How Much Taxes Will Retirees Owe on Their Retirement Income?

TitleHow Much Taxes Will Retirees Owe on Their Retirement Income?
Publication TypeConference Paper
Year of Publication2020
AuthorsChen, A, Munnell, AH
Conference NameRetirement and Disability Research Consortium 22nd Annual Meeting
PublisherRetirement and Disability Research Consortium
Conference LocationVirtual
KeywordsSocial Security Benefits, Tax burden

To evaluate their retirement resources, households approaching retirement will examine
their Social Security statements, defined benefit pensions (DBs), defined contribution balances
(DC), and other financial assets. However, many households may forget that not all of these
resources belong to them; they will need to pay some portion to federal and state government in
taxes. This project aims to shed light on the tax burden retirees face by estimating lifetime taxes
for a group of recently retired households. However, due to delays in authorizing TAXSIM for
use on restricted data, the results presented in this version of the paper are based on self-reported
data and do not include state tax liabilities.

Citation Key11005