It’s tax time. Many retirees assume that their tax exposure will go down once they leave the working world. After all, they’ll no longer have income from a job. Even without a job, though, many retirees still face tax exposure. Many common sources of retirement income, such as Social Security, pensions and qualified account distributions, are taxable.
If you are recently retired or approaching retirement and haven’t budgeted for taxes, you could be in for a surprise. Your tax exposure could reduce your discretionary income and limit your ability to live the retirement of your dreams.