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“I Have an Economics Degree from a Great University”: I’m 71 with $3 Million and Make $250K — Is It Time to Retire?

At 71, sitting on $3 million in savings and still earning a solid $250,000 a year, the question isn’t really “Can I retire?” but more like “Should I?” This isn’t your typical retirement dilemma. When you have both a healthy nest egg and a steady paycheck, deciding what’s next gets tricky. It’s not just about the numbers — it’s about what feels right for you.

The Numbers Look Great — But Don’t Let Them Be the Whole Story

With $3 million, most financial experts would say you’re in fantastic shape. Following the classic 4% withdrawal rule, you could pull out roughly $120,000 a year without dipping into your principal. And since you’re still earning $250,000 annually, you’re not even touching that nest egg yet.

But here’s the catch — life isn’t static. Inflation, lifestyle upgrades, family needs, and unexpected health expenses can quietly chip away at even a solid portfolio. I’ve noticed that folks who have earned big paychecks for years often underestimate how much they truly spend once they stop tallying every dollar.

The Real Question: What Do You Want Out of Life Now?

It’s easy to get lost in spreadsheets and retirement calculators, but at 71, time becomes your most valuable asset. Do you genuinely enjoy your work? Are you feeling healthy and energized? Or do you have passions and projects you’ve shelved because life got too busy?

I’ve met retirees with profiles like yours who found new purpose by consulting, volunteering, or traveling. Some discovered more fulfillment than they expected. Others, after a few months off, felt a bit lost and wished they’d eased into retirement with some part-time work.

This part can’t be measured by any formula — it’s deeply personal.

What’s Going On With the Market?

We’re in an unusual market phase. Inflation has calmed down but hasn’t disappeared. The stock market, like the S&P 500, is hovering near all-time highs, and bond yields have improved compared to a few years ago. Still, there are no guarantees.

Remember: $3 million today doesn’t stretch as far as it did a decade ago. Healthcare expenses, in particular, can surprise you. Long-term care insurance is pricey and coverage is tightening. If your current income comfortably covers your expenses and lets you save, that financial cushion is more than just peace of mind — it’s a safety net for life’s curveballs.

Social Security and Required Minimum Distributions (RMDs)

At 71, you’re either already dealing with or about to face Required Minimum Distributions from your retirement accounts. The IRS doesn’t wait around, and these RMDs can bump up your taxable income, sometimes pushing you into a higher tax bracket. Many people are surprised by how much their tax bills jump once they retire.

Since you’re still working, you’re probably delaying Social Security benefits, which is usually smart if you’re a high earner. Your benefit increases every year you wait until age 70, but after that, there’s no gain. If you haven’t started collecting yet, it’s worth thinking about.

Thinking About Legacy and Gifting

With $3 million, estate planning should be on your radar. The estate tax exemption is pretty generous right now, but that can change with policy shifts. Gifting strategies, donor-advised funds, and trusts can protect your money and help pass it on wisely. I’ve seen families lose big chunks of wealth simply because they didn’t plan ahead.

If leaving a legacy or helping your children and grandchildren matters to you, now’s the time to get those plans in motion.

What If You Keep Working?

The biggest risk isn’t money — it’s health. Transitioning from a full-time job to retirement can be jarring, but suddenly being forced out because of illness is even tougher. If you love your work and it doesn’t drain you, there’s no rush to quit.

That said, I’ve seen too many people look back wishing they’d taken a break while they still had the energy to travel, write, or just relax. Also, remember that at some point, every extra dollar you earn is taxed heavily and might not add much to your quality of life. If you’re working “just because,” it could be time to rethink things.

Where This Advice Might Not Fit

Not everyone with your resources should retire now. Here’s when the plan can fall short:

• Healthcare surprises: Medicare helps, but medical costs can skyrocket, especially with long-term care, dementia, or chronic illnesses. If your family has a history of expensive health issues, you might want a bigger financial cushion.
• Supporting family: Helping adult kids, grandkids, or a spouse with costly needs can shrink your financial runway fast. I’ve seen inheritances disappear because of one unexpected family crisis.

The Psychological Side of Retirement

Few people talk about how much retiring changes your sense of identity. For many high achievers, work is a big part of who they are. Walking away can feel like losing a piece of yourself. I’ve seen people slide into depression because they didn’t have a plan to fill their days.

The happiest retirees I know created a “third act” — maybe consulting, teaching, or volunteering. Financial freedom gives you choices, but you have to decide what makes you feel fulfilled.

So, Should You Retire?

You’ve got the money. You’re healthy. You’re still earning. The real question is: what kind of days do you want to have? If work still gives you purpose, keep going. But if you’re hanging on out of habit or fear, it’s time for an honest look at your numbers and maybe a gradual retirement plan.

If you do make the leap, plan your first year carefully. Fill it with travel, hobbies, family time, or even some part-time gigs. Don’t just drift.

Wrapping It Up

Your economics degree gave you the tools to model the future, but life isn’t just math. The best decision blends security with meaning and flexibility. Plan for both the expected and the surprises, and don’t let fear keep you stuck.

Retirement isn’t the end — it’s a new kind of freedom.

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