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One significant area of concern for single retirees is the potential financial disadvantage when it comes to taxation and benefits. Unlike married couples, who can file jointly and enjoy enhanced Social Security benefits, single individuals must navigate a more rigid tax structure. Upon the death of a spouse, income tax brackets may effectively double for a single person, indicating that effective planning is crucial.
Single retirees may also encounter limitations with Social Security benefits since only one income stream is counted. Consequently, portioning and assessing provisional income becomes critical to minimize potential taxation on Social Security.