A man in his 60s with $4 million in retirement savings has vetoed his wife's $8,000 trip to Italy and says he cannot afford to stop working, according to a question submitted to MarketWatch's retirement advice column.
The man, who did not disclose his name or exact age, said his wife believes they cannot afford to retire. He overruled her on the Italy trip. The couple's $4 million portfolio would place them well above the threshold most financial planners consider sufficient for a comfortable retirement.
The dispute turns on a question financial advisers hear constantly: how much money is enough? The man said his concerns are specific — healthcare costs, long-term care, inflation, a prolonged bear market, and the possibility of living to 95.
"I worry about healthcare, long-term care, inflation, a long bear market and living to 95," he wrote.
Those fears are not unfounded. Fidelity Investments estimates a 65-year-old couple retiring in 2024 will need approximately $315,000 set aside for healthcare expenses alone, not counting long-term care. A private room in a nursing home averaged more than $116,000 per year in 2023, according to Genworth's annual Cost of Care Survey, and that figure rises annually.
At a 4% withdrawal rate — the standard rule of thumb in retirement planning — $4 million would generate roughly $160,000 per year in income before taxes. That is more than triple the median U.S. household income of about $74,580 reported by the Census Bureau for 2022.
But the man's anxiety reflects a broader pattern among affluent near-retirees. A 2023 survey by the Employee Benefit Research Institute found that only 27% of workers with $1 million or more in savings felt "very confident" they would have enough for a comfortable retirement. Among all workers, confidence was similarly low.
The Italy trip costs $8,000 — or 0.2% of the couple's portfolio. A single year of nursing home care at current rates would consume roughly 2.9% of the $4 million.
MarketWatch columnist Quentin Fottrell, who writes the "Moneyist" advice column, responded to the question. He noted that the man's fears are legitimate but that refusing to spend any money defeats the purpose of saving. Fottrell pointed out that the man could work part-time or consult rather than continuing full-time work out of fear.
The man's wife has a different view of their finances. According to the column, she believes they cannot afford to retire — but she also wanted to take the trip. The couple's disagreement is less about the $8,000 than about what the money is for.
Financial planners generally recommend that retirees calculate expenses based on actual spending rather than worst-case scenarios. Vanguard's 2023 "How America Saves" report found that the median retirement account balance for Americans aged 65 and older was $87,725 — roughly 2% of what this couple has saved.
The man asked whether he should keep working. Fottrell's response suggested that at some point, the answer is not about the math but about whether the money gets used at all.