Is 67 Our Magic Number to Retire?

Summary

Podcast Summary: Jill on Money with Jill Schlesinger

Episode: Is 67 Our Magic Number to Retire?
Date: March 24, 2026
Host: Jill Schlesinger
Guest: Listener Jay from Atlanta

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Episode Overview

In this episode, Jill Schlesinger takes a listener call from Jay in Atlanta, who wants to know if she and her husband can both retire at 67. The conversation provides a real-world case study of retirement planning, covering questions about income, savings, pensions, spending habits, and how to draw down accounts. Jill offers direct, jargon-free advice and highlights the rare situation where Social Security alone covers most retirement expenses. The episode is relatable, practical, and filled with humor, showcasing how financial diligence can lead to a secure retirement.

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Key Discussion Points & Insights

1. Listener Profile & Financial Rundown

[03:38 - 07:13]

• Jay and her husband are both 62, working and earning a combined $165,000 per year.
• Retirement savings breakdown:
  • Jay has $175K in her Vanguard 401(k)/Roth accounts.
  • Husband has mainly Roth accounts at Fidelity (details: $112K cash, $128K brokerage, $6K rollover IRA, $25K Roth; Jay has $30K Roth in Fidelity).
  • Jay also maximizes her HSA and receives a 6% company match on her 401(k).
• Home is valued at $296,000, with $36,000 left on a low-rate mortgage (2.875%), expected to be paid off in five years.
• Both are in good health and have grown, independent children.

2. Pension and Social Security Analysis

[07:14 - 08:06, 08:54 - 09:36]

• Jay is entitled to a pension (not her husband):
  • At 67, joint and survivor benefit would pay $1,596/month (75%) or $1,659/month (50% option).
• Social Security at 67:
  • Jay: $3,151/month
  • Husband: $2,399/month

3. Spending Habits and Retirement Feasibility

[08:06 - 09:36]

• Current monthly spending, including mortgage: $2,171.
• Jill suggests adding more for travel/fun (“Can we, say, three grand a month at least?” [08:38]), but Jay insists their lifestyle is simple and low-cost.
• Jill and producer Mark marvel at how rare it is for retirees’ Social Security payments to cover all their needs ("That would be very rare. It's very rare. Truly." [08:54]).

4. Jill's Assessment and Next Steps

[09:36 - 12:01]

• Jill affirms Jay and her husband are in “very strong financial shape,” with Social Security covering basics and the pension as "the cherry on top."
• Jay is encouraged to begin slow withdrawals from tax-deferred accounts post-retirement (before RMD age), aiming to stay within the 22% tax bracket.
• If the husband wants to retire before 67, they could tap these accounts to fill any income gaps.

5. Practical and Philosophical Reflections

[10:45 - 14:00]

• Jill asks if the couple’s good habits have transferred to their kids. Jay feels confident they have.
• Discussion about cost of living; producer Mark is amazed at Jay’s low utility and insurance bills, prompting jokes about moving to Atlanta ("Mark is ready to move to Atlanta" [10:03]).
• Jill reflects on how some listeners in high cost-of-living areas may find Jay’s expenses “incredible.”

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Notable Quotes & Memorable Moments

• “67. Social Security covers it all. Yeah. How many times do we have two working folks whose Social Security payments cover their needs? That would be very rare. It's very rare. Truly.”
  — Jill Schlesinger [08:54]

• “You guys are in great shape. You really are. And there's...I don't see any, like, big holes in all of this.”
  — Jill Schlesinger [09:36]

• “We don't (spend more). But you can.”
  — Jay, on lifestyle choices [08:41]

• “Jay's a hoot, I can tell you that. I love that. I love...I'd love to get a drink with Jay. Yeah, definitely.”
  — Jill Schlesinger [08:53]
  “Jay doesn't drink.”
  — Jay [08:55]

• “You will have income, you will have savings...you have the Vanguard accounts, you've got the Fidelity accounts, you got the HSA. I mean, you're in very strong financial shape. Did you kind of know that coming in?”
  — Jill Schlesinger [09:52]

