The Finance of Longevity

New Research Shows How The Average Retiree May Be Torpedoed

Leading researchers show that many people will be taxed up to 40.7%

LEAWOOD, Kan., Aug. 23, 2018 /PRNewswire/ — New research, which has been published in the Journal of Financial Planning, shows the total impact of taxes on a retiree. The results are not good, as up to 20 million American retirees will be in a higher marginal tax rate up to 40.7%. Most people only focus on Federal Tax Brackets whereas the study shows the result of also including Social Security taxes.

This discovery comes from the research article, “Understanding the Tax Torpedo and Its Implications for Various Retirees,” published in the Journal of Financial Planning and written by William Reichenstien, Ph.D., CFA, Professor Emeritus, Baylor University and William Meyer, CEO of Retiree, Inc.

“This study shows the impact of strategically combining a Social Security claiming strategy together with a tax efficient withdrawal strategy. Most Americans don’t understand that Social Security is taxed and that they may be able to reduce their marginal tax rate,” said Reichenstein.

Extend Longevity of Retiree Portfolios

The recent tax law calls for temporarily lower tax brackets through 2025. Reichenstein and Meyer want to educate financial planners and retirees about steps they can take during the next few years that could significantly extend the longevity of retirees’ financial portfolios. “Our previous research showed how the Social Security claiming decision can make a person’s money last 2 to 10 years longer. Next, we showed how a tax efficient withdrawal strategy added another 7 years of longevity. In this study, we put the concepts together, including Social Security and Medicare,” says Meyer. The study clearly shows a retiree can be taxed at a much higher rate if they only focus on tax brackets.

Most Americans don't understand that Social Security is taxed and that they may be able to reduce their marginal tax rate...

You can access the research in the Journal of Financial Planning or download a free report from the authors to see how much more money you can find from implementing these concept for your retirement situation at

About Retiree, Inc. (
Founded on the belief that there is a better way to serve retirees or people getting ready to retire—one that is smarter and more personalized, the company produces retirement income planning software for both financial professionals and consumers.

About William Meyer
Meyer is CEO of Retiree, Inc. He has decades of experience developing software that delivers quality advice to people in or near retirement. Meyer and Reichenstein wrote Social Security Strategies, 3rd edition (2017).

About William Reichenstein, PhD, CFA
Reichenstein is Head of Research at Retiree, Inc. and Professor Emeritus at Baylor University In addition, he is a member of Wall Street Journal’s “The Experts” panel.