Gen X Most Worried About Taxes, Volatility And Inflation Before Retirement

As tax day approaches, 70% of Americans say they are concerned about taxes on their income in retirement, up from 66% last quarter, according to the Q1 2026 Quarterly Market Perceptions Study from the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Company of North America.

The study, which was conducted online in February 2026 with a nationally representative sample of 1,005 adults age 18 and older in the contiguous United States, found that the increase is driven largely by Generation X.

More than three in four Gen X respondents (78%) said they are concerned about taxes on income in retirement, a sharp rise from 66% in the prior quarter. Millennials were next, with 74% expressing concerns. Gen Z (64%) and baby boomers (63%) reported lower levels of concern.

Tax worries extend to retirement income. Seven in 10 Americans say they are worried that higher taxes in the future will erode income from tax-deferred accounts such as 401(k)s and IRAs.

Again, Gen X stands out: 80% say they are concerned, compared with 75% of millennials, 74% of Gen Z and 57% of boomers.

“If you have saved for retirement in tax-deferred accounts, it can be helpful to think through how your retirement savings will be taxed when you start taking income in retirement,” says Kelly LaVigne, VP of consumer insights for Allianz Life.

“One strategy can be to spread your assets across various tax asset classes to potentially minimize your exposure to future tax changes. A partial Roth IRA conversion can help by paying taxes on assets now so those funds can be withdrawn tax-free later. A financial or tax professional can help you create a tax-efficient withdrawal strategy to put the most money in your pocket for retirement spending.”

The study found that Americans increasingly expect their advisors to help them navigate taxes. Nearly two-thirds of respondents (62%) said they would stop working with their current financial professional if that person did not help them address the current tax environment strategically.

Beyond taxes, Gen X emerged as the least optimistic cohort in the Allianz data. Only 25% of Gen X respondents said now is a good time to invest in the market, compared with 39% of Gen Z, 40% of millennials and 32% of boomers.

More Gen X respondents than those in other generations said they expect inflation to worsen over the next 12 months and that higher living costs could prevent them from affording their desired retirement lifestyle.

That pessimism is paired with a sense of being stuck. Gen X (72%) and millennials (71%) were more likely than Gen Z (66%) and Boomers (42%) to say they need to accumulate more money to retire but are too nervous to invest more in the market.

Nearly four in five Gen X respondents (79%) said they worry that continued market volatility could negatively affect their long-term financial plan, versus 74% of millennials, 71% of Gen Z and 59% of boomers.

“Gen X is approaching the years before retirement when risks like market volatility can have an outsized effect on their long-term financial outlook,” LaVigne said. “While that time can come with increased worry, Gen Xers can use that anxiety to fuel action in preparing a retirement strategy that incorporates risk management solutions, such as defined outcome exchange-traded funds (ETFs) or buffered annuities, to serve as a guide in the years ahead.”

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