Many people worry about how they will retire. Retirement is a challenging prospect for most people. It signifies the loss of a permanent income, and leads to a number of fears and worries.

Even when people save money throughout their careers, it is often not enough because of the various taxes involved. It goes without saying that at any employed person needs to pay a number of taxes, sometimes even after retirement.

Something to know

This leads to significant decrease in the amount of money that they would otherwise have saved. For instance, if you distribute money from your regular savings accounts to your retirement savings account the amount is taxable.

Even when you try to save significant amount of money for your future post retirement, because of the various taxes involved it is never enough.

Not simple

Did you know there are tax laws that could help you have a secure future after retirement? Yes, even while 85 percent of your social security is taxable, there are legal ways to make your income tax free so you are able to enjoy greater benefits after retirement. However keep in mind that planning for retirement is not quick or easy.

A lot of time should be devoted to retirement planning. Throughout your working life if you try to make most of your retirement savings tax free, it will slowly lead to greater benefits when you do retire. You must begin early in life and stick to the process.

The following are some of the legal ways you can enjoy tax-free retirement savings.

Roth IRA: This is a retirement savings account where even those with limited income can put in money every year. The best part about the Roth IRA is that the money you save is completely tax free.

While there is no tax deduction when the money enters the account, you don’t have to pay taxes on the money as it grows year after year, and the final amount is also tax free. This is most people’s starter account, because it easy and tax-free. Simply contributing $5,000 a year could get you a handsome return after retirement.

Roth 401(k): While the Roth IRA is for those with a limited income, the Roth 401(k) is for those who can contribute up to $19,000 every year. Everything else is similar to the Roth IRA: the money goes in tax free and withdrawals are also tax free.

Government stocks and bonds: This is considered one of the safest investment options, because the income is tax free and there is far lower risk than in taxable stocks and bonds.