You may not realize it, but Uncle Sam becomes your partner in your retirement.
Back in 2010, Lincoln Financial Group sponsored a survey of affluent retirees that shows how big of an effect taxes may have. The survey gathered data from people ages 62 through 75 with annual household incomes greater than $100,000.
Of all retirement spending areas, the study found that federal income taxes were the retirees' largest expense. "They are greater than many individuals planned for prior to retirement—and a growing source of concern," the survey reported.
If you don’t want everyone’s least favorite uncle to be the "majority owner" of your retirement income, it’s important to take steps to maximize the tax efficiency of your retirement income plan.
