The coronacrisis has significantly impacted taxes in the US
2021 Tax-Efficient Retirement Income survey has unveiled that 1 in 5 Americans will delay their retirement or no longer retire at all.
The study also found 27% of the respondents have saved less or stopped saving for retirement because they lost their job or for other reasons. As a result, nearly 37% have or are likely to withdraw money from their retirement plan early because of the pandemic. In fact, this percentage is even higher for millennials at 58%.
In general, the research highlighted that younger adults have struggled with navigating their finances the most. For instance, 62% of millennials and 51% of Gen Xers said the pandemic has made their finances more complicated, compared to 27% of boomers.
Besides, the coronacrisis has put a needed spotlight on the critical role tax planning plays in reaching those long-term goals. This way, nearly half of Americans expect their taxes to go up significantly in the next 4years. Meanwhile, 62% agree it’s more important than ever to minimize taxes now than in retirement.
In fact, 42% of retirees didn’t consider how tax rates would affect their retirement income when planning for retirement. As a result, now 36% are afraid of what tax rates will do to their retirement income.
Besides, 42% of all respondents revealed that COviD-19 made their taxes more complicated, and this figure jumps to 58% for millennials.
We’ve reported that 3 in 4 UAE SMEs optimistic about business recovery.