Rather than being a time of financial stress during retirement, retirement should be a time of freedom and independence.
Often, retirement dreams involve taking long vacations, spending more time with family, and pursuing hobbies. What don’t the dreams take into account—what don’t they see? Taxes.
Especially when retirees begin drawing Social Security, pensions, and retirement funds, taxes can become a significant expense. The good news is that you don’t have to accept a high tax bill in retirement passively. If you plan smartly and understand how retirement income is taxed, you can legally reduce your tax burden and keep more of your hard-earned income.
