TAKE THESE STEPS TO TAME YOUR TAXES IN RETIREMENT

Worried about rising rates? Here’s how to avoid a bigger bill after you stop working.

- BY RICHARD EISENBERG

A growing number of Americans are worried that higher taxes in the future will erode their income in retirement.

Yet few people who express this concern are adjusting their financial plans to help meet the challenge.

That’s the conclusion of two recent surveys by financial services companies. According to an Allianz Life study earlier this year, 70% of Americans are now concerned about the impact of taxes on their income once they stop working, up from 66% in 2025. Gen Xers, on the cusp of retirement at ages ranging from 46 to 61, are the most fearful, with nearly 80% of them sharing this concern. Yet, as a Nationwide Retirement Institute survey found, only 31% of investors who expect taxes to rise are taking steps to manage their finances accordingly.

“Taxes continue to be in flux, and finding the right strategy to help maximize your retirement income is definitely key,” says Kush Kotecha, president of Nationwide Annuity.