The Big Beautiful Bill:
What Retirees Really Need to Know

Congress just passed what Josh affectionately calls “The Big Beautiful Bill,” and while that name might sound fun and lighthearted, the implications for your retirement are serious—in a good way. On this episode of The Own Your Retirement Show, Josh Bretl and Mark Elliott unpack the sweeping tax changes and what they mean for current and future retirees.

Why This New Tax Law Matters (A Lot)

For years, retirees have lived with the uncertainty of what would happen after the 2017 Tax Cuts and Jobs Act expired. The good news? The new bill locks in many of those lower tax brackets. While they’re “permanent,” as Mark rightly notes, nothing in politics lasts forever. But for now, the tax landscape is more predictable, and that’s a huge win.

Key Changes That Could Affect You

• Standard Deduction Increases: If you’re over 65, you now get an additional $6,000. That’s on top of the already higher standard deduction for seniors.
• SALT Cap Lifted: The State and Local Tax (SALT) deduction cap jumps from $10,000 to $40,000—big news for Illinois residents and anyone with high property taxes.
• Tax on Tips and Overtime: These are now exempt (for now), adding more income flexibility for working retirees.
• Charitable Giving Perks: Even non-itemizers can now deduct $1,000 (or $2,000 for couples) in charitable donations “above the line.”

Bottom line? The bill presents a major opportunity—but only if you plan smart. That’s where Josh’s tax-planning software and side-by-side comparisons really shine. Most clients can now reduce or even eliminate taxes through better structuring.

Rethinking Retirement Spending

Josh and Mark dive into one of the biggest misconceptions in retirement planning: that you’ll automatically spend less in retirement. That’s not always true. Retirees tend to spend more early on (go-go years), level off (slow-go), and eventually face healthcare-driven spikes in later life (no-go years).

Having a “spending plan” tailored to your lifestyle and phases of retirement helps avoid two costly extremes: overspending early and outliving your savings—or underspending and missing out on the fun you worked so hard for.

Why the 4% Rule Doesn’t Cut It

Josh doesn’t mince words: “I hate the 4% rule.” In today’s world, with low tax rates and fluctuating investment returns, retirees need customized withdrawal strategies. Some may safely take out 6–7%; others might need to stick closer to 2–3%. It all depends on your income sources, risk tolerance, and goals.

Healthcare: The Cost You Didn’t See Coming

Even with Medicare, Fidelity estimates that a healthy 65-year-old couple will spend $315,000–$320,000 on medical expenses—not including long-term care. That’s a retirement budget killer if you’re not prepared.

Josh emphasizes the importance of planning not just for fun stuff, but for must-haves. Whether that means setting aside funds, exploring long-term care insurance, or carving out assets to support a surviving spouse, having a plan is critical.

5 Tips for a Happier Retirement

• Focus on your health: Don’t trade your well-being for wealth. Staying active and healthy helps you enjoy the lifestyle you saved for.
• Build new social networks: Many retirees lose the daily social interaction they had at work. Staying connected is key to long-term happiness.
• Discuss plans with family: Whether it’s healthcare wishes or travel plans, your family needs to know your intentions.
• Structure your days: Retirement isn’t just one long weekend. Without structure, days can feel empty. Plan your time with intention.
• Find your new purpose: Retire “to” something, not just “from” something. Whether it’s hobbies, volunteering, or part-time work, purpose fuels happiness.

How FSR Wealth Strategies Can Help

The Own Your Retirement Planning Process starts with your income—what’s coming in, and how you want to spend it. From there, Josh and the team tackle investment allocation, tax strategies (including how to leverage the new bill), healthcare, and legacy planning.

This episode isn’t just about taxes or planning—it’s about helping you live fully and confidently. You’ve worked too hard to live with regret or fear. Let us show you how to turn this “big beautiful bill” into big beautiful opportunities.

📞 Ready to talk? Call (630) 478-9599 to schedule your complimentary 15-minute call with an FSR advisor.