Company shares five tax-efficient strategies to consider as part of a holistic financial plan

As consumers focus on filing their taxes and spending those returns, a new study reveals a need for increased awareness around tax-efficient financial strategies. Lincoln Financial Group’s Consumer Sentiment Tracker reports that only 2% of Americans can correctly identify financial solutions with tax advantages, despite one in three saying they prioritize investments that would help them pay less in taxes either now or in the future.

“Lincoln’s research shows consumers are under-educated about tax strategy and tax-efficient investments, revealing a disconnect between aspirations and actions,” said David Berkowitz, president, Lincoln Financial Network - the wealth management arm of Lincoln Financial Group that provides advice and guidance through its extensive network of independent financial professionals. “There is a real opportunity for our industry to help simplify these products and solutions so that Americans can feel more confident making the right financial decisions for themselves and their loved ones.”

Lincoln Financial Group recommends the following five tax-efficient strategies that can be considered as part of a holistic financial plan:

  1. Contribute to a workplace retirement account. Pretax contributions to a retirement savings plan offered through one’s employer will reduce total taxable income and allow savings to grow tax deferred. A good rule of thumb is for consumers to save at least 10% to 15% of their pay, but if that feels out of reach, start wherever possible and try increasing contributions by a little each year to see big changes in total savings over time. Remember to save up to the employer match, if offered.
  2. Explore the value of lifetime income. At a time when people are living longer and face greater risks to their savings, an annuity is an investment solution that can provide pre-retirees with guaranteed monthly income that’s protected and can last a lifetime. Taxes on the gains aren’t paid until the money is withdrawn, so interest can be earned on the money that would have otherwise been paid in taxes. If people are in a lower tax bracket during retirement, that means potentially paying less in taxes overall on the same amount of money. A financial professional can help determine which type of annuity might be best for individual needs, preferences and income planning goals.
  3. Prepare for unexpected long-term care costs. The greatest changes to income and lifestyle may result from an unexpected long-term health care event. Different solutions can help provide a cushion, and many of these benefits are income tax-free. Understanding the various policies is the first step in helping prepare for the future to ensure receiving needed care without passing a financial burden on to family or loved ones.
  4. Diversify a portfolio with life insurance. Adding cash value life insurance to a portfolio can help protect consumers’ savings and provide an income tax-free death benefit for their beneficiaries, as well as tax-deferred growth opportunities. As part of a larger financial plan, life insurance benefits can also offer advantages that help meet goals at every stage of life, including funding a child’s education costs; strengthening retirement savings; creating additional cash flow; and helping to protect wealth for future generations. If loans or withdrawals are taken, it will reduce the death benefit and other values, as well as have potential tax consequences.
  5. Work with a financial professional. According to Lincoln’s study, just 1 in 5 U.S. adults feels very confident about making financial decisions to minimize exposure to taxes, yet nearly half (47%) say they are more concerned about the impact of taxes on their retirement savings as a result of the current market. A financial professional can help tailor a holistic plan to one’s specific needs, as well as provide education about various insurance and retirement solutions.

“Ongoing challenges like market volatility, inflation and changing tax laws have the potential to hit us all hard in the wallet,” said Berkowitz. “That’s why tax-efficient investing is an especially important aspect of financial planning that can help you build wealth and achieve your financial goals.”

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Consumer Sentiment Tracker 2022 Methodology

The goal of this research is to gauge consumer sentiment on a variety of financial topics. Data was collected in March, April, May, June, July, September, October, and November 2022 using the Qualtrics survey platform. Responses were collected from a total of 1,000+ U.S. adults each month. The sample included quotas to be representative of the total U.S. adult population.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, approximately 16 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $282 billion in end-of-period account values as of December 31, 2022. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good and ranks among Newsweek’s Most Responsible Companies. Dedicated to diversity, equity and inclusion, we are included on transparency benchmarking tools such as the Corporate Equality Index, the Disability Equality Index and the Bloomberg Gender-Equality Index. Committed to providing our employees with flexible work arrangements, we were named to FlexJobs’ list of the Top 100 Companies to Watch for Remote Jobs in 2022. With a long and rich legacy of acting ethically, telling the truth and speaking up for what is right, Lincoln was recognized as one of Ethisphere’s 2022 World’s Most Ethical Companies®. We create opportunities for early career talent through our intern development program, which ranks among WayUp and Yello’s annual list of Top 100 Internship Programs. Learn more at: Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at

Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent professional as to any tax, accounting, or legal statements made herein.

Lincoln annuities and life insurance policies are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and contracts sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY; distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Securities and investment advisory services offered through other affiliates.

Annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal.

Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.


Media: Holly Fair Lincoln Financial Group 484-583-1632

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