In the third phase, health care expenses ramp up so much that this last phase of retirement is usually the most expensive phase of life. Payroll taxes include 6.2 percent of your salary for Social Security up to $118,500, and 1.45 percent more to support Medicare. When you stop getting a paycheck, you stop paying taxes on it. That said, many people are surprised to learn that Social Security benefits are taxed. If your total retirement income tops $34,000 for individuals and $44,000 for couples, up to 85 percent of your Social Security payments may be taxable.

Source: Huffington Post October 23, 2016 13:30 UTC