Later Deadline Isn’t Necessarily Better – Tax Changes Causing Americans Concern
June 26 2020 - 9:00AM
Business Wire
Lincoln Financial Research Reveals 7 Out Of 10
Consumers Are Concerned A Change In Taxes Will Have An Impact On
Their Retirement Savings; And Yet, Less Than A Third Are Preparing
for the Impact
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 (NYSE: LNC). 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.
“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.
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.
In addition to these employer-sponsored retirement plans,
consumers should consider other tax-efficient products in their
overall retirement portfolio to protect from taxes in the present
and in the future.
- An annuity can play a key role in helping to protect savings
from today’s — and tomorrow’s — taxes, as consumers work toward
planning for a reliable income stream through retirement. The
impact of taxes in the future is unknown; in the face of this
uncertainty, a tax diversification strategy that includes an
annuity can give consumers the confidence that they will always
have income available.
- Life insurance provides valuable tax-free death benefit
protection, but certain types of policies also offer the
opportunity to accumulate savings on a tax-deferred basis, which
can be accessed later in life through income-tax free policy loans
and withdrawals for needs such as supplemental retirement income.
Tax-advantaged cash value life insurance can provide an important
financial resource that helps diversify your retirement portfolio
without affecting an individual’s income tax bracket, Medicare
premiums, Social Security tax, capital gains or modified adjusted
gross income.
- Long-term care/elder care is the top retirement risk the
respondents felt unprepared for5. Today many different types of
private long-term care funding solutions are available that may
help mitigate the costs of care events. Hybrid life
insurance/long-term care policies are growing in popularity in the
marketplace offering income tax-free reimbursements for qualified
long-term care expenses or an income tax-free death benefit if care
is not needed.
More than two thirds of adults have yet to talk to a financial
professional about how to minimize exposure to taxes6. By working
with a financial professional, consumers can identify tax
strategies to protect and grow retirement income and savings.
For more tax-related financial planning information, as well as
how to create an overall financial plan, visit
lincolnfinancial.com.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help
empower people to take charge of their financial lives with
confidence and optimism. Today, more than 17 million customers
trust our retirement, insurance and wealth protection expertise to
help address their lifestyle, savings and income goals, as well as
to guard against long-term care expenses. Headquartered in Radnor,
Pennsylvania, Lincoln Financial Group is the marketing name for
Lincoln National Corporation (NYSE:LNC) and its affiliates. The
company had $247 billion in end-of-period account values as of
March 31, 2020. Lincoln Financial Group is a committed corporate
citizen included on major sustainability indices including the Dow
Jones Sustainability Index North America and FTSE4Good. Dedicated
to diversity and inclusion, Lincoln earned perfect 100 percent
scores on the Corporate Equality Index and the Disability Equality
Index. Lincoln has also been recognized in Newsweek’s Most
Responsible Companies and is among Forbes’ World’s Best Employers,
Best Large Employers, Best Employers for Diversity, Best Employers
for Women and ranked on the JUST 100 list. Learn more at:
www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn,
and Instagram. Sign up for email alerts at
http://newsroom.lfg.com.
___________________________
1 Lincoln Financial and CivicScience, 2020 July 15 Tax Deadline
Pulse, June 2020 2 Lincoln Financial, The Value of Advice, January
2020 3 IRS, 2020 Filing Season Statistics 4 Lincoln Financial, The
Value of Advice, January 2020 5 Lincoln Financial, The Value of
Advice, January 2020 6 Lincoln Financial, The Value of Advice,
January 2020
LCN-3136872-062320
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200626005070/en/
Media: Lincoln Financial
Group Kelly Capizzi 484-583-1273 Kelly.Capizzi@lfg.com
Lincoln National (NYSE:LNC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Lincoln National (NYSE:LNC)
Historical Stock Chart
From Sep 2023 to Sep 2024