Tax fears rise as Gen X anxiety intensifies ahead of retirement

With Tax Day looming, concern about the long-term impact of taxes on retirement income is climbing sharply among Americans, according to new research from Allianz Life Insurance Company of North America.

Findings from the firm’s Q1 2026 Quarterly Market Perceptions Study show that 70% of Americans are now worried about how taxes will affect their retirement income, up from 66% in the previous quarter. The increase is being driven largely by Generation X, where concern jumped to 78% from 66%.

Other generations reported lower levels of concern, including millennials at 74%, Gen Z at 64%, and baby boomers at 63%.

The same proportion of respondents — 70% — said they are concerned that future tax increases could erode income from tax-deferred retirement vehicles such as 401(k)s and IRAs. Again, Gen X stood out, with 80% expressing this worry, compared with 75% of millennials, 74% of Gen Z, and 57% of boomers.

“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,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “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 A partial Roth IRA conversion can help by paying taxes on assets now so those funds can be withdrawn tax-free later. A financial or tax professional can help you create a tax-efficient withdrawal strategy to put the most money in your pocket for retirement spending.”

Demand for tax guidance is also rising. Nearly two-thirds (62%) of respondents said they would consider leaving their current financial professional if they failed to provide strategic help navigating today’s tax environment.

Beyond tax concerns, Gen X respondents expressed the weakest confidence in current market conditions. Only 25% said now is a good time to invest — significantly below Gen Z (39%), millennials (40%), and boomers (32%).

They are also more likely than other cohorts to expect inflation to worsen over the next year and to worry that higher living costs could limit their desired retirement lifestyle.

Reluctance to invest is another defining theme. While 72% of Gen X and 71% of millennials said they need to build more savings for retirement, both groups admitted they are hesitant to increase market exposure. That compares with 66% of Gen Z and 42% of boomers.

Market volatility remains a key concern, particularly for Gen X. Nearly 79% said ongoing fluctuations could derail their long-term financial plans, compared with 74% of millennials, 71% of Gen Z, and 59% of boomers.

“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 says. “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 (ETFs) or buffered annuities, to serve as a guide in the years ahead.”