The Covid-19 pandemic has disrupted the retirement plans of many Americans, with 1-in-5 putting the dream of retirement on hold and 1-in-4 halting their retirement savings plans.
The newly released 2021 Tax-Efficient Retirement Income survey conducted by The Harris Poll on behalf of the Nationwide Retirement Institute polled 3,002 adults last month and found 19% of respondents stating they either delayed their retirement or decided not to retire at all.
Among the respondents, 27% either saved less or stopped saving for retirement and 37% have either withdrawn or plan to withdraw money early from their retirement plan in order to cover ongoing expenses.
Younger adults have experienced greater financial struggles over the course of the pandemic, with 62% of millennials and 51% of Gen Xers saying the pandemic made their finances more complicated ”“ in comparison, only 27% of baby boomers expressed the same level of challenge.
Furthermore, the respondents were not optimistic about their tax burden: 47% expected their taxes to go up significantly in the next four years while 42% said their taxes have become more complicated as a result of the pandemic.
“Covid-19 has many Americans feeling financially insecure, especially younger ones,” said Eric Henderson, president of Nationwide’s Annuity business.
“This presents an opportunity for financial professionals to not only get clients back on track, but ensure they have the right tools and education on topics like taxes in retirement, which can get them closer to their long-term goals.”
