Article 1
The issue of income tax planning has long been a problem for many Americans and more so for retirees. After working for a major part of their lives, prospective retirees would like to ensure that they get the most out of every dollar they saved for their retirement. In her article “Retirement Relocation: State Taxes Matter More Than You Might Think” Rebecca Barsch observes that states with minimal or no income taxes are proving to be popular destinations for many retirees. One of the cases highlighted in the article is the high migration rate to Florida which has long been a popular destination for retirees. The article highlights the high growth rates of many metropolitan areas mainly due to retiree migration. …show more content…
There are several states in the US that do not currently impose income taxes. This means that retirement funds regardless to their source of origin will not be subject to any state income tax. Taxes can be a big burden especially when effective planning is not carried out. Choosing the right location to retire is vital in retirement planning especially when state taxes are factored in. The combined tax toll on a potential couple may be north of $7500 annually.
How Geographical Location and Tax planning may impact …show more content…
Additionally, there has been an increase in their life expectancy after retirement. There has not been much research that has been carried out to investigate the social as well as the psychological consequences of retirement. In their article “Does Retirement Hurt Well-Being? Factors Influencing Self-Esteem and Depression among Retirees and Workers authors Elizabeth Mutran, Donald Reitzes and Maria Fenandez investigated various social and psychological issues relating to retirement such as self-esteem and depression. The research expectation was that wellbeing would not be negatively affected by retirement. Additionally, the well-being of retirees was not expected to be lower than that of workers. Study findings were indeed in line with the research expectation and supported Atchley’s ‘continuity theory that retirement has positive psycho-social consequences. According to then article, the positive consequences may be in part due to the fact that there is continuity between preretirement and post retirement.
Psycho-social wellbeing and Retirement
Retirement is an ongoing process. Continuity in retirement is based on the premise that that earlier self-esteem of workers also affects later self-esteem. The Identity hangover effect, which manifests itself in former workers trying to hold on to former roles is becoming less common today and worker-identity meaning have being