When you’re doing your retirement planning, it’s easy to ignore one vital topic: How much taxes will I owe on my retirement income? Frankly, it’s a hornet’s nest.
But the topic of taxes and your retirement income is vitally important for your retirement planning.
Anqi Chen and Alicia H. Munnell of the Center for Retirement Research at Boston College analyzed data from the federal Health and Retirement Study, on 3,419 recently retired people where at least one earner claimed Social Security benefits from 2010-2018. Their bottom line: When people evaluate their retirement resources, they may forget that a portion will be taxed.