3 Tips For Minimizing Taxes And Maximizing Retirement AB Digital Planning for taxes in retirement is a lot like asking a child to eat their vegetables. While both parties don't appreciate the task they've been presented with, not doing so could lead to some bad consequences. Especially not paying taxes. For those who are retired or approaching retirement, it's important to understand that there are many ways to minimize taxes but no one-size-fits-all solution. This can make tax planning very complicated for retirees and even worse, costly. Living off a fixed income during retirement means that every dollar counts. And for those who choose the wrong strategy or happen to make a mistake, it could mean losses of potential tax savings or possible issues with the IRS.