Single With A Pension? Don't Let Taxes Ruin Your Retirement

So the main thing that these people are worried about is that if single with a pension, there's a lot more concerns than maybe if you're married specifically.

And so one of the biggest concerns that we see is when it comes to taxes.

This is a big, big, big concern because when you are a single filer, you are going to have to pay more in taxes typically than a married filing joint.

And nearly double the amount is oftentimes what that can even look like.

And so if you think about it, that standard deduction, gets cut in half.

So the amount of money tax-free upfront is not gonna be as much if you're single.

But also in addition to that, you have to worry about the tax brackets.

And for most people here, they're in a 10, 12, 22, 24% bracket.

They sit in one of those brackets.

And so for those brackets, the single bracket is cut in half versus what it was with married filing jointly.

So that's where you're gonna have less standard deduction upfront and you're gonna be in the higher tax brackets quicker is ultimately that point.

And so we need to be very careful when we do our planning for this.

And that's why I mentioned at the beginning of the video, if you're married filing jointly right now watching this, maybe you snuck your way through and you wanted to learn more about what this could look like, then you need to understand that you want to utilize those married filing jointly rates while you have them before you are single.

And now I'm not here to give anyone relationship advice or advise anyone if you are single, but there could be certainly some advantages of getting married to someone later in life to have the married filing jointly tax brackets.

I know that none of you will do it only because of that.

At least that's my hope.

but understand that if you are debating whether I should get in a relationship with someone and things seem pretty official and maybe it makes sense to do so from a tax standpoint as well.

So just something to think about, but hopefully there's zero encouragement or push on that side of things.

of them we often tell single people that if they come to us and they're single and they're expecting to stay single, then we need to be very aware of the tax planning that we do now because if we're not expecting our tax situation to change moving forward, it's certainly not going to become better for us.

And I know all your life with your pensions, you've been told you'll be in a lower tax bracket in retirement, but you know that's not the case because of that pension.

And oftentimes that advice is given to those without pensions and are not keeping you in mind with that pension specifically.

And so knowing that, you're likely going to be in the same or higher tax bracket and so that's why it makes the things we're talking about in today's video even that much more important if you are single.