthly benefits."
   • Recommends postponing Social Security to enhance monthly payouts, which can provide greater financial security in later years.

5. Flexibility in Living Arrangements:

   • Jill's Advice (06:28): "Consider remote work options to supplement income without fully retiring."
   • Encourages exploring part-time or remote work opportunities to maintain income streams while enjoying retirement benefits.

6. Health and Estate Planning:

   • Jill's Final Note (16:43): "Ensure your estate documents are in place and continue proactive health management."
   • Stresses the importance of comprehensive estate planning and maintaining health to support an active retirement lifestyle.

Potential Challenges Addressed

• Higher Cost of Living: Acknowledges the significant increase in rent and living expenses in California, advising careful budgeting and financial adjustments.
• Longevity and Health Risks: Discusses the uncertainties related to lifespan and health, recommending a cautious approach to ensure funds last through retirement.

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Notable Quotes

• Jill Schlesinger on Social Media Fatigue (03:23):

  "I don't go onto all these social media accounts. It's so silly. It's so cluttered."

• Lisa on Her Proactive Health Management (09:38):

  "I've been very proactive for the last 15 years, going for checkups, going for screenings. I'm very healthy."

• Jill’s Encouragement for Financial Roadmaps (17:42):

  "It doesn't matter whether you're 63, 43, or 23, having some sort of roadmap that is able to adapt... having a game plan is a very good way to feel like you have independence, control."

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Concluding Insights and Takeaways

The episode underscores the delicate balance between the desire for early retirement and the practical financial considerations that support such aspirations. Jill Schlesinger and Mark provide Lisa with actionable advice, emphasizing the importance of continued retirement savings, strategic Social Security planning, and maintaining flexibility in her retirement timeline. They also highlight the necessity of adapting financial plans to accommodate life changes and unexpected economic shifts.

For listeners contemplating early retirement or significant life transitions, the discussion offers valuable insights into effective financial planning, the benefits of employer-matched retirement contributions, and the importance of a robust, adaptable financial roadmap to ensure long-term financial independence and security.

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Additional Resources

Listeners are encouraged to visit jillonmoney.com for more resources, including books and videos, and to reach out via the "Contact Us" button for personalized financial guidance or to participate in future shows.

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This summary captures the key discussions and advice from the episode "I Don’t Want to Work Until I’m 70!" and is intended to provide a comprehensive overview for those who have not listened to the full podcast.

Transcript

[Carvana Customer]

Buying a car in Carvana was so easy, I was able to finance it through them. I just.

[Jill Schlesinger]

Whoa, wait, you mean finance?

[Carvana Customer]

Yeah, finance. Got pre qualified for a Carvana auto loan, entered my terms and shot from thousands of great car options all within my budget.

[Lisa]

That's cool.

[Carvana Customer]

But financing through Carvana was so easy. Financed, done. And I get to pick up my car from their Carvana vending machine tomorrow. Financed, right?

[Lisa]

That's what they said.

[Carvana Customer]

You can spend time trying to pronounce financing or you can actually finance and buy your car. Today on Carvana financing subject to credit approval. Additional terms and conditions may apply.

[Ryan Reynolds]

Hey, it's Ryan Reynolds here for Mint Mobile. Now I was looking for fun ways to tell you that Mint's offer of unlimited Premium Wireless for $15 a month is back. So I thought it would be fun if we made $15 bills. But it turns out that's very illegal. So there goes my big idea for the commercial. Give it a [e-mail] Switch upfront payment.

[Carvana Customer]

Of $45 for a three month plan equivalent to $15 per month required new customer offer for first three months only. Speed slow after 35 gigabytes of networks busy taxes and fees extra.

