Americans 45 and older with lower incomes worry more about rising taxes, but are less likely to participate in tax-advantaged retirement savings plans, according to The Hartford Financial Services Group.
Thirty-seven percent of respondents with annual income below $50,000 cited rising taxes as their biggest investment concern, followed by inflation and market volatility, according to The Hardford's 2011 Taxes and Investment Study. By comparison, 29.5% of those with incomes from $50,000 to $100,000 and 37% of those with incomes higher than $100,000 showed concern over taxes.
The study surveyed 750 Americans aged 45 and older, according to The Hartford.
Lower income Americans were also shown to be less likely to contribute to a 401k or similar retirement plans and were similarly less likely to invest in equities or bonds typically found in IRA's, variable annuities or other retirement savings than those with higher income.
"Rising taxes can have a bigger impact on Americans with lower incomes, so they are understandably more concerned about that possibility," said E. Thomas Foster Jr., vice president and national spokesperson for The Hartford's retirement plans. "The Hartford is working with employers that sponsor retirement plans to help educate employees about opportunities to reduce their tax bills, defer taxes on their investment earnings or generate tax-free income."