Don't Let These Hidden Costs Destroy Your Retirement
Many people work all their lives in the hopes of enjoying retirement. If you're nearing your golden years, you no doubt have lots to look forward to. But if you're not careful, a few sneaky expenses could wreak havoc on your retirement budget. Here are a few hidden costs to be aware of.
Many seniors are shocked to learn that much of their income is, in fact, taxable. If you have a traditional retirement savings plan, whether it's an IRA or a 401(k), the withdrawals you take from that account will be taxed. The same holds true much of the time for pension payments (though there are some exceptions).
Furthermore, unless Social Security is your sole source of retirement income, there's a good chance you'll pay taxes on a portion of your benefits at the federal level. And if you live in one the 13 states that taxes benefits, you'll need to worry about losing a chunk of that income, too.
Source Fool.com
