Six in 10 (60%) Millennials (age 30-45) with financial professionals say they would welcome their advisor facilitating financial planning conversations among family members, compared to just 32% of Gen X (age 46-61) and only 16% of Baby Boomers and older (62+) who feel the same. Nearly half of Baby Boomers and older (46%) say they prefer to keep these conversations private, compared to just 10% of Millennials.

The stakes behind this divide are significant. Among Baby Boomers, 64% are actively transferring or planning to transfer wealth in the future, including 15% who are doing so right now. At the same time, this group continues to age, making the need for family alignment around their wishes and needs an issue that could be more urgent than some recognize. Notably, less than a quarter of Gen X and Baby Boomer investors (22% and 24%, respectively) have discussed with their next of kin how they can be prepared to help manage their finances when they become unable to do so.

“For many retirees, it can seem like everything is under control – until things change, which can happen fast,” said Juan José Pérez, senior vice president of Strategic Customer Solutions for Nationwide. “That’s when you need loved ones to not only understand the plan but also be ready to play their part. Older generations have an opportunity to help their family understand their wishes for the future and be better prepared to step in and help when the time comes. While private family conversations are a good place to start, a family meeting with an advisor at the table can accelerate a family’s ability to ensure a smooth, efficient and dignified transition.”

Half of investors are talking finances, while half put it off
When it comes to private conversations (without an advisor), investors are split on discussing finances as a family, with many not doing so at all. More than half (53%) of investors say they have had conversations with relatives (e.g., adult children or aging parents) about how they are planning for financial security in retirement in the past 12 months. Yet nearly half (47%) have not had these conversations — including 17% who say they don't think they’re necessary.

That reluctance is most pronounced among older generations. More than a quarter of Baby Boomers (27%) say it's not necessary: compared to just 8% of Gen Z, 12% of Millennials, and 14% of Gen X. Gen Z, by contrast, is the most likely to be planning ahead: 32% say they plan to have the conversation but haven't yet.

For older investors who do have conversations with family members, key priorities emerge:

• Half of Baby Boomers and older investors (50%) have shared their wishes for end-of-life care with their family.
• More than four in 10 of all Gen X and older investors (42%) have discussed access to their financial accounts, including 34% of Gen X and 47% of Baby Boomers and older investors.
• Nearly four in 10 (39%) of all Gen X and older investors have shared plans for passing on assets.

"When an older adult you’ve depended on your whole life for wisdom and stability suddenly becomes unable to manage their finances or care for themselves, it can feel like an instant crisis for many families,” Perez said. “It doesn’t have to be that way. Intergenerational conversations can help create a shared roadmap for how a family can come together to follow through on their loved one’s wishes if and when the time comes to do so.”

Advisors are ready to facilitate difficult conversations
Confident in their ability to navigate sensitive family dynamics, advisors are supporting families through difficult financial conversations. Nine in ten (90%) advisors say they currently facilitate conversations between aging clients and their adult children about retirement planning, healthcare costs, or financial security, including 43% who say it's a standard part of their practice. Most (91%) advisors say they are confident in their ability to facilitate sensitive family conversations with their clients.

Advisors are evolving their practices for a multi-generational approach
With most Baby Boomers having crossed the retirement threshold, nearly one in five advisors (17%) say their biggest concern about the long-term sustainability of their practice is client demographics, attracting new clients as older clients approach the end of their lives.

Advisors are taking deliberate action to better serve younger clients. Among advisors who work with clients under 45, the top approach to adapting their practice to serve across generations is focusing on retaining the family of existing clients via relationship building (27%). Additionally, a quarter of advisors (25%) say they are expanding their service offerings to be more holistic, rather than focusing on an investment-only approach.

“One of the biggest opportunities for advisors isn’t finding the next client – it’s deepening relationships with the families they already serve. It’s great to see advisors recognizing this and making it a focus. Advisors who intentionally bring family members into financial conversations, offer education around wealth transfer and stay present during major life events are far more likely to preserve trust and maintain continuity across generations, growing their practice as a result.”

Perez offered these tips to help families structure financial planning conversations with or without an advisor:

1. Start with wishes: Talk first about what matters most: End-of-life wishes, health and long-term care preferences, funeral plans, legacy goals, and how individuals want decisions made if they can no longer speak for themselves.
2. Make a plan for “if I need help:” Older parents should explain where key information lives — bank accounts, insurance policies, passwords, advisor contact information, legal documents, monthly bills, and emergency contacts — so adult children can step in quickly if needed. Agree on who would help, when they would step in, and what authority they would need.
3. Get the legal basics in place early: A conversation about money should include whether important documents are in place, including a will, power of attorney, healthcare power of attorney and any beneficiary designations. The goal is to reduce confusion, family stress, and delays later.
4. Share lessons learned across generations: Older savers can pass on the habits that helped them most — sharing tips related to living within their means, saving consistently, avoiding unnecessary debt, planning for emergencies, and thinking long term. Adult children can also highlight the financial challenges they may be facing. Parents are likely to have great advice or lessons learned that can benefit their younger loved ones today.
5. Make it an ongoing conversation, not a one-time event: The best family money talks are honest, respectful, and repeated over time. End the discussion with clear next steps: what documents to gather, what decisions need follow-up, and when to check in again.

For more insights on this survey data, see our infographic.

Nationwide’s eleventh annual Advisor Authority study, powered by the Nationwide Retirement Institute® explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.

About Advisor Authority: Methodology 
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 528 advisors and financial professionals and 2,012 investors ages 18+ with investable assets (IA) of $10K+, January 15-February 6, 2026. Among the investors, there were 1,041 with a financial professional, 179 Gen Z (age 18-29), 605 Millennials (age 30-45), 482 Gen X (age 46-61), and 746 Baby Boomers and older (age 62+).

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within ± 4.3 percentage points using a 95% confidence level. For investors data is accurate to within ± 2.98 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.  For complete survey methodology, including weighting variables and subgroup sample sizes, please contact news@nationwide.com.

