Retirees Lack Awareness of Income Tax Hits: Nationwide

The overwhelming majority of those nearing retirement (82%) want to learn about taxes, Nationwide Retirement stated.

"Today, the majority of older consumers are focusing on saving for retirement, which is a critical component of your retirement plan, but not the only factor," stated Eric Henderson, president of Nationwide's life insurance business in a statement. "Building tax flexibility into a retirement income plan is crucial."

The situation leads many to have wished they had been more proactive about planning earlier.

The survey found that more than a quarter of older consumers owe tax money each year while those retired for more than 10 years are least likely to receive a tax refund each year.

Almost half of recent retirees responded that they wish they would have better prepared for paying taxes in retirement, with nearly a quarter acknowledging in retirement that they have paid several thousands of dollars more in taxes than they expected to.

The survey was conducted online by The Harris Poll on behalf of The Nationwide Retirement Institute in late August 2018 and included 1,031 adults age 50 or older.