Don’t Assume Your Taxes Will Be Lower in Retirement

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Franklin D. Roosevelt once said, “Taxes are paid in the sweat of every man who labors.” But, I have a not-so-well-kept-secret. You’re also going to have to pay taxes in retirement.

Some of you may be floored upon hearing this. I mean you’re no longer drawing a salary. So, that means that no more payroll and FICA taxes, right?

Don’t Assume Your Taxes Will Be Lower in Retirement

There’s some truth to that. But, even in retirement, you’ll be earning an income. Most likely, this will be in the form of distributions from retirement accounts and Social Security benefits. As such, you still have to pay taxes in your post-work life.