Investors across America consider relocation for retirement

For many Americans, the ideal picture of life in retirement includes relaxation, travel and embracing hobbies they were too busy to previously enjoy. But after living through the last few years of economic uncertainty and inflation, many are facing a new reality – one that involves moving to a more affordable region or retiring later than the norm of 65.

According to a new survey from the Nationwide Retirement Institute, one in six investors across the country say they will be forced to move to a more affordable region in retirement. Led by those in the Northeast (41%) and West (37%), who often experience higher taxes, another 32% of all investors don’t believe their current location makes sense financially as a place to retire.

What’s more, 41% of non-retired investors across all regions say they now expect to retire at age 66 or later, with Northeasterners (47%) being slightly more likely to share this view. Additionally, 37% of non-retired investors across the U.S. would continue working in some capacity if they retired in the next 12 months to supplement their income out of necessity, with those in the South (39%) saying this more than any other region.

“It’s not surprising that investors across the country are feeling the pressure after living through the last few years of economic turmoil. Between inflation and a lack of savings, many of those closest to retirement are likely feeling like they don’t have enough to make a traditional retirement work,” said Eric Stevenson, president of Nationwide Retirement Solutions. “While we do see attitudes and actions vary depending on where someone lives, it’s wise for everyone to consider the value of working with an advisor or financial professional to make sure your long-term plan is tailored to your specific goals and needs so you can feel more confident about your financial future.”

With only 40% of non-retired investors across the nation currently paying to work with an advisor or financial professional, one of the best ways for the remaining 60% to boost their retirement confidence is to consider working with one to ensure they have the right plan in place, Stevenson added.

Advisors across the country share investors’ economic concerns, with 78% saying they are worried about a U.S. economic recession in the next 12 months. However, they are helping their clients prepare by tapping into solutions that protect against market risk, like annuities, with advisors in the Midwest (85%) and West (78%) leading in incorporating them into client plans.

Advisors are also helping their clients evaluate when they might be financially ready to retire in light of the current economic environment, discussing tax strategies and how to accumulate sufficient retirement savings. Prioritizing long-term care planning is another tactic advisors are discussing with clients across the country as they prepare for retirement.

“Advisors recognize and acknowledge investors’ long-term needs when it comes to financial security,” Stevenson said. “For those who are considering relocating, they can help you think about a wider variety of factors you should take into consideration before making a move, like how tax implications can change, whether your new location meets your healthcare needs and whether you will have adequate community support. They can also help you feel more confident about your retirement plans – regardless of where you live – by exploring solutions that can protect your savings and help you plan for income you won’t outlive. Those who may feel they can’t afford to work with a financial professional should explore resources offered by their employer-sponsored retirement plans. Many plans offer a variety of planning and educational tools, and a growing number are offering investment options that guard against volatility and guarantee income in retirement as well.”

Need to connect with a financial professional? Nationwide has a team of specialists ready to listen and learn about your unique insurance and financial needs.

NFM-24554AO
01/2025