54-Year-Old With $2.5 Million In Savings Says Wife Thinks Retirement Isn’t Enough – Dave Ramsey Jokes: ‘Retirement Isn’t a Feeling’

On a recent episode of The Ramsey Show, financial expert Dave Ramsey discussed a pension dispute brought forward by Jason from Hartford, Connecticut.

Jason, 54, wanted to retire at 55, but his wife, 51, felt they weren’t financially prepared. With about $2.5 million saved, Jason believed they had enough to live comfortably, especially with a potential side job, but he asked Ramsey for advice on how to resolve their disagreement.

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“Retirement is not a feeling,” Ramsey said, emphasizing the importance of evaluating facts and data over emotions. He asked Jason for specific information about their finances to assess the situation.

Jason revealed that their monthly expenses were around $8,000, which equates to $100,000 per year. Ramsey noted that with $2.5 million invested in good mutual funds, earning a 10% return would generate $250,000 per year.

“Mathematically, the answer is you’re doing just fine,” Ramsey assured Jason, emphasizing that his wife’s $160,000 annual salary would cover their expenses even without Jason’s income. Ramsey further advised Jason to consider starting a small business instead of a traditional pension, as it would keep him engaged and provide additional income.

Also see: How much money will a $200,000 a month annuity pay out? The numbers may shock you.

Ramsey also addressed the emotional aspect of the disagreement, saying, “I think there’s a lot more going on here than that.” He suggested that despite the solid numbers, Jason’s wife may have deeper concerns about financial security. “She doesn’t want to believe it for some reason, and that’s your core issue,” he explained.

Finally, Ramsey encouraged Jason to have a more in-depth conversation with his wife about her concerns, indicating that understanding and addressing her emotional concerns would be critical to their retirement planning.

The average 54-year-old couple has between $290,000 and $370,000 saved for retirement. Experts recommend that couples at this age should have about six to seven times their annual salary saved. Despite these recommendations, many believe they need about $1.46 million to retire comfortably, according to a study by Northwestern Mutual.

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According to the Federal Reserve’s latest Survey of Consumer Finance, only 10% of people retire with $1 million in savings. The median retirement savings account balance for families, including all age groups, is just $87,000. Based on these numbers, Jason and his wife would be in the top 5% of savers.

This discrepancy between actual savings and perceived needs often contributes to the anxiety surrounding retirement decisions, as Jason’s situation illustrates.

By focusing on factual financial assessments and open communication, couples can better navigate the complexities of retirement planning and ensure they are financially and emotionally prepared for the future. Consulting with a financial advisor can help you set realistic goals, plan for the future, and determine what you need to live the life you want.

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This article 54-Year-Old With $2.5 Million In Savings Says His Wife Thinks It’s Not Enough To Retire – Dave Ramsey Jokes, ‘Retirement Isn’t a Feeling’ originally appeared on Benzinga.com

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