How Taxes Affect Retirement Savings (and What to Do About It)

When people think about retirement planning, they tend to focus on saving and investing so that they have a nice nest egg when they leave work. And that’s a good place to start. But it is also important to pay attention to how taxes affect your retirement savings and any other sources of income you will tap into once you reach retirement.

Unfortunately, the tax does not disappear when you stop getting a paycheck. Even if you are no longer working, you will still receive income in the form of retirement account distributions, Social Security benefits and possibly pension payments. And if you underestimate the tax about the district can take – yes, even if you are in retirement – you can end up losing a significant part of your hard earned money.

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