About The Harris Poll
The Harris Poll is one of the longest running surveys in the U.S tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.

Business Owners are Underutilizing Advisors
Despite the complexity of today’s business landscape, only 24% of small and mid-market business owners sought guidance from a financial professional in the past year in response to current economic conditions, and only about one-fifth met with their current advisor in the past year to protect their business against future risk. Yet, about one in four say advice from a financial advisor would give them peace of mind.

“Too many business owners are trying to navigate today’s challenging environment without professional financial advice,” said Juan José (JJ) Pérez, SVP of Strategic Customer Solutions for Nationwide Financial. “The beginning of the year is a great time for advisors to proactively engage current and potential business owner clients, meeting them where they are to address the challenges keeping them up at night.”

Top 10 Opportunities for Advisors to Support Business Owners in 2026
Nationwide’s survey identified several areas where advisors can make an immediate impact. Small and mid-market business owners shared the top ten topics they would like to discuss with a financial professional:

1. Inflation
2. Economic uncertainty
3. Financial risk management strategies for their business
4. High interest rates
5. The business owner’s personal retirement
6. Access to credit
7. Supply chain disruptions
8. Employee retirement plan offerings
9. Succession planning
10. Potential employee voluntary benefits offerings

“Advisors can support business owners in a variety of ways, starting with helping them stay calm and focused on their long-term strategies in a volatile business environment,” Pérez said. “They can also provide context on the markets and economy, strategies for managing business challenges, or share new solutions to support needs like access to credit, succession planning and enhanced employee benefits.”

Protecting Business Owners’ Personal Retirement
The survey revealed that some owners are sacrificing personal financial security to keep their businesses afloat, with 14% reducing their retirement savings in the past year and 13% tapping into personal retirement funds to support their business. Nearly one-third of small business owners and nearly one-fifth of mid-market business owners say they would cut their own pay before cutting employee benefits.

“Working with a business owner client can present two important opportunities for advisors – supporting their business as well as their personal financial plan. Advisors can play a critical role in helping these clients balance the needs of their business today with their personal long-term financial security,” Pérez said.

Enhancing Employee Benefits
Many business owners voiced concern about challenges attracting and retaining talent. More than one fourth (27%) of business owners say attracting and retaining skilled employees has been a top workforce challenge over the past 12 months and four in ten (41%) small and more than half (57%) of mid-market business owners report attracting and retaining employees as a top business challenge when looking ahead to the next 12 months.

As a result, many are interested in talking about new employee benefit options for their business, with one in five (20%) saying that improving employee benefits is one of their biggest business opportunities over the next 12 months. A significant majority of business owners (56% small; 79% mid-market) are interested in offering voluntary benefits to enhance their benefits package.

“Whether it’s finding ways to fine tune retirement plan offerings or adding new benefits that will resonate with their employees, advisors can help their clients develop cost effective strategies to attract and retain the talent they need to be successful,” Pérez said. “This could include easy opportunities such as adding voluntary benefits like pet insurance, which pass the cost to employees at no expense to the business. Advisors who don’t specialize in employee benefits should consider partnering with 401(k) or benefits brokers within their firm or network to create referral partnerships to address the diverse needs of business owner clients as a team.”

Managing Rising Healthcare Costs
Healthcare costs are rising, and so are the costs of providing health insurance to employees, with six in ten (61%) business owners surveyed citing this as a top challenge over the next 12 months. Despite this harsh reality, 46% of small and 78% of mid-market business owners report increasing or planning to increase health insurance coverage levels for employees. Many are considering a shift to self-insuring their employee health plan in the next 12 months, including 15% of small and 29% of mid-market business owners.

“Self-insurance is a great way for business owners to reduce costs,” Pérez said. “Beyond helping them navigate this transition, our survey highlights the need for advisors to bring solutions like medical stop-loss insurance to the table to protect business owner clients from the risk of catastrophic health claims.”

Learn more on the Nationwide Advisor Advocate Blog.

Methodology
Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online survey 400 U.S. small business owners, 400 mid-market business owners from November 10–December 1, 2025.

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According to a new survey from Nationwide, a staggering 58% of Millennials feel forced to choose between homeownership and retirement security, with 46% believing mortgage or home equity loans pose the biggest threat to achieving a secure retirement.

While mortgage rates did reach a peak earlier in the year, they have dropped significantly. This dip is largely due to Federal Reserve actions, with the average 30-year fixed mortgage rate recently reported at a three-year low of 6.13%. However, according to Nationwide’s Office of Economics, it’s expected that poor housing affordability will continue to keep many potential buyers on the sidelines into 2026.                                                                    

“Millennials are navigating their prime earning years amid a financial landscape marked by volatile markets, high interest rates and shifting economic norms. These challenges are not only impacting their ability to build long-term wealth, but affecting key life milestones like homeownership and retirement planning,” said Juan José Pérez, president of Nationwide Corporate Solutions. “In times like these, partnering with a trusted financial advisor is going to be critical, helping you create personalized, goal-based strategies to manage risk, build your savings and prepare for major life events with confidence.”

The good news? The complexity of today’s financial landscape has driven Millennials to seek professional guidance at unprecedented rates. Of the 45% of Millennial investors who work with an advisor or financial professional, three-fourths (75%) began doing so in the last year, according to Nationwide’s survey.

While immediate challenges like housing costs are important to address, advisors are helping their Millennial clients take a longer view to prepare for retirement too, said Perez. They are talking to clients about Social Security and healthcare costs, with 35% saying the uncertain future of government support programs pose the most immediate challenge to clients’ retirement portfolios and 82% saying healthcare costs are a significant factor in Millennial clients’ ability to plan for retirement. That’s a stark contrast from the 6% of Millennial investors who consider a lack of Social Security funds a challenge to preparing for retirement and the 13% who cited healthcare costs as an obstacle, according to Nationwide’s survey.

