We're 60 With $2.2M Saved - Here's Our Plan to Spend More NOW (Not Later)

Most retirement plans assume you will spend roughly the same amount every year for 20 or 30 years. Real retirees rarely spend that way. Research on retirement spending patterns points to something closer to a curve: spending is often highest in the early, active years of retirement, dips through the middle years, and can rise again later when healthcare costs climb.

For a 60-year-old couple with $2.2 million saved, that pattern raises a practical question: does it make more sense to spend more now, while you are healthy and able to travel and enjoy your time, and less later, rather than spreading spending evenly across a retirement that could last three decades? The answer usually comes down to tax planning as much as it does lifestyle.

Here is how front-loading your spending can work with $2.2 million, and the tax pieces that need to be in place to support it.

Key takeaways:

• Retirement spending often follows a curve rather than a flat line, with many retirees spending more in their active early years.

• Front-loading spending with $2.2 million can work when it is paired with a deliberate withdrawal and tax plan, not spent from whichever account is easiest to tap.

• The years before Social Security and required minimum distributions begin are often your best window for Roth conversions.

• Skipping conversions now can mean larger required minimum distributions later, which can raise your tax bracket, trigger Medicare IRMAA surcharges, and increase how much of your Social Security benefit is taxed.

• Households with inherited retirement accounts also need to account for the SECURE Act's 10-year distribution rule when timing income.

Why Go-Go Years Spending Can Make Sense at 60

The early years of retirement, often called the go-go years, are typically when retirees are healthiest, most mobile, and most interested in travel, hobbies, and time with family. Spending more deliberately during this window, rather than saving the bulk of your $2.2 million for a later stage when your ability or interest in spending it may be lower, is a reasonable strategy for many households. The tradeoff is that spending more early means your remaining balance needs to keep working harder, so the accounts you draw from and the order you draw from them matter more than the total dollar amount.

This is not simply spending more everywhere. It means building a withdrawal plan that funds today's lifestyle from the right mix of taxable, tax-deferred, and Roth accounts, while leaving room to adjust if markets move against you in these early years.

Pairing Higher Spending Now with Roth Conversions

The years between retiring and claiming Social Security, and before required minimum distributions begin, are often the lowest-income years a household will see in retirement. That combination of lower reported income and more time before RMDs makes this window one of the better opportunities to convert a deliberate amount of your pretax 401(k) or IRA balance to a Roth IRA each year. Converting now, while you are also spending more, uses the same low-income years to accomplish two goals at once: funding today's lifestyle and reducing tomorrow's tax bill.

The amount to convert each year should be sized to fill your current tax bracket without spilling into the next one, and coordinated with how much you are withdrawing to cover spending. A multi-year plan built around this window, rather than a single large conversion, tends to produce a better outcome for a $2.2 million household.

Watching for RMDs, IRMAA, and Social Security Taxation Later

Required minimum distributions begin at 73 for those born between 1951 and 1959, and at 75 for those born in 1960 or later. A larger pretax balance at that point generally means larger required distributions, which land as taxable income you did not choose to take. That additional income can push you into a higher bracket, and it can also trigger IRMAA surcharges on Medicare Part B and Part D premiums if your income crosses certain thresholds.

The same additional income can increase how much of your Social Security benefit is subject to tax. Up to 85% of your benefit can be taxable once your combined income passes certain levels, so the RMDs and conversions you plan for in your 60s directly shape how much of your Social Security check you actually keep once you start claiming.

Fitting Inherited Accounts and Recent Tax Law Changes Into the Picture

If you or your spouse has inherited a retirement account from someone other than a spouse, the SECURE Act's 10-year rule requires the account to be fully distributed within 10 years of the original owner's death. Timing those distributions around your own income, spending, and conversion plan matters, since an inherited account withdrawal in a high-income year can push you into a higher bracket or a Medicare surcharge you would otherwise avoid.

The One Big Beautiful Bill Act also changed the tax landscape for retirees, including a temporary additional deduction for those 65 and older that phases out at higher income levels. As you move from your 60s into your mid-60s, that deduction becomes another factor to weigh against your spending and conversion plan each year. None of these pieces work well in isolation, they need to be coordinated as part of one plan, which is exactly what we build with clients in their Retire Ready Roadmap™.

Is it really okay to spend more in the early years of retirement?

For many households, yes, especially when the extra spending is paired with a deliberate withdrawal plan rather than simply drawing down whatever account is most convenient. The right amount depends on your total savings, expected longevity, and how flexible you can be if markets underperform.

What are the go-go years in retirement?

They are typically the first years after retiring, when most retirees are healthiest and most active, and when travel, hobbies, and family spending tend to be highest before naturally tapering in later years.

Why do Roth conversions matter if we are already spending more now?

The years before Social Security and RMDs begin are often your lowest-income years, which makes them an efficient time to convert pretax savings to a Roth IRA at a manageable tax rate, even while you are also withdrawing money to fund spending.

What is the SECURE Act's 10-year rule?

It requires most non-spouse beneficiaries of an inherited IRA or 401(k) to fully distribute the account within 10 years of the original owner's death, which makes timing those distributions an important part of a broader tax plan.

How do RMDs affect Social Security taxes and Medicare premiums?

Required minimum distributions add to your taxable income, which can push more of your Social Security benefit into taxable territory and can trigger IRMAA surcharges on your Medicare premiums if your income crosses certain thresholds.