Columbus, OH – As the dreaded April 15 tax deadline approaches, most Americans discover themselves pressured to give attention to one in every of their least favourite duties of the yr: submitting their taxes. According to a brand new Advisor Authority study powered by the Nationwide Retirement Institute, failure to take into consideration taxes extra than simply every year might have main implications for the retirement safety of thousands and thousands of Americans.
The research discovered Americans are bracing for the next tax burden in retirement, but most usually are not partaking in proactive, year-round tax planning to mitigate their publicity. Four in 5 (80%) buyers broadly count on taxes to rise sooner or later, but lower than one-third (31%) of this cohort are proactively adjusting their monetary plan accordingly.
Additionally, 17% of buyers say not figuring out the very best tax methods for their portfolio or understanding tax implications (14%) earlier than retirement withdrawals are amongst their largest considerations when planning for retirement.
“Our research highlights that for many buyers, tax anxiousness is actual – nonetheless, their plan to tackle it’s missing,” mentioned Kush Kotecha, president of Nationwide Annuity. “A majority of investors are telling us they’re concerned about rising taxes, but only a fraction are taking steps to prepare their portfolios. That gap between worry and action is where real financial risk can build.”
For many investors, tax planning starts and ends with tax season
Despite widespread concern about taxes, most investors are not engaging in proactive, year-round tax planning. More than one-third (34%) say they mostly pay attention to taxes during “tax season,” and only one in four (26%) engage in ongoing, proactive tax management all year.
Among investors who work with a financial advisor, 29% say they count on their advisor to help them plan for taxes in retirement. However, just 37% of these investors say their advisor proactively discusses tax planning strategies or tax policy changes as part of regular review meetings. More than one in 10 (11%) say discussions happen only when major tax law changes occur or when they specifically ask about tax matters (11%). For most investors, this means tax planning only comes up when something forces the conversation.
“Advisors should make taxes a part of regular client discussions,” Kotecha mentioned. “Investors with an advisor who are not receiving regular guidance on this important topic should ask for it or consider looking for a financial professional who will help them prioritize tax-efficient retirement planning.”
Tax methods usually are not one-size-fits-all, however some buyers are flying blind
Less than half (44%) of buyers surveyed say their portfolio is a mix of taxable, tax-deferred, and tax-free property – possible indicating good tax diversification. Others surveyed indicated heavier reliance on a single taxable class of property. A significant share of buyers (13%) don’t understand how to describe their portfolio’s tax composition.
“It’s not shocking to discover investor portfolios are available all styles and sizes when it comes to tax publicity, and it is essential to acknowledge that there isn’t any ‘one-size-fits-all’ strategy,” said Kotecha. “However, these with out consciousness of their portfolio’s tax profile or a method for managing the combination of taxable asset courses in their portfolio threat missed alternatives or unforced errors that would hang-out them in retirement. Personalized, advisor-led planning is crucial to assist buyers perceive how their distinctive mixture of property might be taxed, each now and in retirement.”
Advisors say they are helping clients take action
While nearly half (45%) of advisors say their clients have a risky mix of taxable asset classes, the vast majority (85%) say they’re working with their clients to help them diversify their tax profile within their portfolio.
With taxes expected to rise, advisors are also increasingly steering clients toward tax-efficient income solutions. More than half (60%) of advisors say given the events of the last 12 months, they are more likely to recommend a client put part of their portfolio into an annuity or other solution that provides guaranteed income.
“Advisors are recognizing that annuities generally is a highly effective device when it comes to reshaping the tax profile of a portfolio. By permitting property to develop tax-deferred, annuities may help scale back the drag of taxes on long-term returns and create a extra environment friendly revenue technique in retirement,” said Kotecha. “That effectivity issues for retirees who want predictable revenue and wish extra management over how and once they pay taxes. In an atmosphere the place each greenback of after-tax revenue counts, annuities can provide a way of stability and safety that is more and more laborious to discover.”
The Nationwide Retirement Institute offers this guide to help investors think about planning for a tax-efficient retirement.
For more insights on this survey data, see our infographic.
Nationwide’s eleventh annual Advisor Authority study, powered by the Nationwide Retirement Institute® explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.
About Advisor Authority: Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 528 advisors and financial professionals and 2,012 investors ages 18+ with investable assets (IA) of $10K+, January 15-February 6, 2026. Among the investors, there were 1,041 with a financial professional, 971 without a financial professional, 300 High Net Worth (IA of $1M-$4.99M), and 504 Less Affluent ($10K to <$100K).
Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data for advisors is accurate to within ± 4.3 percentage points using a 95% confidence level. For investors data is accurate to within ± 2.98 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact news@nationwide.com.
About The Harris Poll
The Harris Poll is one of the longest running surveys in the U.S tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.
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