Retirement Tax Worries on the Rise Among Americans, Allianz Life Study Finds

KEY FINDINGS:

• 70% of Americans worry about taxes on their income in retirement
• 70% worry that higher taxes in the future will impact their retirement income from tax-deferred accounts such as a 401(k) or IRA
• 62% say they would stop using their current financial professional if they didn't help them navigate the current tax environment strategically

MINNEAPOLIS - March 24, 2026 - As Tax Day approaches, Americans are increasingly worried about the effect of taxes on their long-term finances in retirement, according to the Q1 2026 Quarterly Market Perceptions Study* from the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America (Allianz Life).

The majority of Americans (70%) are concerned about taxes on their income in retirement. This is up from 66% last quarter. The increase is largely driven by Generation X. More than three in four (78%) of Gen Xers said they are concerned about taxes on their income in retirement, up from 66% last quarter. Millennials (74%), Gen Z (64%) and boomers (63%) were less likely to hold this concern.

Many Americans (70%) also worry that higher taxes in the future will impact their retirement income from tax-deferred accounts such as a 401(k) or IRA. Again, Gen X (80%) was more likely than Millennials (75%), Gen Z (74%) or boomers (57%) to worry about higher taxes in the future impacting their retirement income from tax-deferred accounts.

"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," says Kelly LaVigne, VP of consumer insights, Allianz Life. "One strategy can be to spread your assets across various tax asset classes to potentially minimize your exposure to future tax changes. A partial Roth IRA conversion can help by paying taxes on assets now so those funds can be withdrawn tax-free later. A financial or tax professional can help you create a tax-efficient withdrawal strategy to put the most money in your pocket for retirement spending."

Americans are interested in professional guidance around taxes. More than half (62%) say they would stop using their current financial professional if they didn't help them navigate the current tax environment strategically.

Gen X is least optimistic generation

While Gen X worries about future taxes, they also have the least optimistic view of the current economic environment. Just 25% of Gen X say it is a good time to invest in the market right now compared to 39% of Gen Z, 40% of millennials and 32% of boomers. Similarly, more Gen Xers than those in other generations worry that inflation will worsen in the next 12 months and that the increased cost of living will prevent them from affording the lifestyle they want in retirement.

Gen X (72%) and millennials (71%) are more likely than Gen Z (66%) and boomers (42%) to say that they need to accumulate more money to retire but are too nervous to invest more in the market. Nearly four in five (79%) of Gen Xers say they are concerned that continued market volatility could negatively impact their long-term financial plan. Fewer millennials (74%) Gen Z (71%) and boomers (59%) said the same.

"Gen X is approaching the years before retirement when risks like market volatility can have an outsized effect on their long-term financial outlook," LaVigne says. "While that time can come with increased worry, Gen Xers can use that anxiety to fuel action in preparing a retirement strategy that incorporates risk management solutions, such as Defined Outcome exchange-traded funds (ETFs) or buffered annuities, to serve as a guide in the years ahead."

* Allianz Center for the Future of Retirement conducted an online survey, the Q1 2026 Quarterly Market Perceptions Study in February 2026 with a nationally representative sample of 1,005 respondents age 18+ in the contiguous U.S.

The Allianz Center for the Future of Retirement produces insights and research as a part of Allianz Life Insurance Company of North America.

This content is for general educational purposes only. It is not intended to provide tax, or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Allianz Life Insurance Company of North America, its affiliated companies, and their representatives and employees do not give tax or legal advice, or advice related to Social Security or Medicare. Clients are encouraged to consult their tax advisor or attorney, or Social Security Administration (SSA) office, for their particular situation.

Annuities are issued by Allianz Life Insurance Company of North America (Allianz). Registered index-linked annuities are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com

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