By: Sentient Wealth Group
Retirement planning has evolved significantly over the years. The days of receiving a steady pension check are becoming less common, with many employers replacing pensions with 401(k) plans. While these plans offer more flexibility, they also place the responsibility of managing investments—and making key tax decisions—on you. Should you fund your 401(k) or 403(b) with pre-tax dollars or Roth contributions? How do you distribute funds during retirement to optimize your tax situation? The reality is it’s not as simple as waiting for a pension check each month anymore.
As people are living longer, the retirement horizon has expanded. For example, an average couple retiring in their early 60s today may expect one spouse to live well into their 90s. This means your retirement could last 30 years or more, and your money needs to stretch as long as you do. Smart tax planning can help make your funds last longer, and it’s especially important given that tax rates are expected to rise in 2026 due to persistent budget deficits and the growing costs of programs like Medicare and Social Security.
Therefore, tax planning remains one of the most controllable aspects of your financial future. By focusing on how to keep your wealth as tax-efficient as possible, you’ll be able to minimize tax burdens in retirement and preserve more of your money for the long term.
The time to start planning for a smarter, lower-tax retirement is now. Download our “Plan for a Smarter, Lower-Tax Retirement” guide to learn more about strategies to help you navigate these changes and work toward your financial future.
Start planning today, your future self will thank you!