President Joe Biden stepped down, reluctantly, at age 81 — how to know when it’s time for you to retire too
President Joe Biden isn’t always the most relatable man, but you may have seen yourself in his recent resignation as the Democratic Party’s presidential candidate. It might get you thinking: when should I step back from my job?
After months of pressure to step down due to his age, the president finally gave in to his party’s demand in late July.
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“It has been the greatest honor of my life to serve you as President,” Biden wrote in a statement posted on social media. “And while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down.”
His resignation has been widely applauded. The New York Times Editorial Board called it a “courageous choice.”
If you find yourself in a similar situation to President Biden’s, here are some questions to consider in deciding whether to stay or go from your current job.
Do you have enough money?
President Biden isn’t exactly hurting for cash. Even leaving aside his real estate holdings and investments, his Commander-in-Chief's take-home salary was $400,000 last year, according to The Hill.
The president may not be thinking about how he’ll fund his retirement, but you probably are. In Fidelity’s 2024 State of Retirement Planning survey, two-thirds of respondents have delayed retirement because they can’t afford to quit their jobs.
The 3.2% cost-of-living increase for this year’s Social Security benefits isn’t enough for most seniors to cover the cost of living.
To figure out if you have enough money to retire, you can use a retirement calculator. Moneywise used the T. Rowe Price Investment Services retirement calculator to analyze a few scenarios to see what retirement looks like.
For instance, if you’re 65 and have a million dollars set aside for retirement, the retirement calculator says you have an 84% chance of having enough money to fund your retirement. This is assuming that you get around $1,500 in Social Security to supplement your savings and that you’re only spending $57,818 per year.
But by waiting until you’re 70 to retire, you have a 96% likelihood of being able to fund your retirement. This is because your Social Security benefits rise to $1,960 per month. The more you delay taking Social Security, the more money you get.
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Do you have enough to do?
Biden hasn’t mentioned his next steps yet. But it’s crucial that you start planning for retirement while you’re still working, according to founder of the Retirement Coaches Association (RCA), Robert Laura.
The RCA 2023 survey discovered that many retirees feel lonely, bored and unfulfilled. Their job gave them a reason to wake up every morning. Without it, they feel lost.
“I would say probably 50% — if not 60% — of people fail at retirement,” Laura told Moneywise in November 2023. “Most people waffle around for a year or two before they figure it out and end up going back to work.”
Laura recommended that you start planning what you want to do in your retirement before you stop working. What did you love to do in your youth? What dreams got pushed aside as you focused on your job?
“That's probably the biggest thing we try to teach people is: you're going to lose more than you gain and you need a way to replace these things,” Laura says. “Because if you don't, you're going to feel out of sorts.”
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.