Podcast Summary: Jill on Money with Jill Schlesinger Episode Title: On Track for Retirement at 65? Release Date: March 3, 2025

Introduction

In the episode titled "On Track for Retirement at 65?", host Jill Schlesinger, CFP®, delves into the intricacies of retirement planning through a real-life listener scenario. Joined by co-host Mark Telercio, they dissect the financial strategies and considerations essential for a secure retirement at the age of 65. This episode provides valuable insights for anyone navigating the complexities of retirement planning, emphasizing practical advice over financial jargon.

Listener Spotlight: Renee's Retirement Journey

Timestamp: [03:28]

Renee from Washington State reached out to the show seeking guidance on her retirement plans. At 60 years old, she aims to retire in five years and is evaluating whether she's on the right path to sustain a comfortable retirement at 65. Renee's financial landscape includes:

• Income: $125,000 annually
• Pensions:
  • City of Lewiston, Idaho: $2,200/month starting at 65
  • Current Employer: $3,300/month starting at 65
• Retirement Savings:
  • 457B Plan: $400,000 (traditional, rolled over from a 401k)
• Savings: $85,000 across checking, savings, and money market accounts
• Mortgage: $230,000 remaining on a $400,000 home at 4.5% interest
• Personal Situation: Single, cohabiting with a boyfriend, and sharing household expenses

Renee's primary concerns revolve around ensuring her retirement funds are sufficient to support her and her partner's lifestyle, anticipating monthly expenses of around $9,000.

In-Depth Analysis and Advice

Timestamp: [07:06] - [19:42]

Jill and Mark engage in a comprehensive discussion, evaluating Renee's financial strategy:

1. Pension and Savings Assessment:

   • Total Monthly Income at 65:
     • Pensions: $2,200 (Idaho) + $3,300 (current job) = $5,500
     • Social Security: Renee plans to delay until 70, expecting around $4,000/month
   • Retirement Savings Usage:
     • With $400,000 in her 457B plan, Vince will support additional expenses beyond the pensions and Social Security.

2. Expense Evaluation:

   • Initial Claim: Renee estimates needing $9,000/month.
   • Reassessment: Upon review, it appears Renee may actually require closer to $7,000/month, which would be more attainable given her current savings and planned income streams.

3. Investment and Savings Strategies:

   • Contributions to 457B: Currently at 6% of her salary, Jill suggests maintaining or slightly increasing this contribution to bolster her retirement funds.
   • Roth IRA Consideration: Opening a Roth IRA is recommended to take advantage of tax-free growth and withdrawals, providing additional financial flexibility.
   • Emergency Cushion: Building a larger savings buffer to account for unforeseen expenses or market fluctuations is advised.

4. Estate Planning:

   • Will and Beneficiaries: Renee is prompted to update her will and ensure all beneficiary designations are current to prevent unintended allocations of her assets.

5. Joint Financial Planning:

   • Partner's Financial Status: Understanding her boyfriend's retirement plans and savings can provide a more comprehensive picture of their combined financial health.

Notable Quotes:

• Jill Schlesinger [07:04]: "You are currently working and you said you're going to work for five more years."
• Renee [08:10]: "I'd like to have upwards of $9,000 a month."
• Jill Schlesinger [12:23]: "I think you're probably sort of taking this as sort of simple math."
• Renee [17:55]: "If I was just on me, it would be right around $50,500 a month."
• Jill Schlesinger [19:24]: "Make sure you get that done. It's very easy to do."

Key Insights and Conclusions

• Realistic Budgeting: It's crucial to have an accurate understanding of monthly expenses. Overestimating or underestimating can significantly impact retirement readiness.

• Diversified Savings Strategy: Relying solely on pensions and Social Security may not suffice for desired lifestyles. Diversifying retirement savings through plans like a 457B and Roth IRA can provide additional financial security.

• Building an Emergency Fund: Maintaining a robust savings cushion ensures flexibility in the face of unexpected expenses or market downturns.

• Estate Planning: Regularly updating legal documents, such as wills and beneficiary designations, is essential to protect one's assets and ensure they are distributed according to personal wishes.

• Joint Financial Planning: When in a partnership, aligning financial goals and understanding each other's financial status can enhance overall retirement security.

Conclusion

In "On Track for Retirement at 65?", Jill Schlesinger effectively breaks down the critical components of retirement planning through Renee's scenario. The discussion underscores the importance of comprehensive financial planning, realistic budgeting, and proactive savings strategies. Listeners are encouraged to assess their own financial situations, seek professional advice, and take actionable steps to secure their retirement future.

Additional Resources

• Jill on Money Website: For personalized financial advice, visit jillonmoney.com and use the "Contact Us" feature to submit your questions.
• Live Webinar with Ed Slott: Join the upcoming webinar on March 6th at 7 PM Eastern Time. Membership details available on the website.
• Free Weekly Newsletter: Subscribe every Friday for the latest financial insights.

This summary aims to provide a comprehensive overview of the podcast episode "On Track for Retirement at 65?" from "Jill on Money with Jill Schlesinger." For a deeper dive into the topics discussed, listening to the full episode is recommended.