A 71-year-old American still working full time and earning $108,000 a year is asking whether he should retire, according to a question submitted to MarketWatch's financial advice column.
The man says he has $152,000 saved across his IRA and Roth accounts. He did not disclose his monthly expenses, Social Security income, or whether he carries debt.
His question reflects a growing reality in the United States. More older Americans are staying in the workforce past 65, driven by longer life spans, rising health care costs, and savings that fall short of what retirement calculators say they need.
Financial planners generally use the "4% rule" as a rough benchmark. Under that guideline, a retiree withdraws 4% of their savings in the first year of retirement and adjusts for inflation after that. Applied to $152,000, that would generate about $6,080 a year, or roughly $507 a month, before taxes.
That figure alone would not replace a $108,000 salary. But the man's full financial picture, including any Social Security benefits, pension income, or a paid-off home, could change the math significantly.
Social Security pays the average retired worker about $1,900 a month as of 2024, according to the Social Security Administration. A worker who earned $108,000 a year would likely qualify for a benefit above that average, especially if he delayed claiming past his full retirement age.
Delaying benefits past full retirement age increases monthly payments by about 8% for each year of delay, up to age 70. At 71, the man has already passed that threshold, meaning his benefit has maxed out.
MarketWatch's advice column, "The Moneyist," answers reader questions about money and ethics. The column did not publish a specific recommendation for the man in the summary provided.
Experts who study retirement say the decision to keep working is rarely just about money. Research from the Stanford Center on Longevity and other institutions shows that working longer can improve mental health, social connection, and physical activity for some older adults.
But the choice cuts both ways. Workers who stay on the job past 70 may face health problems, caregiving duties, or age discrimination that pushes them out whether they are ready or not.
The man's case also highlights a broader gap. The Federal Reserve's 2023 Survey of Consumer Finances found that the median retirement account balance for Americans aged 65 to 74 was about $200,000. Many workers have far less.
For now, the man continues to work and collect his salary. Whether he retires depends on details he has not shared publicly, including his spending, his health, and what he wants the next chapter of his life to look like.
