I will be in a lower tax bracket after I retire, so I should defer income till then.
Further, in your pre-retirement years your salary would have been structured so as to keep your tax incidence to the minimum. This is generally not the case with investments, since the focus is on liquidity, regular returns and low risk. Also, it’s quite likely that you could keep yourself occupied in your sunset years by taking up part-time jobs. The income you so earn will add to your taxable income. All these factors contribute towards a higher tax liability, post-retirement, and therefore it doesn’t quite make sense to postpone the accrual of income to the post-retirement period.
