Regulation & Compliance

MDRT Study Finds Consumer Confusion about Tax Reform

Thirty-nine percent of consumers misunderstand implications, 72 percent with financial advisors will seek guidance from their advisors for 2018 strategies

PARK RIDGE, Ill. (April 16, 2018) — A recent study conducted by the Million Dollar Round Table (MDRT) finds many Americans are confused by the implications of recent tax regulation. As a result, consumers are turning to financial advisors to better understand changes and create strategic and protective financial plans.

Forty-two percent of survey respondents indicate they are not at all comfortable explaining the reform’s implications to others, while 13 percent say they haven’t even heard of the reform. Although changes to the law will affect returns filed next season, 39 percent of respondents mistakenly believe returns filed this year will be impacted. Eighteen percent anticipate a positive impact and 21 percent expect a negative impact, although, in reality, most of the impact will be felt next year.

Once In A Lifetime

“Major updates to tax laws are a once-in-a-generation change that will have a direct and lasting impact on consumers’ financial future,” noted James D. Pittman, CLU, CFP, MDRT President. “Clients should look to advisors for guidance and tactics to successfully navigate these changes. Methods to reduce pre-tax income or invest tax returns can make a substantial impact on wealth and retirement throughout the course of their career.”

Major updates to tax laws are a once-in-a-generation change that will have a direct and lasting impact on consumers’ financial future

One-third (33 percent) of survey respondents who work with financial advisors said one of the reasons they hired an advisor in the first place was to help file taxes. Almost three-in-four (72 percent) who currently work with an advisor say it is extremely likely or very likely they will work their financial advisor to help file taxes in 2018. Despite this interest, less than half of respondents’ say their advisor proactively reached out with advice about the tax reform this year.

Survey Methodology: The survey was conducted by G&S Business Communications on behalf of MDRT. G&S conducted an online snap poll of 480 consumers in the United States ages 18+. The survey was conducted from April 4-9, 2018.

About MDRT
Founded in 1927, Million Dollar Round Table (MDRT), The Premier Association of Financial Professionals®, is a global, independent association of more than 62,000 of the world’s leading life insurance and financial services professionals from more than 500 companies in 69 nations and territories. MDRT members demonstrate exceptional professional knowledge, strict ethical conduct and outstanding client service. MDRT membership is recognized internationally as the standard of excellence in the life insurance and financial services business. For more information, please visit and follow them on Twitter @MDRtweet.