Mistake #5: Disregarding the impact of taxes on retirement
Retirement isn’t tax-free, as much as we would like this to be true. Just because you’re no longer earning a paycheck with automatically deducted taxes, it doesn’t mean you don’t have to pay your contributions to the state.
Many retirees disregard the impact of taxes on retirement and find themselves in a financial dilemma. Pension payments, annuities, withdrawals from retirement accounts and even Roth 401K can all be subject to taxes in certain circumstances. So, do your homework properly and save yourself the shock of finding out on your own that you should have taken taxes into consideration when deciding to retire.