“Our survey data shows Millennials benefit significantly from advisors’ long-term perspective on retirement planning risks,” said Perez. “Partnering with a good financial professional can help you save for shorter-term goals – like buying a house – while layering that with preparing for longer-term challenges. Talk with your advisor about solutions that can provide guaranteed income in retirement, like annuities, to help you build confidence in your savings strategies so you can go after both homeownership and a secure retirement.”  

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.

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10/2025

Whereas previous generations used homeownership as a tool to build wealth, many Millennials (investors ages 29-44) are struggling to afford housing and view it as a challenge to their retirement savings plan. That struggle is causing a negative view of retirement attainability in general – more than a third (35%) of Millennials cite rising housing costs as the biggest obstacle to their retirement readiness, and 46% believe mortgage or home equity loans pose the biggest threat to achieving a secure retirement.

The impact of the housing dilemma is immediate and measurable: 60% of Millennials have adjusted their retirement plans at least some since the start of 2025 in response to rising housing costs. This housing-retirement tension represents a fundamental departure from traditional wealth-building strategies, forcing Millennials to reimagine how they’ll achieve financial security in retirement without relying on real estate appreciation.

Without access to wealth through housing, Millennials are turning toward contribution plans early in their retirement journeys. Half (50%) of this cohort opened retirement accounts, such as 401(K)s or IRAs, and a quarter (22%) opened brokerage accounts to begin planning for retirement. The shift towards contribution plans also looks like more than just a temporary focus for this generation. Nearly three in ten (28%) working Millennials say they plan to contribute more to their 401(k) or employer-sponsored defined contribution plan over the next 12 months, and 23% say they plan to contribute the maximum amount eligible for an employer match.

Despite these actions, Millennials are worried about how long their savings will last in retirement. More than a fifth (22%) say they are concerned their savings won’t last more than 14 years, and one in ten (10%) say their retirement savings are already dwindling. 

“Millennials are navigating their prime earning years in a financial landscape marked by volatile markets, high interest rates and shifting economic norms. These challenges are not only impacting their ability to build long-term wealth but also key life milestones like homeownership,” said Juan José Pérez, president of Nationwide Corporate Solutions. “While it’s great to see Millennial investors tapping into the benefit of retirement accounts, partnering with a trusted financial advisor can help them build on those savings, creating personalized, goal-based strategies to manage risk and prepare for major life events with confidence.”

As Millennials Embrace Professional Advice, Advisors Are Addressing their Blind Spots

The complexity of today’s financial landscape has driven Millennials to seek professional guidance at unprecedented rates. Of the 45% of Millennial investors who pay to work with an advisor or financial professional, three-fourths (75%) began doing so in the last 12 months. However, the surge in professional relationships reveals a critical gap between Millennial concerns and advisor perspectives.

While Millennials focus on immediate challenges like housing costs, advisors take a longer view. Only about one in ten (9%) advisors say housing prices and mortgage rates pose a long-term challenge to their clients’ retirement portfolios. Eight in ten (82%) advisors, however, indicate healthcare costs are an extremely/very significant factor in their Millennial clients’ ability to plan for retirement. Additionally, 35% of advisors indicate the uncertain future of government support programs (Social Security, Medicare, Medicaid) pose the most immediate challenges to clients’ retirement portfolios.

The disconnect is striking: only 13% of Millennial investors cite healthcare costs as an obstacle, and 6% consider a presumed lack of Social Security funds to be a challenge to preparing for retirement, suggesting Millennials can benefit significantly from advisors’ long-term perspective on retirement planning risks.

“It’s great to see more Millennials turn to financial professionals, and healthy for advisors to help them see beyond short-term financial goals. However, our survey data shows a disconnect, highlighting an opportunity for advisors to take a step back and ensure they are listening to Millennials’ goals and addressing their concerns before offering solutions – whether those solutions are for short-term or long-term life events,” Pérez said.

When working with Millennials, advisors should note they may be ready for more sophisticated long-term investment strategies, with six in ten (61%) Millennials saying they are likely to put part of their portfolio in an annuity or other solution that provides guaranteed income given the events of the last 12 months.

“Saving for short-term goals, like buying a house, is important, but layering that with preparation for longer-term challenges remains imperative,” said Pérez. “Advisors who can establish relationships with Millennial clients now have a tremendous opportunity to grow their practices, as this generation is just starting to build meaningful savings and looking for a partner to help guide them on that journey.”

The Nationwide Retirement Institute offers resources to help advisors facilitate conversations with Millennial clients.

For more insights on this survey data, see our infographic.

Nationwide’s 11^th annual Advisor Authority study, powered by the Nationwide Retirement Institute®, explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.

About Advisor Authority: Methodology

The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 510 advisors and financial professionals and 2,007 investors ages 18+ with investable assets (IA) of $10K+, August 19-September 2, 2025. Among the investors, there were 667 Millennials (age 29-44).

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within ± 4.3 percentage points using a 95% confidence level. For all investors data is accurate to within ± 2.8 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact news@nationwide.com.

About The Harris Poll

The Harris Poll is one of the longest running surveys in the U.S tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.

The new distribution partnership will provide Nationwide with access to Integrity’s network of financial professionals and broaden Integrity’s diverse portfolio with Nationwide Smart Credit, a digital and streamlined SBLOC that unlocks the value of investors’ non-retirement portfolio without disrupting their investment strategy.

Key features of Nationwide Smart Credit include:

• Rapid speed to cash: Line requests processed in just hours or days versus weeks.
• High advance rate: The values allowed for equities, bonds, cash and other securities exceed those of many other lenders.
• Lower interest rates: Using a Secured Overnight Financing Rate (SOFR) based spread, interest rates are below standard alternatives.
• Lower minimum line amounts: A competitive minimum line amount of $25,000 allows advisors to serve a wider client base.
• End-to-end technology: A fully automated, easily accessible process from origination through the life of the line, including a self-service client portal.

