When it comes to retirement savings, many older workers wonder whether it makes sense to keep contributing to retirement accounts in their late 60s — or to focus on other financial priorities.
On a recent episode of her "Women & Money" podcast, Suze Orman addressed this very situation when a 67-year-old listener earning $70,000 asked if she should open a Roth 403(b) through her employer.
The Listener's Dilemma
The listener, Lynetta, explained that her workplace recently began offering a Roth 403(b) option, though it does not provide an employer match. She also noted that the financial advisor tied to her workplace plan charged a 1% management fee and was not receptive to her preference for investing in stocks or ETFs.
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Faced with these concerns, she asked Orman whether she should move forward with the Roth 403(b), stick with her current strategy of buying certificates of deposit, or consider another option.
Why Orman Said No to the Roth 403(b)
While Roth accounts can be powerful retirement tools, Orman advised against the Roth 403(b) in this case. Her reasoning came down to two main factors:
- No employer match. Without a company contribution, there is less benefit to using a workplace retirement account. Instead, Orman suggested a Roth IRA as a more flexible alternative where the individual controls investment choices and fees.
- Mortgage debt. More importantly, Orman recommended that at 67, Lynetta's top priority should be paying down her mortgage. "Your largest expense happens to be your mortgage on your home," Orman said. "You're far better off getting rid of the mortgage on your home than saving money in a retirement account to pay the mortgage payment."
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other words, eliminating a major fixed expense in retirement can create the same financial security people often hope to achieve by saving more in tax-advantaged accounts.
The Bigger Lesson for Retirees
Orman's advice highlights a broader question many nearing retirement face: Should you keep contributing to retirement accounts late in life, or focus on reducing expenses?
For those in their 60s, the decision often depends on several factors:
- Whether an employer match is available.
- How much control you have over investment choices and fees.
- Outstanding debt, particularly large obligations like a mortgage.
- How close you are to retiring and drawing down savings.
By paying off a mortgage, retirees may lower their monthly expenses significantly, making it easier to live on existing income streams such as Social Security, pensions, or required minimum distributions.
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Bottom Line
In this case, Orman's advice was clear: skip the Roth 403(b) and direct extra funds toward the mortgage instead. While every retirement situation is unique, her response highlights the importance of weighing debt reduction alongside traditional saving and investing strategies.
For those considering similar decisions, it may help to run the numbers with a financial professional to see whether putting money toward retirement accounts — or knocking down debt — offers the bigger long-term payoff.
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