• “You're not going to let him do that without you. Come on. Maybe you might. All right. You're in good shape, Jay. Jay from Georgia. She's a Georgia peach.”
  — Jill Schlesinger [14:00]

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Timestamps of Key Segments

• [03:38 - 07:13]: Jay introduces her retirement question and financial background.
• [07:14 - 08:06]: Discussion on pensions and Social Security benefit estimates.
• [08:06 - 09:36]: Review of spending needs; Social Security as a primary income source in retirement.
• [09:36 - 12:01]: Jill’s assessment and advice for drawing down accounts.
• [12:01 - 14:00]: Talk around retiring early, flexibility, and lifestyle.
• [10:03 & 10:43]: Low utility costs and commentary on cost-of-living differences across regions.

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Tone and Takeaways

Jill’s style is direct, friendly, and practical. The episode’s tone is upbeat, supportive, and slightly humorous, especially as she and Mark react in disbelief to Jay’s low spending. The key message: diligent planning and living within one’s means can yield a rare situation where government retirement benefits cover most needs, freeing up investments to provide additional security or flexibility. Jill emphasizes that each situation is unique and encourages listeners to reach out for customized advice.

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Actionable Advice from Jill

• Run the numbers on your retirement—be thorough with expenses.
• Don't underestimate the power of low-cost living and consistent saving.
• Consider slow withdrawals from pre-tax accounts after retirement but before RMDs to stay tax-efficient.
• Make sure estate planning (wills, etc.) is updated.
• Don’t hesitate to reach out for a personalized review, even if you feel confident about your financial path.

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For more interactive advice and financial planning conversations like this, visit jillonmoney.com and consider joining the show!

Transcript

[A]

Hey gang, you know, subscriptions are one of those things that feel small in the moment, and then suddenly you're wondering why you are paying for all these things that you barely use. That's where Experian subscription cancellation comes in. Experian can take the pain out of canceling subscriptions by handling it for you. Just keep the ones you want, cancel the ones you don't, and put the money back in your pocket instead of spending your time trying to cancel subscriptions. If you even do that. And you know there are over 200 subscriptions that are cancelable, which means that there are a lots of opportunities to clean things up. And it doesn't stop there. You can also save money by letting Experian negotiate the rates on bills you're already paying. They'll keep an eye out for new deals and savings opportunities and negotiate directly with your provider on your behalf. Get started with the Experian app now. Results will vary. Not all bills or subscriptions eligible. Savings not guaranteed Paid membership with connected payment account required. See experian.com for details. Hey gang, I've recently been thinking about how to make my home feel more functional, not just aesthetically pleasing. I love a good design moment. But you know what? Your space has to work for you. That's why I turned to Wayfair. My big purchases, there were very bright desk lights so that I could actually do my work early in the morning before the sun comes up. And then I got this kind of cool pouf that my dogs like sitting on while I do my work. And my next task is some new storage solutions for my closet, some shelving, probably even for my garage. And what makes Wayfair easy is being able to filter everything by size, finish, price and style. Find furniture, decor, and essentials that fit your unique style and budget. Head to Wayfair.com right now to shop all things home. That's W A Y F A I R.com Wayfair Every Style Every Home welcome to the Jill on Money show. It's Tuesday, March 24th. Yeah, gang, it's the spring. We're excited. You are ready to rock and roll. You just maybe have gotten through tax season. Maybe you're getting through tax season. This is the time of the year where I really think you've got a great opportunity to focus on your your financial needs. Maybe you've got your arms around some of your documents you really get, hey, this is how much money is being thrown off from an investment account. Or you've just started to focus a little bit more. Get in touch with us. If you've got an issue, if something just is bubbling up for you again, this is the time of year where I really think things do start to occur. So go to our website, jillonmoney.com, click the contact us button, write us a note, and if you don't think you're going to join us on the program, give us a lot of detail, including, you know, my most important thing that I'm asking you for is how much money do you spend? What are your expenses? Figure that out before and shoot that to us in your note. If you are going to join us live, also have that number at your fingertips. But you can just check the box and Mark will do everything else. So, yeah, do that all on the website. You can also check out our other show, which is called Money Watch. We drop those episodes on Saturdays and Sundays. We've got a blog and videos and resources, all for free on the website. Today we are heading south to talk to our friend Jay, who's on the line from Atlanta. Hello, Jay. How are you?