“Integrity is a highly respected and well-known firm with culture, values and business goals that align closely with Nationwide. We’re excited to partner together to create opportunities for both of us to deliver valuable solutions to more customers,” said Juan José (JJ) Pérez, president of Nationwide Corporate Solutions. “This partnership demonstrates our commitment to offering a broad suite of solutions that enable advisors and financial professionals to provide more options to meet the specific needs of their clients.”

With an extensive network of wealth advisors across all 50 states, Integrity provides access to comprehensive capabilities within partner affiliates to expand integrated solutions. As part of their holistic approach to life, health and wealth protection, they offer end-to-end innovative technology and resources designed to help advisors work more efficiently and anticipate consumer needs. Integrity is also a leader in insurtech, offering a scalable, cloud-based technology suite that helps humanize and improve the insurance and financial services experience for everyone.

“Together, Nationwide and Integrity are offering business owners and consumers the ability to remain nimble when cash is needed, whether it’s taking advantage of an opportunity, making a strategic business decision or fulfilling an unexpected financial obligation,” said Craig Walling, president of Integrity Wealth. “Clients gain confidence and peace of mind knowing they have a competitive and seamless option available from their trusted advisor or agent who already understands the full spectrum of their financial wellbeing. Competitive rates, faster speed to cash and lower minimum line amounts show that Nationwide and Integrity are truly keeping the borrower’s needs top of mind. This partnership is another way Integrity is reshaping the often-siloed services of insurance and finance into a more holistic picture that addresses a lifetime of client needs.”

In addition to providing advisors with a simple SBLOC that makes accessing funds easier for their clients, Nationwide is also helping them demonstrate the value of SBL as a solution with an innovative cost comparison calculator. The calculator is available to all financial professionals in the market, providing quick side-by-side comparisons for clients who are seeking smart solutions for cash, whether they are looking for a way to pay for an unexpected expense or a personal goal.

Debra Griffin, vice president of Nationwide SBL, added, “As a company dedicated to making access to cash simpler for both advisors and their clients, we’re thrilled to partner with Integrity to provide advisors with both solutions and tools that can help address their clients’ liquidity needs.”

To learn more about Nationwide Smart Credit, visit www.nationwidefinancial.com/smartcredit.

About Integrity
Integrity, headquartered in Dallas, Texas, is a leading distributor of life and health insurance, and provider of innovative solutions for wealth management and retirement planning. Through its broad partner network of agents and advisors, Integrity helps millions of Americans protect their life, health and wealth with a commitment to meet them wherever they are — in person, over the phone and online. Integrity’s proprietary, cutting-edge technology helps expand the insurance and financial planning experience for all stakeholders using an omnichannel approach. In addition, Integrity develops products with carrier partners and markets them compliantly through its nationwide distribution network. Providing best-in-class service to their clients and consumers is at the center of Integrity’s holistic approach to life, health and wealth protection. The company and its partners focus on helping families and individuals prepare for the good days ahead, so they can make the most of what life brings. For more information, visit www.integrity.com.

The majority of small business owners (72%) and mid-market business owners (51%) rate the current condition of the U.S. economy overall as 'poor' or 'fair,' with inflation topping their list of concerns at 61%. Following closely behind are worries about the upcoming U.S. presidential election (49%), high interest rates (49%), and supply chain disruptions (40%).

Despite these and other economic uncertainties, many U.S. small and middle market business owners have a brighter perspective when considering their own businesses, with 51% of small business owners and 73% of middle-market business owners rating the economic environment for their own business as 'good' or 'excellent.'

Employees placing demands on businesses amid economic challenges
In addition to macroeconomic concerns, business owners face pressure from workers who are experiencing economic strains and demanding more from their employers. In the last six months, business owners have experienced employees:

• Asking for better compensation (37% - all owners; small - 34%; mid-market - 39%)
• Asking for more or better benefits (32% - all owners; small - 25%; mid-market - 40%)
• Leaving for better paying jobs (28% - all owners; small – 22%; mid-market – 35%)

“Business owners have a lot to navigate right now, from macroeconomic anxieties to increasing demands from employees as they manage many of the same challenges. What’s clear is owners aren’t taking it on the chin; rather, they’re rolling up their sleeves to improve the operational strengths of their firms,” said Russ Johnston, president of Business Insurance at Nationwide. “As part of that process, business owners should consult with industry-specific insurance partners to assure their commercial policies and risk mitigation strategies are keeping up with their needs now and in the future.”

The research found business owners adopting a proactive, hands-on approach to improve their company’s resiliency and meet the evolving needs of employees. They report implementing measures to mitigate risk and handle unforeseen circumstances, such as:

• Proactively planning for potential crises (small - 53%; mid-market - 66%)
• Implementing or updating their business continuity plan (small - 41%; mid-market - 63%)
• Making structural repairs or improvements to their building/property (small - 31%; mid-market - 59%)

Most business owners feel prepared to navigate potential disruptions to their businesses (small – 65%; mid-market – 75%), including from events like a weather event or financial disruption.

Furthermore, business owners say they are investing in their workforce by providing additional benefits, such as increased compensation and improved retirement offerings. More than half (59%) of small and 80% of mid-market business owners are planning to or have already increased wages. About one third (32%) of small and 74% of mid-market business owners are planning to or have already improved retirement offerings.

Small business owners fall behind on retirement and succession planning
Most business owners feel they are on track when it comes to being financially prepared for retirement. Nevertheless, they also report that within the last 12 months, they have pushed back their retirement timeline because they’re worried that they haven’t saved enough money to provide the income they will need in retirement (small – 57%; mid-market – 32%) or have had to reduce the amount they save due to current economic conditions (small – 40%; mid-market – 20%). Meanwhile, over 40% of all respondents reported that they are delaying retirement because they enjoy working.

When they are ready to retire, not all business owners have a clear succession plan in place. Only 30% of small business owners have a succession plan compared to 62% of mid-market business owners. Among those small business owners without a succession plan, almost one in four (24%) say they plan to close the business permanently when they retire.

