Survey: COVID-19 Impact Reveals Desire for Retirement Tax Planning Help

Jul 10, 2020 / Amanda Chase, Horsesmouth Assistant Editor

Considering the financial impact of COVID-19, many Americans are reevaluating their plans for retirement and are interested in learning more about how to use income sources to maximize retirement income and minimize taxes, according to new survey results. Findings in Nationwide Retirement Institute’s 2019 Tax-Efficient Retirement Income survey reveal that a third of current retirees (35%) did not consider how taxes would affect their retirement income when planning for retirement. As a result, many express regrets, with nearly a third of retirees (32%) reporting they wish they had done more to prepare.

As for the impact of COVID-19, roughly two in five (38%) respondents said the pandemic has impacted their retirement plans by either having to retire later than planned, not being able to retire at all now or being forced to retire. Plus, 41% say they are currently reevaluating their retirement plans to assess the financial impact. Moreover, in light of the pandemic, 63% say it is more important now to develop a strategy to address taxes in retirement and 59% worry more now about what taxes will do to their income in retirement than they did before. These are among the findings revealed by a supplemental tax survey conducted online in May 2020.

A separate COVID-19 Financial Survey by Nationwide conducted online in April 2020 finds that a quarter (24%) of Americans are seeking help by engaging a financial adviser for the first time ever as a result of the pandemic. This is an opportunity for financial advisers to discuss tax planning in retirement and educate clients on the best strategies to reduce unexpected taxes on combined income sources. In fact, the broader 2019 survey shows that current and future retirees prefer using a financial adviser to learn about retirement planning (57%) versus reading printed materials (46%) or doing independent research online (45%).

You can find the full article at the National Association of Plan Advisors.


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