[Jill Schlesinger]

See mintmobile.com welcome to the Jill on Money Show. It's Thursday, July 3rd and I know most of you are like trying to take the day off. Let's be clear. This is like screams long weekend. And by the way, financial markets close at one o' clock today. So the New York Stock Exchange sent a memo out, they're closing early and that's kind of fun. But also at 8:30 Eastern time we have a jobs report. So I have to stick around for a bunch of the the Thursday drama around that. Even though I don't know what it's going to show, but I don't think it's going to be totally meaningful. We'll see if the labor market continues to slow down. If something meaningful happens, we'll talk about that. I doubt it's going to be anything too meaningful in the meantime as you approach this weekend. We've been talking about how the first half of the year is over and maybe you're considering some of the things that have gone on in your financial life in the first six months of the year or maybe you're looking forward to the end of the year, whatever it is, if there is something that is going on in your life, maybe you are a mid career person and you really want to change your course. Maybe you're starting out and you just feel like you need some guidance, help with priorities. Whatever is going on for you, don't carry whatever it is on your own. Come to us, talk to us. Go to jillonmoney.com click click the contact us button, write us a note. And if you would like to join us on the air live, you check the box. Mark does everything else now, if you'd like, you can check out all the resources that live on our website. The books, videos. You can send a note about how you like or did not like my hair, which I'll ignore. Mark will pay attention to Mark. By the way, I had to go on LinkedIn for something and now I know why. I don't go onto all these social media accounts. It's so silly. It's so cluttered. Even LinkedIn, which used to be so much better, it's like filled with bots and nonsense. How do you manage it?

[Mark]

Yeah, LinkedIn is kind of jumped the shark. It's no longer what it. It's definitely not what it used to be, that's for sure. It's just now it's just a regular, another social media site.

[Jill Schlesinger]

It's just terrible. Anyway, but of course, follow us on all those things. Are we ready to get off Twitter or X yet? Or is there something. Didn't you say we needed to get. Get something from Twitter that like that. They do.

[Mark]

Yeah. That's no longer really the case. So, yeah, anytime you want to get off. Because honestly, I don't even go on there anymore. Anytime you want to get off.

[Jill Schlesinger]

But should we not get off? Because someone will take my. I don't know what's more dangerous, leaving it up there and having some sort of fraud potential. Because, you know, that happens all the time. People like send me thing. Oh, I got this thing from you on Instagram. I'm like, no, it's not me. I don't solicit anybody. So everybody knows that. Don't click on anything. But I don't know, figure out whether it's the up. I don't know what the upside is of leaving versus just leaving a stale account. I'm not sure. Meanwhile, let me look into listener Lisa, who joins us from New Jersey. Hello, Lisa. Are you a social media kind of person, Lisa?

[Lisa]

I dabble a little bit. I try not to let it consume too much of my day.

[Jill Schlesinger]

What would happen, like if you, when you say that, would it be like I'm scrolling through TikTok obsessively or is there something else that you. Or like, oh, I really want to find out what my high school boyfriend's up to.

[Lisa]

I used to do that with the high school boyfriend, but nowadays I just kind of follow some groups.

[Jill Schlesinger]

Oh.

[Lisa]

And I skim through all the other minutiae.

[Jill Schlesinger]

Okay, but it does. It's like a time suck, isn't it?

[Lisa]

Oh, gosh, yes.

[Jill Schlesinger]

All right, well, listen, it is the day before Independence Day, so how can we help you on your journey towards financial independence?

[Lisa]

Oh, yes. Well, you know, I started listening to your show a couple of months ago, and I gleamed a lot of information out of it, and I was hesitant to write in because I don't have as many assets as the majority of your listeners do.

[Jill Schlesinger]

Wait a minute, wait a minute. That's not exactly true. I'm just going to correct you for one minute. Many of the people who come on the air do, but I think there's a lot of people listening who want representation. So we are happy to hear from everybody. And so, Lisa, I. I'm glad that you did write. And how did you find us? A couple of months ago, by the.

[Lisa]

Way, I was watching listening to another podcast in the morning while I was getting ready for work, and somehow it popped up. Your show popped up, and as of yesterday, I started following your other podcasts, Money Watch.

[Jill Schlesinger]

Fantastic. Oh, my God, I love it. Okay, so let's find out why. What's going on? Whether you have $0 or gazillion dollars, I still want to hear from everybody. So tell us what's going on for you, Lisa.