The business owner journey also provides useful lessons for the entrepreneurs of the future and younger owners. When asked what advice they would most want to give their younger selves about planning for retirement, business owners were clear: First, start planning earlier (small – 52%; mid-market – 39%); and second, save more consistently (small – 47%; mid-market – 42%).

"Recognizing the challenges small business owners face in retirement and succession planning is vital. Economic uncertainties have led many to delay retirement and reduce savings, highlighting the need for early planning and consistent saving,” said  Juan José Pérez, President of Nationwide Corporate Solutions. “Additionally, a significant number of business owners lack clear succession plans, with too many intending to close shop when they retire. With proper planning, the business, owner and its employees could be better served financially through options such as a sale or other form of transition with the help of the right partner. It’s critical that we support owners’ ability to plan proactively – with the help of a financial professional –to ensure a stable future for our business community.”

More findings from Nationwide's 2024 Economic Impact survey can be found here.

Methodology
Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online survey 400 U.S. small business owners, 400 mid-market business owners and an oversample of business owners ages 60-65 nearing retirement (n = 100) from May 1-15, 2024.

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For example, about a third (36%) of older business owners report they have pushed back their planned retirement date in the past year. The survey revealed several financial reasons why they have made this decision, including:

• They’re worried they don’t have enough money saved for the income they need in retirement
• They feel they won’t be able to live the life they want in retirement
• They had to reduce the amount they have saved due to economic conditions
• They or a family member have costly health-related expenses

For some older business owners, the next horizon isn’t even on their radar. About one-fifth (19%) of respondents aren’t even thinking about retirement right now.

The succession planning gap
Given the percentage of older business owners that have had to delay their retirement, it’s no surprise that succession planning is also a challenge. More than one-third (35%) of respondents said they don’t have a succession plan but are currently developing one. Another 16% said they don’t have one in place and don’t have plans to develop one.

The impact of not having a succession plan can be catastrophic for the business. Those who don’t have a succession plan say they intend to sell their business to a family member or trusted employee, close the business and liquidate assets, transition ownership to a co-owner or business partner or explore the possibility of selling to external buyer or investor.

“Business owners have worked hard to build their businesses, but they need help transitioning leadership to leave a lasting legacy,” said  J.J. Pérez, president of Nationwide Corporate Solutions. “Advisors can help them place a value on the business and consider the financial implications of selling it or transitioning it to a family member, partner, employee or investor. A strong succession plan may also help them boost confidence in their ability to retire and achieve financial security.”

The important role of advisors
The older business owners surveyed value outside financial advice for their business. Nearly half (45%) of respondents say they currently work with a financial advisor or planner and about two-thirds (65%) said they either have met with one in the past six months or plan to do so in the next six months. Additionally, 32% say they currently work with a third-party administrator for employee retirement benefits and 30% say they currently work with an employee benefits consultant.

Those with a financial advisor or planner for their business say they are most likely to talk to them about succession planning, inflation, access to capital, high interest rates, employee benefits, and economic uncertainty.

Those who don’t work with a financial advisor or planner say it’s because it costs too much, they don’t need advice because they can handle their finances themselves, they are too busy, or don’t know where to go to get advice.

“Our survey sheds light on several ways a financial professional can help older business owners – both with personal retirement planning and supporting their business,” said Pérez. “Understanding the perspectives of this group can help advisors more effectively engage new and existing business clients by meeting them where they are with timely advice and solutions.”

Business owners interested in addressing employee benefits and access to capital
Top challenges older business owners expect in the next 12 months include the rising cost of employee benefits and attracting/retaining employees. In the past six months they report dealing with employees asking for better compensation, more or better benefits or leaving for companies with better benefits. As a result, more than four in 10 (44%) have already or are planning to improve retirement plan offerings for their employees.

Some have already taken or are considering actions that could be potentially detrimental to their long-term financial security, including:

• Using personal savings to support their business (51%)
• Applying for a personal loan to help support the business (44%)
• Canceling or postponing a major business investment (51%)

“Beyond personal retirement planning, there’s an opportunity for financial advisors to drive conversations about employee benefit offerings and access to capital,” Pérez said. “Advisors have the opportunity to help business clients consider solutions that may help them attract and retain employees and avenues for accessing capital that may help them avoid taking on unnecessary personal risk when it comes to running their business.”

Preparing for economic disruption
There is anecdotal evidence the business disruption most business owners experienced during the pandemic may have led to a more proactive approach to preparing for the unexpected. More than seven in 10 (73%) older business owners feel at least moderately to extremely prepared to navigate the next major disruption to their business. They are taking proactive steps to manage risk, including:

• Planning for potential crises
• Implementing or updating business continuity plans
• Investing in cybersecurity
• Performing a risk management audit
• Expanding their list of risk management partners

“It’s encouraging to see business owners being proactive and feeling confident in preparing for the unexpected,” Pérez said. “I encourage advisors to position themselves as a risk management partner who can help business clients think about potential financial disruptions and consider protection solutions, new avenues to access emergency capital – and even identify other partners to bring to the table who could contribute to a broader risk management strategy for their client.”

View an infographic summarizing survey data

Survey Methodology
Edelman Data & Intelligence conducted a national online opinion survey from May 1-15, 2024 among 400 small business owners and 400 medium business owners including an oversample of 100 businessowners ages 60-65.

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“My stepmom said, ‘Something has happened, and we're really sorry, but [Giles] got trapped under the couch.’ When they put the couch away, they didn't realize that he was under there and … the mechanism bopped him in the face pretty good.” Recounts Reid, “Luckily, we have a wonderful vet hospital just around the corner from us, so we were able to take him right there. Fortunately, it wasn't too bad. He did need some stitches … but he was the model patient.” 

Giles’s situation was enough to earn him Nationwide’s 2023 Hambone Award for most unusual pet claim.(Read more about Giles story).  

Fortunately, Kaitlyn’s workplace offered Nationwide pet insurance as a voluntary benefit. The family decided to invest in pet health insurance after a costly trip to the veterinary hospital one Christmas Eve spurred them to seek coverage for future unexpected events. Their Nationwide pet insurance plan covered Giles’s sofa bed mishap injuries. 

