I’m a 70-Year-Old Retiree With $90K in an Annuity. Am I Doomed? Suze Orman Responds
Written by
Laura Bogart
Edited by
Kristen Mae
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Retirement is often portrayed as the golden years of life. From stock photos of laughing, silver-haired couples riding bicycles to social media posts of that woman from your book club on her grand European vacation, we’re bombarded with the idea that adventure is waiting the moment you clock out for the last time.
But adventure costs money. So do the everyday expenses of living without a steady paycheck and simply paying your bills. And if you feel behind on even those basics, you’re hardly alone.
You might see yourself in Leslie, a listener of Suze Orman’s “Women and Money” podcast. Leslie reached out to Orman feeling “doomed” about her retirement: At 70 years old, she relies on alimony to pay her rent, and she’ll lose that income in four years. She has an annuity, but it’s only $90,000, and her IRA holds just $160,000. To make matters worse, she has $9,000 in credit card debt.
She admitted feeling disappointed in herself before seeking Orman’s advice. While Orman’s guidance was tailored to Leslie, there are also valuable lessons for anyone worried about the state of their retirement.
Shake Off the “Doom”
Orman started with some tough love: If Leslie feels doomed, then she is doomed. She doesn’t have time to give in to doubt; instead, she needs to take a clear-eyed view of her situation.
“What matters is that you believe in who you are, you believe you have the ability to change your situation and that you don’t have to be dependent on the alimony to pay your rent,” Orman said.
By calming down and not giving in to the panic of “being behind,” Leslie — and anyone in her situation — can be more objective about her financial reality. Which, as Orman reminded her, is technically not as bad as she thinks. She encouraged Leslie not to think of $90,000 as a small amount, and not to get hung up on her IRA’s initial number.
“Your IRA has only — let me underline the word only — $160,000 in it, which is $250,000, girlfriend, that could easily provide you with $10,000 a year or more,” Orman said. “Maybe we take the annuity and you annuitize it so it gives you more income at your age.”
Orman’s advice highlighted Leslie’s strengths and pointed her toward solutions that could help her wean off her alimony. While your situation may not be exactly like Leslie’s, the takeaway is the same: burying your head in the sand about your finances, especially your retirement readiness, does you no good.
Look for Ways To Downsize
As Orman persuaded Leslie that she wasn’t in quite as deep a hole as she imagined, the personal financial expert also suggested that being flexible about how she chose to live could significantly cut expenses.
Orman invited her to consider core questions: Could she move to a less expensive place? What else might she be willing to part with to make do with her current income and pay down some debt? If she could find an extra $2,000 a month to supplement her Social Security, she’d be in better shape.
Whether you’re close to retirement or your golden years are still far off on the horizon, taking a magnifying glass to your expenses is a solid strategy. Look for areas where you might be overspending and where you can afford to downsize — even in everyday choices, like where you shop. Sure, Whole Foods has an impressive salad bar, but you can find everything you need to stock your fridge and pantry at a better price from discount grocers like Aldi.
Believe in Your Power To Change Your Life and Finances
Orman’s parting words to Leslie were a reminder of the power and agency she has over her own situation: “You are not doomed unless you continue to think that you are.” She told KT, her co-host, “Don’t tell me that there isn’t something Leslie can do to make it work, but it also starts with how she feels about who she is.”
Remember, even if you feel disappointed with your financial circumstances, you always have options. The sky won’t fall if you build a scaffold to help hold it up. Get proactive — seek out a financial advisor or give yourself a financial education by following experts like Orman.
When Leslie reached out to Suze Orman’s “Women and Money” podcast for help with a seemingly dire situation — at 70, with only $90,000 in an annuity, $160,000 in an IRA, and $9,000 in credit card debt — she found some tough yet compassionate advice. Orman encouraged her to shake off the doom, step into her financial power, and explore ways to downsize. It’s advice worth considering no matter where you are in your financial journey.
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