[B]

Hello. I'm doing great. Yourself?

[A]

Fantastic. What can we do for you?

[B]

I'd like to know if hubby and I can retire at the same time. At the age of 67.

[A]

How old are you right now?

[B]

62.

[A]

Okay, you're both working.

[B]

Yes.

[A]

How old is he?

[B]

62.

[A]

Okay, you're Both 62. How much are you guys earning?

[B]

We collectively earned, let's see, 165 last year.

[A]

Great. Have you guys been saving in retirement accounts?

[B]

Yes.

[A]

Tell us about what you've accumulated.

[B]

Okay, so for my Vanguard employee, 401K. Yeah. So part of it is 401.

[A]

Yep.

[B]

The rest is Roth. When they finally launched that.

[A]

How much money do you have in both of these accounts?

[B]

Approximately 175k.

[A]

175 grand. And that's just you, not your husband, right?

[B]

Yes.

[A]

Okay, so 175. Now, what about your husband? What does he have?

[B]

All his money is Roth's. Infidelity.

[A]

Yeah.

[B]

So he doesn't do TSP or anything like that, if that's your question.

[A]

Yeah. What do you got in Fidelity accounts?

[B]

Okay, let's see. So for Fidelity, we have the cash is 111,595.

[A]

All right, just round it up or down. Come on now.

[B]

112 brokerage is 128.

[A]

128, yep.

[B]

And then his. I'm sorry, his rollover IRA, I forgot about that is 6160. Then his Roth is 25. 167.

[A]

Okay.

[B]

That's my Roth with fidelity is 30,156. And then I already gave him my Vanguard. And then I also maxed out at the HSA with work.

[A]

Yep.

[B]

And then I contribute 15% with the company matches 6% Vanguard.

[A]

Okay, so are you either entitled to a pension?

[B]

I was waiting for you to ask me that question.

[A]

Hit it.

[B]

Yes, I do. I am.

[A]

All right. So are you both or just you?

[B]

Just me.

[A]

And what will your pension benefit be at age 67? Do you know that? Or is it now or 65?

[B]

It didn't. It didn't do that type of breakdown. It just gave that the compensation amount. At what age? In my commencement. So commencement age. I put in 67.

[A]

Yeah.

[B]

And then it gives a single annuity. 50. You know the other.

[A]

All right, and. And give me the. The annuity amount that is joint. When it's like joint and survivor.

[B]

Okay, so there's a 50%. Joint is a 75%.

[A]

50%.

[B]

50 is 1659 monthly.

[A]

Okay.

[B]

And then 75 is 1596.

[A]

Oh, 15.96. Not that big a deal. I'll take that haircut. How's your health, both of you guys? Oh, eh.

[B]

No, not eh. Above it.

[A]

Okay, good. Like. Okay.

[B]

Yeah, good.

[A]

Good.

[B]

Could be better, but good.

[A]

Okay, I gotcha. Do you guys own a home?

[B]

Yes.

[A]

How much is that worth?

[B]

296.

[A]

A mortgage or no mortgage?

[B]

Mortgage of 3,000, 621 at 2.875.

[A]

You mean 3,000 is left. That's it.

[B]

No, 36,000, 261.

[A]

That'll get paid off. When. When will you be done with that?

[B]

Probably within the next five years, I think.

[A]

Yeah, sooner you guys have grown kids.

[B]

Yes.

[A]

Okay. They're fine. You're not helping them here and there,

[B]

but not to a point where I have to tell you about it.

[A]

She got that, Mark, I'm not telling you. Mind your own business.

