Taxes on Retirement Income

Tax-free* options

Options for Tax-Free* Retirement

Do you have to pay taxes on retirement income? Choosing the right tax strategy could potentially provide you tax-free* income. For example, a properly designed Indexed Universal Life Insurance (IUL) may provide tax advantages other policies do not.

The Purpose of Using an IUL Is To:
reduce taxes
Increase your retirement income
Protect your money loss

Life Insurance And Taxes on Retirement Income

In general, life insurance is not thought of as a source of retirement income. Retirement earnings are normally taxed. Normally, most withdrawals made are taxed. However, life insurance policies, such as IULs, are not taxed the same way. IULs are not actually investment vehicles, though they can be linked to an index. Therefore, your money is not at risk. This means you may receive tax-free* retirement income. Certain conditions apply to all policies. Contact us to find out what options are available to you regarding taxes on retirement income.

senior couple sitting on beach looking out toward the water taxes on retirement income warwick ri
woman on the beach with her hands up in the air taxes on retirement income warwick ri

Can I Retire With an IUL?

GPS Retirement can help you determine if an IUL is right for you. We can evaluate any current policies you have and guide you in the right direction. The following questions are a good place to start. 

  • Are taxes likely to rise in the future? 
  • Is there any way I can offset rising taxes in retirement?
  • Do my beneficiaries have to pay taxes? 
  • Is it better for me to pay taxes now or paying higher taxes later?
Find Out What Options Are Available

IUL offers a number of benefits.  How future tax rates affect your retirement is unknown. You can, however, plan ahead. IUL insurance might be worth exploring. In many cases, retirees feel confident about employing an IUL in their tax strategy.  Their principal is secure from market fluctuations, and its income is tax-free*.

We offer “Greenline” and “Tax-Free* Retirement” workshops to learn what options are available.

Please feel free to contact our office for a no-obligation, no-cost meeting.  We can help you plan a strategy for taxes on retirement income using an IUL policy.

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