Pensions

While pensions seem to be growing out of style, we mustn’t forget that when you receive these funds, the full amount of your pension would be taxable. If you made no after-tax contributions when payments (from both government and private pensions) will be taxable at your usual income rate.

Most seniors won’t even have to worry about pensions though, as more and more corporations chose to go the way of 401(k) accounts instead. Still, for the small handful of soon-to-be retirees that still rely on this source of income, we think it’s important to mention on our list.