[B]

It won't affect. Yeah, it won't affect what we're talking about.

[A]

Okay, let's look at something. Let's, like, kind of wind the clock forward.

[B]

You want to ask about Social Security?

[A]

Yes. I want to know at age 67 what your benefits look like.

[B]

So for me, 3151 for Mr. 23.99.

[A]

Okay, you ready for your magic question? You ready?

[B]

Yes.

[A]

How much you guys, like, in five years, your mortgage will be paid off. Okay, so pretend you don't have the mortgage. How much you guys spending right now?

[B]

Oh, you're going to flip. So I included the mortgage 2171.

[A]

Stop it.

[B]

No, I. Actually, we don't. We're very.

[A]

Hold on a second. You're telling me 20, like, for. With everything, like, fun money. We're gonna go see our kids. We're gonna go.

[B]

I didn't include that because we don't do that.

[A]

All right, but what about something fun? Do. Can you put some fun in there? Can we, say, three grand a month at least?

[B]

You can.

[A]

All right. You may not, but, yeah, we.

[B]

No, we don't. But you can.

[A]

Okay. Mark, what do you think about Jay? She think she's in pretty good shape, huh? Jay's a hoot, I can tell you that. I love that. I love. I'd love to get a drink with Jay. Yeah, definitely.

[B]

Jay doesn't drink.

[A]

Oh, all right. Well, that's okay, too. Well, let me just say this, Mark. 67. Social Security covers it all. Yeah. How many times do we have two working folks whose Social Security payments cover their needs? That would be very rare. It's very rare. Truly. So I think you probably know this intuitively, Jay, that, you know, in some respects, the Social Security is awesome. The pensions, the cherry on top. You guys are in great shape. You really are. And there's. I don't see any, like, big holes in all of this. You've got.

[B]

In.

[A]

You will have income, you will have savings. Like, you'll have that again. You have the Vanguard accounts, you've got the Fidelity accounts, you got the hsa. I mean, you're in very strong financial shape. Did you kind of know that coming in?

[B]

Yes.

[A]

Okay, so why'd you call us? Just to hang?

[B]

Just to say, hey, guys.

[A]

Hey, you know what? I love this. Do you guys have your wills done?

[B]

Yes.

[A]

Okay. I mean, what's your utility bill down there? That's like. Okay, now Mark is ready to move to Atlanta. What is your utility bill?

[B]

So, water is about $62. Gas is 56. Insurance for three, cars is 362.

[A]

Jeez.

[B]

My. My highest bill is the mortgage. Right.

[A]

Which is going to get done.

[B]

Yeah. But actually, P and I. You guys are going to flip. It's only 500.

[A]

Wow. Wow.

[B]

The taxes are. The taxes in the homeowners insurance.

[A]

It's not like we're talking about the middle of nowhere, Kansas. We're talking about. I know You're. You're. By the way, Mark, thanks for pissing off everyone in the middle of nowhere, Kansas.

[B]

Yeah, we're not in the hicks for sure.

[A]

No, you're so you. But you've also lived within your means. You don't have any debt besides the mortgage. So do you think that your kids have learned this lesson now? You know, no one knows who your kids are, but have your good habits gone down to the next generation? Yeah. You think so?

[B]

Okay.

[A]

I think that people have a real concern that, you know, on one hand you sort of say to yourself, listen, I worked my butt off. My job is to like, get these kids, you know, launched. But a lot of people feel like. And I'm sure you have this a little bit, which is like, you know, if I can help them, I can because you guys are in good shape. Right? You know, so that's fine. I. I don't have an issue with that. But I do think people have a concern about making sure that they're not innate. Like, that their kids are okay without them. That like, you've created people who can manage their own lives. And it sounds like you have.

[B]

Amazing. We're doing our best.

[A]

Fantastic. What else can we tell you? Anything.

[B]

I'm curious about the drawdown accounts.

[A]

Aha. You're not gonna have to draw anything down. I mean, essentially, are you using all Roth right now?

[B]

Yes. Okay.

