$1.8mm Today. Retire at 66? These Changes Made It Possible

Learn why choosing the right titling strategy—such as joint tenancy or TOD accounts—can simplify estate planning and help your assets avoid probate.

When it comes to retirement planning, numbers only tell part of the story. Just as important are your goals—what you want your money to do for you. In this real-life retirement plan case study, we walk through how one couple used personalized financial planning to make key adjustments that greatly improved their probability of retiring on time and living the lifestyle they envisioned.

A Real-Life Retirement Plan Case Study

Meet “Henry and Matty,” a married couple in their early-to-mid 60s with $1.8 million in savings. Like many pre-retirees, they had big plans—and a few competing priorities. Their story highlights the importance of aligning your finances with your personal values and preferences.

Understanding the Couple’s Retirement Goals

Henry (age 62) and Matty (age 65) came into their planning meeting with a well-rounded vision for retirement. Their goals included:

Retiring at age 66 (for both spouses)

Spending $150,000 per year after taxes

Traveling annually with a $25,000 budget

Purchasing a $400,000 vacation home

Leaving a $500,000 estate to their children

It was a comprehensive wish list—but the couple was open to prioritizing and refining their goals to make retirement feasible and sustainable.

Income Planning: Social Security, Pensions, and Survivor Benefits

Social Security was an important part of their plan. Henry, the higher earner, intended to delay filing until age 70 to receive maximum benefits. Matty would file earlier and receive her benefit based on her own earnings history, eventually switching to a spousal benefit once Henry claimed.

This approach ensured steady income and offered survivor protection—if Henry passed away first, Matty would receive his full benefit, preserving financial stability through her later years.

Henry also had a $9,000 annual pension with a 100% survivor benefit. Though not indexed for inflation, the survivor provision added long-term security for Matty, making this pension an important foundational asset.

Savings and Investment Contributions

The couple had multiple savings sources:

Henry’s 401(k) with $800,000 and annual contributions totaling $44,300 (including employer match)

A joint taxable investment account with $750,000 and additional contributions of $75,000 annually

Together, these contributions meant they were adding $119,300 to their savings each year—positioning them to exceed $2.1 million in savings within a few years, even without investment growth.

Real Estate and Home Sale Proceeds

Henry and Matty owned two homes—one in Georgia and another in Florida. Upon retirement, they planned to sell their Georgia home for $930,000. Thanks to the IRS’s primary residence capital gains exemption ($500,000 for married couples), they would owe no capital gains tax on the sale, netting approximately $874,000 after selling expenses.

These proceeds would become an important source of retirement funding.

The Original Financial Plan: A 50% Probability of Success

Despite their strong savings habits, the couple’s initial plan only had a 50% chance of long-term success, according to a Monte Carlo simulation. Their projected expenses—including the vacation home purchase—were simply too high to sustain with their assets and income streams.

Something had to change.

Strategic Adjustments Based on Personal Priorities

Rather than compromise on everything, Henry and Matty reviewed their priorities. What really mattered?

The vacation home: Nice to have, but not essential

Retirement timing: Henry was willing to delay retirement by one year

Annual spending and travel: Non-negotiables

By removing the $400,000 vacation home and adjusting Henry’s retirement age to 67, the couple significantly improved their retirement outlook. These minor tweaks made a major difference.

A New Plan with 81% Probability of Success

With those changes, the revised Monte Carlo simulation gave them an 81% probability of reaching their retirement goals. They were now in the “confidence zone”—a healthy balance between enjoying life today and sustaining financial independence for the future.

Final Thoughts

This case demonstrates how small, thoughtful decisions—rooted in values and guided by a clear plan—can lead to a more confident and comfortable retirement.

If you’d like to understand how your goals align with your current financial plan, Paces Ferry Wealth Advisors is here to help. Contact us today to explore what’s possible and craft a strategy that fits your future.

Paces Ferry Wealth Advisors, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.

Zachary Morris, CFP®

Having traveled to over 35 countries, Zach is a believer in Ralph Waldo Emerson’s statement that Life is about the journey, not the destination. Being a CERTIFIED FINANCIAL PLANNER™ provides Zach the opportunity to help clients define and realize their journey, and co-founding Paces Ferry Wealth Advisors, an independent firm, allows the freedom to define the client experience along the way.