At 71 and Earning $108K, Is Continuing to Work the Right Call?

A 71-year-old worker earning $108,000 annually is asking a question more older Americans are confronting: when the paycheck is still coming in, does it make sense to keep working? The person holds $152,000 across IRA and Roth accounts, a balance that raises practical questions about retirement readiness and the trade-offs between income today and leisure later.

Financial planners generally weigh several factors for workers in this situation — Social Security timing, required minimum distributions that kick in at age 73, and whether continued employment is closing a meaningful wealth gap or simply delaying an overdue transition. At 71, an RMD clock is approaching, which means the IRA balance will eventually be subject to mandatory annual withdrawals regardless of employment status.

Read more Reader Asks: Must I Alone Support a Struggling Cousin? →

The $108,000 income is significant, offering not just cash flow but potentially continued access to employer benefits like health insurance — a critical consideration for anyone not yet on Medicare or seeking supplemental coverage. However, analysts note that high earners working into their seventies must also factor in the opportunity cost of time and the diminishing marginal utility of additional savings at an advanced age.

The question ultimately forces a reckoning between financial security and quality of life — two variables that don't always move in the same direction for older workers. Whether the math supports retirement depends heavily on anticipated expenses, Social Security benefits already claimed or deferred, and how far $152,000 in retirement savings stretches alongside other income sources.

Continue reading at MarketWatch.com