Question: I’m 57, with $1.8 million saved, and want to pivot to a low-stress job for the next decade. My wife says to keep cranking and retire at 62 instead. Who’s right?
Answer: Work culture in the U.S. is very different from that in other parts of the world. As Americans, we’re used to grinding away and taking little time off. And while some people thrive in a high-pressure environment, for others, it’s more stressful than it’s worth.
The Society for Human Resource Management reports that in a 2024 survey, 44% of Americans felt burned out at work. This echoes a 2023 survey by the American Psychological Association, which found that 31% of U.S. workers were experiencing emotional exhaustion and 23% wanted to quit their jobs.
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If you’re 57 years old with $1.8 million saved for retirement, you’re ahead of the game with respect to the typical person your age. The average 401(k) balance among Americans in their 50s is $213,900.
Granted, plenty of people do have assets for retirement outside of a 401(k). The point, however, is that $1.8 million at 57 is not a small amount of money. And it should give you the flexibility to ditch a demanding job in favor of one that comes with less stress for the remainder of your career.
But what if your wife doesn’t like that approach? She might think you should stick with the high-stress (and higher-paying) job for another five years and just retire at 62 altogether.
Though this alternative approach isn’t necessarily unreasonable, it could mean subjecting yourself to a miserable existence for another half-decade. So it’s important to come to a compromise that works for both of you.
Make sure the numbers work
With $1.8 million banked for retirement by 57, you may be in a position to stop contributing to your nest egg and simply leave it alone to grow. Even at a conservative 5% annual return, $1.8 million could grow to over $2.9 million in a 10-year period. At that point, you’re old enough to collect your Social Security benefits without a reduction.
Robert Cullen, FSCP, MBA, and member of the MDRT association of financial professionals, says that someone with $1.8 million at 57 is in a strong position to make a career shift to a lower-paying role in theory. But whether $1.8 million is enough depends on factors such as anticipated annual retirement spending, other income sources, health care costs, and inflation.
“Running the numbers with a financial adviser, or using a retirement planning tool, can give clarity on whether a lower-stress job — possibly with lower income — still keeps them on track,” Cullen says.
Make your spouse part of the decision and discussion
The career decisions you make don’t just impact you. They can also impact your spouse’s finances.
Phillip Battin, president and CEO at Ambassador Wealth Management, says that the decision to change jobs can be a stressful and emotional process, especially when a reduction in income is the likely outcome. So it’s important to address it as a team.
“If made in isolation and without consulting your spouse, … the decision could carry negative consequences for your relationship, your health, and your future,” he says.
Battin recommends having an honest conversation that addresses your wife's concerns — financial or otherwise. It may be that your current lifestyle is built around a certain income level, and your wife isn't ready to make changes just yet. She may also not realize what an emotional toll the job is taking on you.
Hear her concerns, Battin says, but make yours clear, too. And share your thoughts on how a job change might benefit your mental health, as well as your relationship.
"No amount of money will make up for a partner who is emotionally depleted, stressed, tired, angry, and potentially resentful," Battin says.
Cullen also says a situation like this isn’t necessarily all or nothing. It may be possible to find a lower-stress job that comes with a modest pay cut, but enough of a paycheck to support your near- and longer-term financial goals.
Additionally, Cullen says, it may be worth making an immediate change if you’re truly burned out, but setting a two-year timeline to reassess.
“There’s often a middle path that addresses both financial goals and lifestyle needs,” he insists.
It's good to have options
A situation like this is actually quite enviable. The typical 57-year-old who may be feeling burned out at work doesn’t have close to $2 million as a safety net to fall back on if a job change results in a notable reduction in salary. If anything, many people that age are trying to play catch-up with their retirement savings.
One thing you may want to emphasize is that while your wife’s suggestion to grind for five more years is sensible on the one hand, it subjects you to a prolonged period of stress that could have negative long-term health consequences. Put another way, you don’t want to keep pushing until age 62 and retire then only to wind up in poor health, unable to enjoy the retirement you’ve saved for.
A better bet may be to explore your options for pursuing a lower-stress job, but working together with your spouse to minimize the impact on your lifestyle and savings goals. That could mean cutting back on certain expenses, but not all.
Finally, if your wife is concerned about a drop in your household income, it may be possible for her to contribute more by pursuing a higher-paying job during the tail end of her career. There are different options you can explore together that may enable you to take care of your mental health while addressing your financial needs as a couple and avoiding conflict.
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