Scott Pape said he had seen plenty of people work themselves into an early grave chasing money they already had. (Source: Barefoot Investor/AAP)
An Aussie worker has been given a “reality check” after questioning whether he should quit his $180,000 a year job for one paying half the amount. Receiving a competitive salary is top of mind for many Aussie workers right now, but an expert has warned getting a bigger pay packet in exchange for being burnt out wasn’t always worth it.
The Barefoot Investor Scott Pape has urged an Aussie worker not to work himself into an “early grave chasing money” he already has. The 54-year-old wrote to the finance expert for help and said he was “completely burnt out” and considering quitting his job.
“I’m in ‘procrastination city’ every day, faking it to my boss, and hate what I do despite the good pay,” he said.
“I’ve been offered my dream job helping people, but the salary is half my current income ($90k vs $180k).”
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The man said his family was in a “strong financial shape” and had paid off their home, had $100,000 in their emergency savings bucket, $100,000 in shares and $600,000 in superannuation.
But he said he was worried they wouldn’t be able to cut their spending in half to match his new income.
“At 54, I’m starting to wonder what the hell I’m doing. Do I ‘toughen up, princess’ and persist with the high-paying job I hate, or risk a poorer retirement for a more satisfying last decade of work?” he said.
Pape said the man had “won the money game” with his home paid off, no debts, a solid savings and superannuation all with “10 years left on the clock”.
“Here’s the real question: why are you still playing with your head down in the scrum?” Pape said.
“Burnout is just the bloke’s word for depression. Hating your job affects your health, your relationships, and whether you even make it to retirement in one piece – let alone enjoy it.”
Pape recommended the man “test-drive” living on the new $90,000 salary for the next three months and see if it was sustainable or brought up unexpected stresses.
He then recommended the man model how the salary cut would impact his retirement and said his super fund should be able to help him with his.
Pape noted the impact on the man’s retirement may be “less dramatic” than he thinks.
Pape said burn out impacted your health, relationships and whether you even made it to retirement. (Source: AAP)
According to the latest ATO statistics, the average man aged 50 to 54 has $254,071 in their super fund, while the average woman has $190,175.
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The Association of Superannuation Funds of Australia (ASFA) estimates that to retire comfortably, a single homeowner would need $595,000 and a couple would need $690,000.
This would give them $52,383 and $73,875 annually with a mix of super and a part-age pension.
ASFA’s Super Detective tool has estimated that a 54-year-old today would need an average balance of $361,000 to achieve said comfortable retirement.
Finally, Pape said the man could also consider taking the middle path.
“Could you negotiate part-time hours at your current job while transitioning? Or take the new job but do some consulting on the side?” he said.
Pape said the man had a decade left of work and urged him to “make it count”.
While financial goals are top of mind for many workers, recent research from Indeed found mental health and well-being remained a priority.
It found that the number one concern for 20 per cent of employees was dealing with job stress and burnout, with 21 per cent of workers saying they would be open to changing jobs or relocating in response to these concerns.
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