How Does Tax Timing Affect Spending in Retirement?

Summary

This study examines whether the timing of tax payments affects how retirees manage and consume their savings by investigating spending behavior during retirement. Specifically, it compares spending patterns between two types of retirement accounts: deferred-tax (DT) accounts, where taxes are paid upon withdrawal, and currently taxed (CT) accounts, where contributions are taxed upfront, but withdrawals are tax-free.