A recent study confirmed that a vast majority place a high importance to tax-deferral in retirement planning. Roughly three out of four (74%) noted it as being important and 44% considers tax-deferral to be very important according to a study from the Insured Retirement Institute (IRI). This report was based a sample of 503 Americans between the ages of 50 and 66. Its output highlights the widely felt consequences that any potential changes to tax laws would cause.
Some key statics from this report were that over half of all baby boomers report that they would be less likely to save if they were to experience an increase in income tax while only 10% say that it would cause them to be less likely to save. Also, 24% of baby boomers report that they would be less likely to save for retirement if tax incentives for retirement savings were reduced or eliminated.
To see more from this survey, click here for an article by Warren Hersch.