Don’t Overlook How Taxes Erode Retirement Income, Report Says

A report from the Center for Retirement Research cautions against overlooking the tax impact of retirement income, saying that “As households approaching retirement examine the resources they will have available, they may forget that not all these resources belong to them.”

“Understanding the size of this liability can help individuals assess their own retirement security and also inform research on trends in wealth and on how wealth affects retirement decisions,” it says.

The report broke households in a retiree database into five equal segments, or quintiles. It said that for households in the first four—with annual income from Social Security and […]

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