Rising costs increase need for coverage 
Stories like Giles’s are far too common to Nationwide, which insures more than 1.2 million pets. That’s why the team encourages pet parents to consider pet insurance. 

“Across the country, pet care costs are rising, and many families are choosing pets and breeds that require greater medical care," said Melissa Lovely, Nationwide’s vice president of sales. “Per the U.S. Bureau of Labor Statistics, inflation in the cost of veterinary services has risen from historical averages of 3-5% per year to 9-11% per year during the past two years. This amplifies the need for families to ensure they are well-protected in times of need.” 

Extended care costs can add up 
Pet insurance isn’t just for emergencies. Conditions like skin allergies and heart disease take multiple veterinary visits, tests and medications to treat. Sometimes those conditions may require extended care – and those costs can add up! 

For a list of the most common conditions that prompt veterinary visits and the costs associated with them, click here.  

No such thing as “one size fits all” 
Despite the rising costs of pet health care, many pet parents may be hesitant to purchase insurance given their economic situation. Nationwide has developed an option for those situations.  

“No two pets are alike and so ‘one-size-fits-all’ pet insurance plans don’t always make sense for every pet,” said Clarissa Klomparens, Nationwide’s Associate Vice President of Pet Product. “Nationwide developed our modular pet insurance product to allow pet families to customize the pet insurance plan to meet their particular needs.”  

Buy through your employer 
In addition to a mix of protection solutions available to fit the varying needs and budgets of general consumers, Nationwide offers a workplace product designed exclusively to be offered as a voluntary benefit. The voluntary benefit space continues to be a strong area of growth with many  Fortune 500 companies and thousands of organizations across the U.S. offering Nationwide pet health insurance as a voluntary benefit.  

Click here to find out if your company or membership group offers Nationwide pet insurance as a voluntary benefit.  

Prevention perks for your pet included 
Nationwide also offers other perks benefits like VetHelpline®, which offers Nationwide pet insurance members unlimited access to phone and video consultations with certified veterinary experts at no additional cost. Nationwide’s Pet HealthZone® is designed to help pet parents uncover the increased health risks their pet may face, along with lots of fun information about how to love and care for them. 

Also, Nationwide’s Pet RxExpress program gives members discounts on pet medications at Walmart and Sam's Club pharmacies, as well as a 10% discount on all Petco veterinary services. 

“We believe pet parents should have the flexibility to choose the level of veterinary care that aligns with their resources, values, and the needs of their pets,” says Dr. Jules Benson, Nationwide’s Chief Veterinary Officer. “By offering services like Pet RxExpress, the VetHelpline, and the Pet HealthZone, we’re broadening opportunities to meet pet families where they are, offering simple, convenient ways to support their pets’ health and wellbeing.” 

Backed by the power of Nationwide 
When you purchase a Nationwide pet insurance policy, you’ll know that the product is backed by an insurance and financial services company that has been serving its customers for nearly 100 years. Nationwide has been a leading pet insurer since it started offering the product 40 years ago.  

“Despite the recent headwinds the pet insurance industry has been facing, Nationwide is unwavering in its commitment to our pet insurance customers and business,” said J.J. Pérez, Nationwide’s President of Corporate Solutions. “We will continue to take steps to help us navigate these challenges so we can deliver on our promise to provide exceptional service and extraordinary care for our partners, their customers and their pets – now and in the future.”

For more information about Nationwide pet insurance and to find a plan that works for you, visit www.petinsurance.com. 

Why offer pet insurance as a benefit 
Coming out of the pandemic, more households than ever are facing the costs of care and prevention for their furry companions. It’s one reason why many employers are considering pet insurance as a benefit for their employees.  

“Across the country, pet care costs are rising, and many families are choosing pets and breeds that require greater medical care," said Melissa Lovely, Nationwide’s vice president of sales. “Per the U.S. Bureau of Labor Statistics, inflation in the cost of veterinary services has risen from historical averages of 3-5% per year to 9-11% per year during the past two years. This amplifies the need for families to ensure they are well-protected in times of need.” 

Nationwide is a leading provider of pet insurance, providing care and prevention for more than 1.2 million pets. The company has been a trusted partner of businesses of every size looking to offer pet insurance as a voluntary benefit, with many Fortune 500 companies and thousands of organizations across the U.S. offering Nationwide’s pet health insurance workplace product. 

“We’ve found that employers and pet owners really find assurance in working with a trusted and respected brand to provide for their pet protection,” said David Hurley, director of voluntary benefits for Nationwide. “When people find out that Nationwide protects pets, the enthusiasm for pet insurance skyrockets.” 

Providing peace of mind for employees everywhere 
Pet insurance isn’t just for emergencies. Conditions like skin allergies, stomach issues, infections and heart disease take multiple veterinary visits, tests and medications to treat. Sometimes those conditions may require extended care – and those costs can add up! That’s why pet insurance as an employee benefit is becoming more popular.   

Prevention perks for your pet included 
Nationwide also offers other perks like VetHelpline®, which offers Nationwide pet insurance members unlimited access to phone and video consultations with certified veterinary experts at no additional cost. Nationwide's PetHealthZone® is designed to help pet parents uncover the increased health risks their pet may face, along with lots of fun information about how to love and care for them. 

Also, Nationwide’s Pet RxExpress program that gives members discounts on pet medications at Walmart and Sam's Club pharmacies, and our 10% discount at all Petco veterinary services. 

“We believe pet parents should have the flexibility to choose the level of veterinary care that aligns with their resources, values, and the needs of their pets,” says Dr. Jules Benson, Nationwide’s Chief Veterinary Officer.“By offering services like Pet RxExpress, the VetHelpline, and the Pet HealthZone, we’re broadening opportunities to meet pet families where they are, offering simple, convenient ways to support their pets’ health and wellbeing.” 

