Concerns About Taxes Impacting Retirement Income

As the deadline for tax filings approaches, Allianz Life Insurance Company of North America highlights a rising concern among Americans about taxes impacting their retirement income. According to the Q1 2026 Quarterly Market Perceptions Study, 70% of Americans express anxiety over taxes affecting retirement savings, up from 66% last quarter. Generation X reports the highest worry, increasing from 66% to 78%.

Other generational groups show varying concerns: Millennials at 74%, Gen Z at 64%, and baby boomers at 63%. Furthermore, 70% of respondents fear potential tax hikes eroding gains from tax-deferred accounts like 401(k)s and IRAs. Here again, Generation X leads with 80% expressing worry, followed by millennials at 75%, Gen Z at 74%, and boomers at 57%.

Kelly LaVigne, Allianz Life’s Vice President of Consumer Insights, remarked, “If you have saved for retirement in tax-deferred accounts, it can be helpful to think through how your retirement savings will be taxed when you start taking income in retirement.” She advises diversifying assets to mitigate tax risks and considering Roth IRA conversions for tax-free future withdrawals. Partnering with a financial or tax professional is recommended to optimize retirement income through tax-efficient strategies.

Demand for Tax Guidance Rises

The demand for tax-related financial advice is also on the rise, with nearly 62% of surveyed individuals contemplating switching advisors if effective tax navigation strategies are not provided. This emphasizes the importance of integrating tax-efficient planning in retirement portfolios.

Market Confidence and Risk Management

Amid tax concerns, Generation X reveals the lowest confidence in current market conditions, with only 25% considering it a good time to invest. This contrasts with more optimistic views from Gen Z at 39%, millennials at 40%, and boomers at 32%. Additionally, Generation X worries about inflation’s impact on their retirement lifestyle, showing investment caution alongside millennials.

Market volatility remains a significant worry for long-term financial security, particularly for near-retirement Generation X. A substantial 79% of this group fear volatility could derail financial plans, compared to 74% of millennials, 71% of Gen Z, and 59% of boomers. LaVigne underlines the necessity of incorporating risk management strategies such as Defined Outcome ETFs and buffered annuities into retirement planning to navigate these uncertainties.