[Lisa]

Okay. I'm 63. I have been with the same job, which I truly love, for 21 years. I am very interested in retiring at 65. That's been my goal for the last 10 years. My children and grandchildren live in California. And while I still have a little pep in my step and some energy, I would like to move out to California and watch those kids grow up and do things with them.

[Jill Schlesinger]

I love this idea. Now, are they in Northern or Southern California?

[Lisa]

They're in Southern California.

[Jill Schlesinger]

So nice climate. You're already used to paying high taxes because you live in New Jersey, so there's not a big problem there. You'll just be used to it. It's like being at base camp one, and you'll just be going to base camp two. It's not a problem. So, Lisa, are you in a type of job that would earn you a pension or not?

[Lisa]

No, I do work for a private school. We have no pension. We have a 403B, which they generously match 30% of whatever I put in so that. That you Know that's a pretty much unheard of from what I understand.

[Jill Schlesinger]

Absolutely. So how much money is in there?

[Lisa]

As of yesterday, it was about 551,000.

[Jill Schlesinger]

And it's all in the traditional, not in Roth.

[Lisa]

Right, Traditional.

[Jill Schlesinger]

Okay, got it. That's great. 30%, man. Okay. How much do you earn?

[Lisa]

I earn $80,000 a year.

[Jill Schlesinger]

Besides the 403, do you have other savings, other investments, anything else going on?

[Lisa]

I have $14,000 in a high yield savings account and that's it.

[Jill Schlesinger]

Okay. How about your house? Do you rent or do you own?

[Lisa]

I rent.

[Jill Schlesinger]

How much is the rent?

[Lisa]

My rent is 1755amonth.

[Jill Schlesinger]

What? It's so cheap for New Jersey.

[Lisa]

It is, yes. I was very lucky to find it five or six years ago.

[Jill Schlesinger]

Hmm. I'll say 1755amonth. And if you were to move out to California, would you move in with one of, like with the child grandchildren?

[Lisa]

No, no, actually, I was out there in February and kind of visited a couple of different complexes to see where I would want to land. And the rents there are much higher, probably around 28 to 2900amonth. So that's a big jump.

[Jill Schlesinger]

Sure, I get that. Would you try to do some work if you moved out there or like retire? Retire. All in. Retire.

[Lisa]

I would, I would definitely be open to working a few more years. If I could find something remote that would be ideal. I don't know how much I would need to earn.

[Jill Schlesinger]

Well, right now, what do you spend just in, in terms of like all of your expenses with the. Some travel to California? Like, what do you spend right now?

[Lisa]

Well, with my, my rent aside, I, I keep it at around $2,000 a month or a little less.

[Jill Schlesinger]

Okay, so let's say 2000amonth plus. So. So really, it's about four grand a month with your rent. Okay. And that would go up to. That would go up to six grand a month.

[Lisa]

Correct.

[Jill Schlesinger]

Okay. Do you have any benefits that would continue after the age of 65? So you're, I presume you're saying I want to work till 65 because then you can qualify for Medicare. But is there anything else you get from the school after that or not?

[Lisa]

No. No.

[Jill Schlesinger]

Okay, so what is your Social Security benefit at age 67? 26.

[Lisa]

41.

[Jill Schlesinger]

26, 41. And what is it at age 73,423? Oh, you know, I'm talking to you because we yacked before we got on the air, but I didn't tell everybody that you are. You're single, correct? Correct.

[Lisa]

Just Me and my dog.

[Jill Schlesinger]

You and your dog. You and your dog hitting the road. I feel like going cross country. I feel like there was a road trip in our future. Your health is good, you, family health, like, looking forward. Is that, like, where are you with that?

[Lisa]

Well, my, my. Both my parents passed before 80. They both had health issues. I am, I've been very proactive for the last 15 years, going for checkups, going for screenings. I'm very healthy. I'm very, very active. I go on five mile hikes once every weekend. You know, I just follow up with all my doctors, and they're telling me everything looks good, that's great. But it scares me to know that both my parents pass before 80.

[Jill Schlesinger]

Yeah.