Backed by the power of Nationwide 
When you provide your employees access to a Nationwide pet insurance policy, you’ll know that the product is backed by an insurance and financial services company that has been serving its customers for nearly 100 years. Nationwide has been a leading pet insurer since it started offering the product 40 years ago.  

“Despite the recent headwinds the pet insurance industry has been facing, Nationwide is unwavering in its commitment to our pet insurance customers and business,” said  J.J. Pérez, Nationwide’s President of Corporate Solutions.“We will continue to take steps to help us navigate these challenges so we can deliver on our promise to provide exceptional service and extraordinary care for our partners, their customers and their pets – now and in the future.”  

For more information about Nationwide’s workplace pet insurance product and how to make it available to your employees, visit www.petinsurance.com. 

There’s no denying that generative artificial intelligence (AI) is changing the world as we know it. It can create content in seconds, as well as generate innovative ideas, helping us quickly and efficiently meet customer needs while potentially providing a better experience. It’s also dominated the news cycle since widespread consumer adoption began to accelerate about a year ago. Most recently, I was fascinated by news of the recent shakeup at OpenAI involving their CEO. 

As the generative AI revolution continues to seep into more facets of our everyday lives, it’s natural for business leaders to view it with curiosity and maybe even a little trepidation. Many are beginning to consider how they can best utilize it while maximizing the advantages it offers and minimizing the risks. In fact, according to a survey from my company, Nationwide, more than 7 in 10 mid-market business owners and 30% of small business owners are considering using AI technology to help make strategic business decisions. 

However, there remains a gap between the potential and the reality of generative AI adoption for many business leaders. Reasons for this may include lack of resources, resistance to change, mistrust of this new technology or even concerns about sharing proprietary information with the world (for those with this last fear, there are platforms that offer enterprise security). 

While the benefits of generative AI do not come without risks, as business leaders, we need to begin experimenting with it to remain competitive. My own company shares that viewpoint. We have been investing in technology and data analytics infrastructure for well over a decade and we’re now developing ways to securely leverage generative AI to augment the work of our team. 

Whether you’re leading a Fortune 100 company or a sole proprietor, there are so many ways you can make generative AI work for you. Here are a few tips to help business leaders think about and test generative AI in smart, safe ways, based on my experience. 

1. It starts at the top. 

Generative AI can help businesses unlock new possibilities, enhance creativity and differentiate themselves from competitors—but it has to start with the C-suite. Business leaders need to be advocates, setting up governance and structure for these powerful new tools to be used effectively and ethically. 

For example, we established a committee of leaders from various areas of the company to lead our AI engagement and balance innovation with responsible development. Investing in the right tools and the right training for employees will also be critical for long-term success. 

2. Keep humans in the loop. 

Generative AI can help businesses achieve a “bionic business model” by leveraging the best of both worlds: the speed, scale and efficiency of machines, with the empathy, judgment and intuition of humans. In fact, according to recent data from Insight, nearly three-quarters of business leaders believe AI implementation will improve their employees’ productivity. 

However, generative AI will not replace human intelligence; it will complement it. To work effectively, it requires a human-in-the-loop approach, where people and machines collaborate to ensure quality, accuracy and ethics. 

For example, one way we’re implementing the bionic model is by enabling our call center employees to automatically pull up specific product information needed to answer client questions quickly and efficiently. Some AI applications can synthesize meeting discussions for you in real time, recognizing participant voices to quickly identify action items and assign them to the correct person after the meeting. That makes it much easier for a team to track follow up actions and share relevant information with others. 

By allowing your employees to harness the power of generative AI, you’re giving them a virtual assistant to automate tedious or time-consuming tasks—helping your people focus on delivering a better customer experience or developing innovative new ideas to grow your business. 

3. Iteration is key. 

Generative AI is not a one-size-fits-all solution, but a customizable and adaptable one. It is an evolving technology that requires constant learning and improvement. Businesses should experiment with different models, data sources, parameters and outputs to find the best fit for their specific uses and goals, monitoring and measuring the performance and impact on their business outcomes. 

Business owners should also stay updated on the latest developments and trends in generative AI. According to my company’s survey, 53% of mid-market business owners are already familiar with ChatGPT, and 67% trust it to provide advice related to their business operations. And a McKinsey survey found that 22% of respondents are already using generative AI regularly in their work. 

As more generative AI advancements are rolled out, business leaders should continue seeking feedback from customers, employees and partners on how to improve its applications. They should also be open to collaborating with other businesses and experts in the field to share best practices and learn from others. 

Generative AI is poised to help businesses of all sizes address some of the most pressing challenges and opportunities they face in today’s competitive landscape. If used appropriately, it can help businesses provide more value and better service to their customers. The time is now to empower your team to begin thoughtfully testing AI and learning how it can make your business more efficient and effective. One thing is for sure: It’s likely your competitors are doing the same. 

 Originally published on Forbes Advisor. 

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Related news: 

• Nationwide is using digital technologies to make it easier to buy term life insurance 
• Financial advisors can help business owners prepare for the uncertainty 
• Q&A: Nationwide CTI Jim Fowler Talks Generative AI  
• A History of Nationwide’s AI Journey  

Just 19% of small business owners and 39% of mid-market business owners rate business conditions in the U.S. economy positively, down 8 points and 19 points, respectively, since September 2022.

Inflation, interest rates top of mind
Persistent inflation and rising interest rates continue to impact their businesses, with nearly three quarters of small and mid-size business owners citing inflation as their most significant challenge, up 11 points since September 2022.

• Increased interest rates are right behind with 62% of mid-market business owners and 50% of small business owners saying it’s a continued challenge (up 4 points and 15 points, respectively, from fall 2022).

Despite their grim views of the economy, most business owners (small-55%; mid-market-74%) are surprisingly optimistic about their own business operations.

• 74% of mid-market and 55% of small business owners rate their business conditions as good or excellent.

