You've done everything right. You maximized Social Security. You figured out your withdrawal strategy. You're enjoying your 60s.
But here's what most people miss: retirement isn't one long chapter. It's three completely different acts—and each one requires its own game plan.
Think of it like the NBA season. The regular season strategy doesn't work in the playoffs. And the Finals? That's a whole different animal. You need adjustments at every stage, or you get caught flat-footed when the game changes.
I've worked with over 500 families navigating retirement, and the ones who thrive decades later? They planned for the shifts nobody talks about. The ones who struggle? They built a plan for their 60s and assumed nothing would change.
Today, I'm walking you through the three major shifts that happen across retirement—and what you can do right now to prepare for them.
Phase One Problem: You're Spending Too Little in Your 60s
Here's something that might surprise you: retirees in their 70s and 80s spend significantly less than they did in their 60s.
Travel slows down. The bucket list gets shorter. Energy levels shift.
Sounds like good news, right? More money left over for the kids.
But here's what I see all the time: regret.
People look back and realize they could have taken that extra trip to Italy. They could have upgraded to business class. They could have said yes to more memory-making moments with their grandkids.
But they didn't—because they were planning for a 30-year retirement where spending stayed flat forever.
Here's the reality:
Your kids are likely in their prime earning years by your 70s
They don't need your financial support anymore
You have more permission to spend than you think
Your action step:
Run a projection that models decreasing spending over time. Build in a 20–30% reduction in your 70s and another drop in your 80s.
When you see that your money will last—even with higher spending early on—it gives you the confidence to actually live your retirement, not just survive it.
Phase Two Problem: Long-Term Care Will Blindside Your Budget
Let's talk about the elephant in the room.
Most people don't have long-term care insurance. But here's the reality: at some point in your 70s or 80s, there's a real chance you or your spouse will need care.
A nursing home can cost $8,000 to $12,000 per month. That's $100,000 to $150,000 per year.
So what do you do without insurance?
The smartest families I work with use what I call the "LTC IRA"—one IRA designated specifically as a long-term care fund.
Why an IRA?
Because of a tax advantage most people don't know about. Medical expenses—including long-term care—that exceed 7.5% of your adjusted gross income can be deducted. When you pay for care using IRA withdrawals, you can cover a huge chunk with pre-tax dollars.
Real example:
I had a client whose father needed memory care costing $120,000 per year. My client's income was $150,000, making him eligible to deduct medical expenses above $11,250 (7.5% of his AGI).
He used his IRA to pay for the care and deducted $108,750 of expenses.
The result? Over $30,000 in tax savings that year alone.
If long-term care is a possibility—and statistically, it is—having a dedicated IRA for health expenses gives you flexibility and tax efficiency when you need it most.
Phase Three Problem: Losing a Spouse Destroys Your Tax Strategy
This one's tough to talk about, but critical.
At some point, one spouse will likely pass away before the other. And when that happens, the surviving spouse faces a brutal financial reality.
What changes:
You go from married filing jointly to single
Your tax brackets shrink dramatically
Your required minimum distributions stay nearly the same
But now you're paying tax on that money at much higher rates
Worse? If your income pushes above certain thresholds, you get hit with IRMAA—Medicare premium surcharges that can cost thousands per year. And you don't get better health coverage because of it.
Meet Linda and Tom:
Both 75, retired, living on $100,000 per year. Combined RMDs: $60,000 annually. As a married couple, they're in the 12% tax bracket. No IRMAA penalties.
Then Tom passes away.
Linda's RMD stays at $60,000. But as a single filer, that income pushes her into the 22% bracket faster and triggers IRMAA surcharges—an extra $2,500+ per year in Medicare premiums alone.
Most people don't see it coming.
The solution?
Plan for it years in advance with Roth conversions and capital gains harvesting while both spouses are alive.
When you're married filing jointly, you have much more room in the lower tax brackets. You can convert traditional IRA dollars to Roth without pushing into dangerous tax territory or triggering IRMAA.
Those Roth dollars? They don't count as income later. No RMDs. No tax. No IRMAA impact.
By doing strategic conversions in your 60s and early 70s, you reduce the IRA balances that will create tax problems for the surviving spouse later.
You're building a financial life raft before the storm hits.
The Bottom Line
Retirement isn't one static phase. It's three evolving acts, each with different challenges:
Act One (60s): Don't underspend and create regret later. Model decreasing spending so you can live fully now.
Act Two (70s): Long-term care is expensive. A dedicated "LTC IRA" gives you tax advantages when you need care.
Act Three (80s): Losing a spouse changes everything. Plan ahead with Roth conversions to avoid brutal tax hikes and IRMAA penalties.
The families who thrive across all three decades? They plan for change, not just the status quo.
You've worked hard for decades to build this life. Don't let a lack of planning in your 60s create financial stress or regret in your 70s and 80s.
The time to prepare isn't when a crisis shows up at your door. It's right now.
Education only, not advice. Consult your professional(s).