[Lisa]

And if I wait to 70 to retire.

[Jill Schlesinger]

Yep.

[Lisa]

If I have those genes that. And you know, I'd like more than 10 years with the kids, I can guarantee it.

[Jill Schlesinger]

No, I cannot do that. I can't. But, but we also have to kind of play the odds. Right. And we will. So let's kind of be clear about this. Where we stand right now is ide you'd like to retire at 65, then you move to California. But, you know, right now you have no debt.

[Lisa]

No debt, no debt.

[Jill Schlesinger]

So you're really fine at four grand a month. The question is, what happens if we have two grand a month extra, Making you at six grand a month for expenses? And I think that there are. I think this is a little bit of a tough one because on one hand I hear what you're saying, which is like, I want to go do this while I'm healthy. On the other hand, I'm looking at the numbers and I'm like, I'd kind of like you to earn a couple, you know, a little bit more money for another, like 65 in stone because you said you love your job and you're in education. So does that mean, can you, can you travel a little bit and spend some time in California? If I told you you had to work till 67, would that completely bum you out?

[Lisa]

Not at all. And I do have such great flexibility with this job because we follow a school schedule. I have so much time off that I pretty much had the month of August off, where I am going to California to stay with the kids.

[Jill Schlesinger]

Great. So that's awesome. Okay. I have a sense that this will work better if you work till 67. Mark, do you agree with that?

[Mark]

I do, I do. I think based on what we have and what we need, and, you know, she loves her job. Her rent is so cheap.

[Jill Schlesinger]

It's so cheap. That's why. I mean, what I think might be interesting, Mark, is to have her not. I don't. You have to put how much money into your 403B right now? Like, what do you put in to get that 30% match?

[Lisa]

I'm only able to afford to put in 10%.

[Jill Schlesinger]

What if you put that. What if you stop putting money in there and you put the eight grand into your high Yield savings account? I want you to build up some money that's not in the retirement account, Mark. Don't you think that's a better thing to do with eight grand a year for the next four years?

[Mark]

The match comes regardless. The company match. If you stop contributing, will you still get the company match?

[Lisa]

No, I will not.

[Jill Schlesinger]

So what do you have to do to put. You have to put eight grand to get the 30%, or can you put a little less?

[Lisa]

I can put in as much as I want and they'll match 30%.

[Jill Schlesinger]

So you just have to participate.

[Mark]

So they're matching 30% of whatever you put in?

[Lisa]

Yes.

[Jill Schlesinger]

Okay, I got it. Maybe I'm going to keep her doing it. What do you think, Mark?

[Mark]

I think I would. Yeah.

[Jill Schlesinger]

That's all right. So let's keep doing that. Okay, so you're going to put in 8 grand, which is essentially that, you know, 10,500 goes in a year. So that's going to keep. So just keep doing that. That's fine. If there's some extra money, squirrel it into your High Yield savings account. Now you do this for four more years and you live your life and you see what's going on. And I also think that like to go out and rent right now in California, right after the fires, especially because it's Southern California, the. The market is somewhat distorted. So maybe we've got to see. We'll see. Maybe things settle down a little bit in terms of the rental market. But as long as you can keep doing that. I think the idea would be at age 67, just because you're so. I mean, I don't think there's going to be a problem of you waiting till 70, and it's a pretty big jump for you that $800 a month is a real number. And so I'm wondering whether at age 67 you say, I'm retired, but you don't claim Social Security until you're 70 just because that number is so huge. Now here's what you would do in the interim years. Like at age 67 to 70, you'd pull money out of your 403, and you'd live on it. You would take out, let's say, 80 grand for three years. 80, 80, 80, right. You'd pay the tax on it. You'd live your life. Then at age 70, you'd claim Social Security. Okay. And then you would reduce the amount of money you're pulling out of your 403B little by little. And, you know, it all works better the longer you work. I want to be clear about that. It will. You'll have you. You could do this. It's a tiny bit of a roll of the dice, meaning that if all of a sudden you're thinking about doing this and it's two or three years from now or four years from now, you should either get back in touch with us, go to a financial planner and make sure these numbers work, because it won't work if all of a sudden we have gone, seen a huge run up in the market, and then boom, there is a terrible recession and the value of your portfolio goes down dramatically. You're not going to feel like you want to do this. I can tell you that right now. So we're going to have to retest it. I think you're pretty close. I think that if you can, you know, the cheaper the rent, the better. If it's not three grand a month, it's more like 2,700amonth in today's dollars, that would be better. But my inclination is to wait till 70. You are healthy. You are, you know, you have. Yes, you have your parents, genetics, but you sound like you're healthier than they were and you're more attuned to it. And that $800 difference is, it's a big jump for you. And as long as you can make this work and you have all that time saved up and the kids are like, you can really spend time and go out there and spend a month, then it seems to me you're in a very good situation right now. I don't think it's a 65. I think it's at least 67. And then maybe you see, maybe you're like, oh, you know what? This is working great. I'm going to spend a month here. Every school vacation, go to California. I got cheap rent. And, you know, of course this would change if all of a sudden your rent went up dramatically. But you're in a good place. And I would try to. As long as you don't hate work and you're happy and you can still see the family, you know, I think you're in good shape, but don't move just yet. How's that?

