Future Taxes, Market Volatility Heighten Retirement Savers’ Concerns

Americans have become increasingly worried about the effect of taxes on their long-term finances in retirement, according to the “Q1 2026 Quarterly Market Perceptions Study” from the Allianz Center for the Future of Retirement, a division of the Allianz Life Insurance Co. of North America.

Retirement savers expressed concerns about how current economic conditions will impact their lifestyles in retirement as the U.S. national debt has surged past a record $39 trillion several few weeks into the latest conflict with Iran and soon after the federal deficit hit $1.78 trillion at the end of 2025.

Tax Concerns

In the first quarter of 2026, 70% of U.S. respondents said they were concerned about how taxes would affect their income in retirement, up from 66% who said so one quarter earlier. The increase was driven largely by Generation X, 78% of whom said they were worried, up from 66% last quarter. Among Millennials, 74% reported being worried, while 64% of Generation Z said the same. Among Baby Boomers, 63% reported being worried.

The same proportion of Americans specifically reported being worried that higher taxes in the future would impact their retirement income from tax-deferred accounts such as a 401(k) or an individual retirement account. Again, members of Gen X (80%) were likelier than Millennials (75%), Gen Z (64%) and Boomers (63%) to report concerns.

“If you have saved for retirement in tax-deferred accounts, it can be helpful to think through how your retirement savings will be taxed when you start taking income in retirement,” said Kelly LaVigne, an Allianz Life vice president of consumer insights, in a statement. “One strategy can be to spread your assets across various tax asset classes to potentially minimize your exposure to future tax changes. A partial Roth IRA conversion can help by paying taxes on assets now so those funds can be withdrawn tax-free later.”

In addition, participants revealed just how much they rely on financial professionals to help them strategize about tax exposure: 62% of respondents said they would stop using their current financial professional if the professional did not help them navigate the current tax environment strategically. Gen X was the most likely to say so (85%), followed by Millennials (72%), Gen Z (63%) and Boomers (46%).

Market Woes

Aside from having tax-related concerns, members of Gen X also reported the least optimistic view of ongoing market volatility: 25% of Gen X participants said it was a good time to invest in , compared with 39% of Gen Z, 40% of Millennials and 32% of Boomers. Similarly, Gen X, more than other generations, reported being worried that inflation would worsen in the next year and that the rising cost of living would prevent them from living the lifestyle they wanted in retirement.

Gen X (72%) and Millennials (71%) were more likely than Gen Z and Boomers (both 42%) to say that they needed to accumulate more money to retire but were too nervous to invest more in the market. Gen X respondents were also most likely (79%) to say they were concerned that continued market volatility could negatively impact their long-term financial plan, compared with Millennials (74%), Gen Z (71%) and Boomers (59%).

“Gen X is approaching the years before retirement when risks like market volatility can have an outsized effect on their long-term financial outlook,” LaVigne said in a statement. “While that time can come with increased worry, Gen Xers can use that anxiety to fuel action in preparing a retirement strategy that incorporates risk management solutions, such as defined outcome exchange-traded funds or buffered annuities, to serve as a guide in the years ahead.”