By: Michael Treece

Treece Inc.

Published: May 1, 2025

Introduction: A Reality Check on Retirement Expectations

Millions of Americans imagine retirement as a time of freedom, travel, and enjoying the fruits of decades of work. But the reality many face is far different: outliving their savings, working longer than planned, or compromising their lifestyle. This article dives deep into the widening gap between what people expect in retirement and what they’re actually on track to experience then lays out clear, practical steps to pivot while there’s still time.

Chapter 1: Why Most Retirement Dreams Are Built on Outdated Assumptions

Retirement planning used to be simple: work 30 years, collect a pension, rely on Social Security. Today, that model is gone.

Most Americans no longer have pensions. Social Security may be reduced by the time many retire.401(k)s and IRAs are DIY and subject to market risk. What people expect and what they’ve actually prepared for are often miles apart.

Chapter 2: The Silent Impact of Inflation

$1 million used to be enough. But with inflation averaging 3–7% annually in key sectors (healthcare, housing, food), retirees need far more than they think. A retiree spending $5,000/month today could need over $8,000/month in 15 years. Inflation erodes fixed income power year after year. If your income doesn’t grow, your lifestyle will shrink.

Chapter 3: Healthcare and Long Term Care The Hidden Budget Busters

A 65 year old couple today may spend over $350,000 on healthcare alone in retirement. Medicare doesn’t cover everything. Long term care costs can exceed $90,000/year. One health event can wipe out decades of savings most plans ignore this we won’t.

Chapter 4: Why Working Longer Isn’t a Strategy

Many plan to “just work longer” if needed. But: Over 50% of retirees leave the workforce earlier than planned due to illness, layoffs, or caregiving responsibilities. Age discrimination and health issues reduce options. More work is not a financial plan it’s a gamble.

Chapter 5: How the Market Can Wreck Your Timing

If your retirement is tied to the stock market, you’re at the mercy of volatility. A crash in the first 5 years of retirement can permanently damage your portfolio, “average” returns don’t matter sequence of returns does. You may be forced to sell low to generate income, a safer income foundation is critical.

Chapter 6: Building a Strategy That Works in the Real World

You need a plan that includes: Guaranteed income sources (like annuities) tax free growth (via IULs and Roth IRAs) inflation protection, risk mitigation this is the foundation of a durable retirement.

Chapter 7: Introducing the Pivot Plan

Treece Inc. will offer solutions helping clients create a customized, "Pivot Plan" designed to bridge the gap between expectations and reality. Key components, analyze current income gaps, model future spending needs, layer guaranteed income with flexible tax strategies and Protect against healthcare or long term care costs.

Chapter 8: Real Case Study The Turner Family

Jim and Denise Turner, age 59 and 57, thought their $600,000 in savings would carry them comfortably. After inflation projections, healthcare modeling, and income gap analysis, they discovered a $180,000 shortfall. We created a plan that,

rolled over a portion into a fixed indexed annuity, shifted assets into an IUL for tax free growth and added a long term care rider to their life plan. Now they’re projected to enjoy a lifetime income that keeps pace with inflation and peace of mind.

Chapter 9: The Cost of Waiting

Every year you delay rebalancing your retirement strategy: Your tax exposure increases, you lose compounding time and your options narrow, waiting is the enemy of financial freedom.

Chapter 10: Reclaim Your Retirement Vision

You deserve the retirement you’ve worked for, it won’t happen by default. It requires a plan a pivot. Treece Inc. helps you take control, eliminate uncertainty, design a future that’s sustainable and secure. Why wait until it’s too late, book your Pivot Planning session today.