[Lisa]

I have a smile on my face.

[Jill Schlesinger]

Oh, okay. Good. Very good. I like, I like. Thank you for the visual. Now, Lisa, do you have your estate documents done?

[Lisa]

I do. Everything is all in place.

[Jill Schlesinger]

Okay, great. So I think for the interim, keep putting the 8,000 into your 403. Get that 30% match. If some money falls out of the sky and your life changes for some reason, get back in touch with us and we can help think this through. But I think your basic game plan is, I'm 63. I'm going to shoot for retirement at 67. If something really great happens between now and then, I'll give Jill and Mark a call again. And if not, let's see how I feel at 66 and a half and go from there. And I do think you're in this unique situation, as you said. Like, you've got flexibility. You've got the school vacation. You get to see your children and the grandchildren. That's kind of a great thing. So I just don't want you to plo. You know, I don't want you to spend all the money you've accumulated, go to California and then say, kids, hasn't this been great? But now I need some money. We don't want you to be. We don't want you to be put in that place. Okay?

[Lisa]

Exactly. Exactly.

[Jill Schlesinger]

All right. Now, this is your financial independence roadmap, okay? So if. If you. If anything changes, give us a holler. And we're so happy you got in touch with us. If anyone out there is in a similar kind of situation where you. You got something in your head, I really want to retire to blank age. Okay? All of that being said, it's great you can do that, but let's make sure that you are not putting yourself at risk and that you really have a more a reasonable game plan to get where you want to go. And it doesn't matter whether you're 63, 43, or 23, having some sort of roadmap that is able to adapt. You can adapt to this roadmap. Your life will change. But having some game plan is a very good way to feel like you have independence, control, all those things that we crave. So if you need some assistance, get in touch with us. Go to jillonmoney.com, click the contact us button, write us a note, let us know if you'd like to come on the air live. And we would be delighted to have you you can subscribe to us on the Odyssey app or wherever you find your favorite podcast. By the way, on that Odyssey app, you can also subscribe to Money Watch. Money Watch is where we drop those shows on Saturdays and Sundays, so check that out. Okie dokie. So listen, gang, Day before Independence Day, try to be careful out there. A lot of nutters on the road and you're driving. Be very careful. That's all I can say to you. Of course. Try to lift someone up. Change your work, change your wealth, change your life. Thank you for listening. We'll talk to you tomorrow.

[David Spade]

Hey, what's up Flies? This is David Spade. Dana Carvey. Look at. I know we never actually left, but I'll just say it. We are back with another season of Fly on the Wall. Every episode, including ones with guests, will now be on Vimeo. Every Thursday, you'll hear us and see us chatting with big name celebrities. And every Monday, you're stuck with just me and Dana. We react to news, what's trending, viral clips. Follow and listen to Fly on the Wall everywhere. You get your podcasts.