Three in four boomers (74%) attach some importance to tax-deferral in selecting a retirement investment. And of this group, 44% consider tax-deferral very important, new research reveals.
The Insured Retirement Institute, Washington, D.C., published this finding in a new study, “Tax Policy and Middle-Income Boomers: The Importance of Tax deferral in Attaining Retirement Security.” The new report, based on a preliminary sample of 503 Americans between the ages of 50 and 66, presents IRI research on the importance that boomers place on tax-deferral and taxation, and the consequences of potential changes in taxation on middle income boomers’ likelihood to save for retirement.
The report notes that nearly half of boomers (48%) between the ages 50 and 54 consider tax-deferral a very important feature of a retirement investment product. another 29% of respondents rate tax-deferral as somewhat important. And nearly one-quarter of investors (23%) cite tax-deferred growth as the primary reason for purchasing annuities.
Of respondents between the ages of 55 and 59 and between 60 and 66, 46% and 40%, respectively, rate tax-deferral s very important. An additional 32% and 31% of respectively, of boomers in these age groups rate tax-deferral as somewhat important.