[A]

I love her so much. So, you know, essentially, when you are retired at age 67, you will have income. You know that. Right. But your tax bracket might go down. You might start to slowly pull some money out of those accounts that have not yet been taxed. So that would mean your traditional Additional Vanguard account. And then also, you know, your husband's fidelity rollover, which is, you know, only. What you said, 6,000 bucks, whatever, hasn't been taxed. You're going to want to try to pull out slowly again. Doesn't have to be nothing serious. But between the ages of 67 and 75, your goal will be to stay in the 22% tax bracket. Okay. And you'll be able to do that. It'll be very easy to do because, you know, you're just going to pull a little bit out at a time. Do you have a sense of like, gosh, I really would like to stop sooner rather than 67. Are you okay? Work until 67.

[B]

I think he wants to retire before I do. I just, I was just curious to see if we could do it at the same time. I have been work. He works for the government, which he's currently under the DHS situation.

[A]

Uh huh.

[B]

And then I'm private, of course. Course. But I've been working from home since COVID hit. So if I could do this until 70, I'm good.

[A]

But I mean, think of it this way. If he said to you, I want to really, I'm done. Like, I want to be done in a few years. Let's say he says, I'm done at 65, you probably can afford that. If that were the case, if he's done at 65, what I would do is I would start taking money out of those traditional accounts just to fill fund the difference. Right. Like if you say, I can't really live on our just our one salary, but you can, but I would start taking some of the money out sooner for him. He should not feel compelled to like, oh my God, I have to work and I'm in a bad situation. He really shouldn't.

[B]

Yeah, he doesn't feel that, you know,

[A]

you're not going to let him do that without you. Come on, Maybe you might. All right. You're in good shape, Jay. Jay from Georgia. She's a Georgia peach. Thank you for joining us. Hey, gang, are you looking ahead? And by the way, Mark, this is so good because this is now I don't get the hate mail. Like, hey, guess what? Jay just doesn't spend a lot of money. But what I do hear about is people who live in high cost of living areas who hear these stories. And like you, Mark, you were incredulous at this. Spend $2,200 a month. We're trying to get her to spend three grand a month. She can't even do it. And I know that when you live in a high cost of living area, that seems insane, but it just shows you greener pastures exist potentially. Or maybe you make more money living in these high cost of living areas. Whatever it is, whatever's going on for you, how about just getting in touch with us so that we can walk you through what your options are? Go to jillonmoney.com, click the contact us button. Write us a note if you'd like to join us on the air live because we had so much fun with Jay. Check the box. Mark does everything else while you're on the website. Don't forget, sign up for the free weekly newsletter. You can subscribe to us on the Odyssey app or wherever you find your favorite podcast. 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. Thank you for listening and we'll talk to you tomorrow. Hey, gang. I just made a first time ever purchase on behalf of the pod. I was so psyched because Mark and I don't do a lot of promotional materials, but I was able to create a branded sweatshirt. Yep, a Jill on Money branded sweatshirt with vistaprint. Now, I'm not usually good at these things, but Vistaprint made it simple to bring this idea like, oh, wouldn't it be cool if Mark and I could create some sweatshirts that we'll try out and maybe the listeners would want to get them as well. They've got these great design tools. They have fast shipping, human support if you need a little guidance along the way. Because the sweatshirts were so easy to execute. Now I'm thinking about doing some other stuff. Maybe there's some baseball caps or, I don't know, other fun stuff that you guys would want. You'll let us know. There's a reason that over a million people trust Vistaprint for their small business print needs. Vistaprint print your possible right now new customers get 20% off with code [e-mail]

[C]

have you ever felt like you were living just a B or B plus life? It's so dangerous to live that. More dangerous than a B minus or a C plus life? Because when you're living a B or B plus life, you don't change it. You think it's good enough. Is it? I'm Susie Welch. I host a podcast called Becoming you. People think okay, an A plus life is not available to me, but there is a way. We are all in the process of becoming ourselves. Listen to Becoming youg wherever you get your podcasts.