With this year’s new tax deadline (July 15) quickly approaching, Americans are concerned about taxes but it’s not about filing on time1. Nearly 7 out of 10 consumers are concerned that a change in taxes will have an impact on their retirement savings according to research from Lincoln Financial Group. And yet, less than a third are currently preparing for the impact of taxes on their investments and retirement accounts2. The good news is that consumers can make smart decisions today that can benefit them in the future.
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“Tax planning is a crucial part of retirement planning–something that all too often goes unaccounted for”
“Tax planning is a crucial part of retirement planning–something that all too often goes unaccounted for,” said Peter B. Robertson, ChFC, a registered representative with Lincoln Financial Advisors. “Now more than ever, it is important for consumers to work with financial professionals to understand the implications of taxes on their financial future and develop a holistic plan that makes the most sense for their money and ultimately helps reduce the impact of taxes on their retirement.”
As of May 29, over 133 million individual income tax returns have already been filed for 20193. While it may be too late to impact those individual’s tax filings this year, there are strategies that can be put in place to provide tax-advantages in the future.
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Planning for Taxes Now and Later
Employer-sponsored retirement plans are not just an effective way to save for the future, they are also the products most often used for tax advantages or benefits4. And while the recent market volatility can be stressful when saving for retirement, it is important for plan participants to remember to stay the course and focus on their long-term goals. Even if an employer reduces or suspends a company match, consumers can continue to contribute to their retirement savings plan and if possible, consider raising their contribution to make up the difference.
