• More than half (52%) say they’re missing out on the benefits of tax-smart saving strategies
• Very few (16%) give themselves an ‘A’ on how well they manage their taxes

Edelman Financial Engines Finds Nearly Half of Americans Admit They Just “File and Forget it” When it Comes to Taxes and Financial Planning

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Edelman Financial Engines PR Team
PRTeam@EdelmanFinancialEngines.com

Edelman Financial Engines (EFE), a top independent wealth planning¹ and workplace² investment advisory firm, today released findings from its new survey³ that explores the attitudes and perceptions people have related to taxes and financial planning.

The findings reveal knowledge and confidence gaps among many Americans who feel they’re missing out on opportunities to use tax-smart strategies as a part of their long-term financial planning. These insights also demonstrate a growing need for professional tax planning help.

“Taxes can be daunting and difficult for many people to manage on their own, yet they’re such an integral part of the broader financial planning process, which goes far beyond filing a tax return each year,” said Amin Dabit, SVP, Head of Wealth Planning at Edelman Financial Engines. “Taxes are connected to so many different money decisions, such as building and managing an investment portfolio, drawing down assets in retirement, and transferring wealth to family and creating a legacy. How we think about taxes in these situations can translate to significant dollars lost or gained over a lifetime. Our research shows that people want support in these areas to help increase their confidence and achieve their long-term goals.”

Key findings from EFE’s survey include the following:

Many people “file and forget” about their taxes and miss out on using year-round strategies.

• Nearly half (44%) of those surveyed admitted to thinking about their taxes only when it was time to file a return, rather than making tax decisions a part of their year-round financial planning.
• 52% feel they are missing out on valuable opportunities to minimize their tax burden and improve their wealth due to a lack of knowledge and advice.
• At a time in life when Americans need their dollars to stretch the farthest, more than half (53%) who are 55+ don’t understand strategies to help make their retirement income more tax efficient.

Taxes can be unpleasant and frustrating, and many admit they’re not at the “top of the class.”

• EFE found that, compared to a number of unpleasant activities, Americans liked tax planning about as much as spending a week at their in-laws, and only a little better than going to the DMV.
• Complex tax laws are a major source of stress for many Americans, regardless of their wealth. A majority (65%) cited changing or confusing tax laws as their main source of frustration.
• Only 16% of Americans gave themselves an ‘A’ for their tax management acumen; 42% gave themselves a ‘C’ or less. Men were twice as likely to rate themselves with a top grade compared to women.

Professional tax help can play a role in improving financial confidence and achieving one’s goals.

• According to the findings, the top three areas where people want professional tax help include planning for retirement (45%), followed equally by tax preparation (41%) and building a tax-efficient investment portfolio (41%).
• Individuals who received professional help were more familiar with tax-smart strategies than those who did not, especially with estate planning (13% more) and making conversions to Roth accounts for a tax benefit (8% more).
• Those who had help were also more proactive in considering their taxes year-round (18% more) and more confident in planning their taxes efficiently (10% more).

“Many Americans – even the affluent – are feeling unsure about their tax strategies, highlighting a significant need for more financial resources, advice and help to make better decisions for their financial plan,” said Eric Bronnenkant, Director of Tax Advisory and Planning at Edelman Financial Engines. “At EFE, our planning teams are able to show clients a clear path for optimizing their tax situation, which can help take the guesswork out of many complex financial decisions.”

EFE is addressing the need for tax planning support through a growing suite of specialized tools and resources, as well as a dedicated team of experts who can provide clients with advanced tax services, such as navigating tax codes and working with retirees to identify opportunities to generate income in the most efficient way. Since launching its tax efficient drawdown solution, EFE has identified more than $1 billion in potential retirement income savings for clients.⁴

For more information on these findings, visit: EFE Survey on Taxes and Financial Planning.

To get more insights on tax planning from EFE please visit the EFE Tax Planning Resource page.

About Edelman Financial Engines

Since 1986, Edelman Financial Engines has been committed to always acting in the best interests of our clients. We were founded on the belief that all investors – not just the wealthy – deserve access to personal, comprehensive financial planning and investment advice. Today, we are America’s top independent financial planning and investment advisory firm, recognized by Barron's¹ with 144 offices across the country and entrusted by 1.3 million clients to manage $292 billion in assets.⁵ Our unique approach to serving clients combines our advanced methodology and proprietary technology with the attention of a dedicated personal financial planner. Every client’s situation and goals are unique, and the powerful fusion of high-tech and high touch allows Edelman Financial Engines to deliver the personal plan and financial confidence that everyone deserves.

1. The Barron’s 2024 Top 100 RIA Firms list, a nine-year annual ranking of independent advisory firms, is based on qualitative and quantitative factors. Firms elect to participate but do not pay to be included in the ranking. The 2024 ranking refers to EFE as the top mega RIA.
   
   
2. According to the Cerulli Associates Top Nine Managed Account Sponsors by DC Assets survey of Defined Contribution managed account providers, The Cerulli Edge – U.S. Retirement Edition, 3Q 2024, Issue #72, Edelman Financial Engines is the largest managed account provider by DC assets and market share as of June 30, 2024.
   
   
3. EFE conducted an online survey via a third-party panel provider between Jan. 31 to Feb. 6, 2025, of 1,500 Americans who were at least 30 years old. The survey included an oversample of those age 55+ with $100K or more in household assets. Data was weighted for the oversample and by household assets, age, gender, race, and education to reflect the broader national population. Participants were compensated for their time by the panel provider.
   
   
4. Data from EFE’s tax-efficient proprietary solution between Jan. 1, 2023, and Feb. 20, 2025. Results reflect nearly 4,000 existing clients who were provided information on potential savings by modeling a tax-optimized account drawdown strategy based on financial goals and various factors (such as Social Security, pension benefits, sequencing withdrawals from all investment accounts, Roth conversions, and tax code updates).
   
   
5. Data from EFE’s Data Warehouse as of Dec. 31, 2024.

Work with your financial planner and tax professional for comprehensive tax strategies. Edelman Financial Engines does not offer tax advice. Seek professional tax advice for your specific situation.

© 2025 Edelman Financial Engines, LLC. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All advisory services provided by Financial Engines Advisors L.L.C., a federally registered investment advisor. Certain services provided on an educational and guidance basis only. Results are not guaranteed. AM4263163

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