Americans age 45 and older with lower incomes worry more about rising taxes than those with higher incomes. But the over-45 group is also less likely to participate in a 401(k) or other retirement plans that could reduce their taxes or provide tax-free income, according to new research.
The Hartford Financial Services Group, Inc., Simsbury, Conn., published this finding in a summary of results from a new report. The Hartford’s 2011 Taxes and Investment Study surveyed 750 Americans age 45 and older.
Rising taxes are cited as the biggest investment concern by 37% of respondents with annual incomes below $50,000, followed by inflation and market volatility. By comparison, only 28.5% of those with middle incomes (from $50,000 to $100,000) and 32% of those with high incomes (more than $100,000) were as worried about taxes.