A woman has penned a letter to a money advice columnist asking whether her 69-year-old husband is right to worry that $3.7million is not enough to retire on.
The New Zealand Herald reader told financial expert Mary Holm her husband was starting to experience a few health issues and she ‘wants him to retire’.
But her husband is reluctant to give up work altogether because he fears ‘we can’t afford it and that I’ll be penniless and living in my car if he dies’.
She explained that, after selling their second property, the baby boomer couple would be left with ‘a mortgage-free home’ and about NZ$4million (AU$3.7million) in the bank – which she feels is ‘enough’ for a comfortable retirement.
Her husband disagrees, however.
Ms Holm was stunned by the woman’s letter – admitting it was the latest in a string of correspondence from older readers worried about their finances when in fact they have nothing to worry about.
A woman has penned a letter to a money advice columnist asking whether her 69-year-old husband is right to worry that $3.7million is not enough to retire on (stock image)
She said the husband’s concerns perhaps came from being raised by ‘parents who went through hard times in the Great Depression’ or because of hardship early in life.
‘But clearly that no longer applies,’ Ms Holm said.
She told the reader her husband was being ‘way too cautious’ – as shown by a simple calculation to determine whether one can retire comfortably.
‘For every $100,000 you have saved [by 65], you can spend $100 a week. For example, if you’ve saved $300,000, you can spend $300 a week, and your savings should last as long as you do,’ Ms Holm explained, noting that is ‘top of NZ Super’.
Per this conservative calculation, the worried boomer couple have 40 lots of $100,000, giving them an eye-watering retirement budget of $4,000 per week.
Australia’s young people are facing a lifetime of financial pain and vanishing opportunities for home ownership (pictured: queue for a rental inspection in Melbourne)