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

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.

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.

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.

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."

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.

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.

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.