Returning to pre-pandemic practices
Business owners are even reversing some actions taken over the course of the pandemic, including:

Hiring more, laying off less:

• 21% of small businesses owners say they have hired more workers, up 8 points from the fall.
  • Only 6% of small businesses have laid off employees, a drop of 4 points from the fall.
• 42% of mid-market owners have hired new workers, an 18-point jump.
  • 18% of mid-market businesses conducted layoffs within the past 6 months, down 5 points from the fall.

Managing supply chain disruptions:

• 21% of small businesses say supply chain disruptions are among their biggest challenges, a drop of 8 points from the fall.
• 31% of mid-market businesses list supply chain disruptions as one of their biggest challenges, consistent with their responses from the fall.

Staying open longer:

• Only 10% of small business owners have reduced operating hours – down 7 points from the fall.
• 14% of mid-market owners have reduced operating hours, a decrease of 11 points.

These positive indicators demonstrate that business owners may be finding their footing in some areas as they continue to navigate inflation effects and rising interest rates.

• Cutting costs remains a top priority for business owners (63% small business; 49% mid-market) as they hedge where they can to minimize risk.

“Business owners are closely analyzing today’s economic uncertainty, but they’re also confident in their operations as they manage through the conditions to best meet demand and remain competitive,” says Russ Johnston, President of Business Insurance at Nationwide. “As business owners navigate the tight labor market to add staff, get back to traditional operating hours and explore cost-saving strategies, it is imperative that they review risk and ensure the business does not compromise on long-term protection.”

Lingering economic factors: bank failures and continued interest rate pressures
As business owners look ahead, they should also be diligent with their financial planning - especially as worries about the health of the banking system remain and interest rate uncertainty continues.

• The majority of business owners, small (71%) and mid-size (80%), are concerned about the health of American banking institutions following the recent bank failures. Almost 3 in 10 business owners have reevaluated where their business banks.
• Four in 10 small (46%) and mid-sized businesses (40%) feel the Federal Reserve should cut interest rates to ease pressure on the economy, while 13% and 23%, respectively, think the Federal Reserve should be more aggressive in raising rates.

These unknowns mean that businesses could be impacted yet again by heightening interest rates and be forced to halt hiring or lay off workers, reversing the progress they’ve made since emerging from the COVID economy.

“It's understandable for business owners to be focused on getting through today’s inflationary and recessionary environment. However, the past few years have taught us how crucial it is to hedge against risks and prepare for unforeseen threats,” said Juan José Pérez, President of the Nationwide Corporate Solutions organization. “Business owners have enough on their plates today, so we encourage them to partner with financial advisors and other risk management partners who can help them navigate today’s uncertainty and be prepared to take advantage of opportunities to grow their business when the recessionary environment eventually passes.”  

More findings from Nationwide's 2023 Economic Impact survey can be found here.

Survey methodology:
Nationwide commissioned Edelman Data & Intelligence to conduct a 15-minute quantitative online survey among a national sample of 400 U.S. small business owners and 400 mid-market business owners between March 30 and April 28, 2023. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.

The good news is Hispanic business owners are more likely than other businesses to be       open to seeking guidance about ways to make their business more resilient (94%) but nearly half (44%) are struggling to find the right partners to enhance their business risk management strategy.

“Hispanic Heritage Month is an opportune time for advisors and financial professionals to reflect on ways to better serve the Hispanic business community. Our survey data highlights an opportunity for them to build or strengthen relationships with this group, as well as business owners in general, by helping them plan for resilience,” said Juan José Pérez, President of Corporate Solutions at Nationwide. “The pandemic was a reminder to us all to prepare for the unexpected, and this group is looking for help to be ready for what’s next.”

Across the country, Hispanic Americans and five million Hispanic-owned businesses help contribute over $800 billion dollars to the U.S. economy each year. This growth is poised to accelerate as Hispanic entrepreneurs start businesses at three times the rate of the general population. 

“We have the opportunity to help educate Hispanic business owners across the country now that we better understand their needs. The future is bright for their business if they're able to use their limited resources and apply them correctly through investments, financial services, and securing and mitigating risk,” said Ramiro A. Cavazos, President & CEO of the USHCC.

Optimistic about their business, cautious about the economy
Seven in ten (69%) Hispanic business owners are somewhat or very optimistic about the future of their business, more so than their general market counterparts (56%). However, they don’t expect economic storm clouds to clear any time soon with only four in 10 expressing optimism about the future of the economy. This group continues to face challenges like soft demand (44%), increased input costs (77%), higher interest rates (81%), supply chain disruption (74%) and a tight labor market (60%).

Liquidity
Following tough sledding over the past couple years, more than half of Hispanic business owners (56%) are left with no cash reserves. Similarly, 48% of the total sample of business owners surveyed report they have burned through cash reserves following the pandemic.

“A great way for an advisor or financial professional to help business owners right now is to develop a strategy for securing capital when they need it to either invest in their business or keep the lights on the next time sales hit an unexpected slowdown,” Pérez said. “This could involve helping them build a stronger relationship with a bank or financial institution – or understanding solutions like Securities Backed Lending as a source of liquidity.”

Hiring challenges 
Seven in 10 Hispanic business owners (70%) are actively trying to grow their workforce, with three fourths (75%) having made changes in response to labor market challenges – the most common action being increased compensation (41%). Only 18% of Hispanic businesses have increased benefit offerings and more than half (55%) offer no benefits at all compared to 45% of the total sample of business owners.

“One of the best ways to guard against the risks threatening a business’ ability to attract and retain the best talent is by enhancing benefit offerings. Advisors and financial professionals are in a great position to bring these resources to the table,” Pérez said. “In some cases, business owners can do this with limited cost by passing the expense to the employee, who is happy to have access to a new benefit.”

Only 14% of Hispanic business owners worked with a consultant to explore new employee benefit offerings. Advisors can add value by connecting their clients with benefits professionals to address this opportunity.

Preparing for future risk 
Nearly nine in 10 (88%) Hispanic businesses have taken steps to prepare for future shocks to their business, a rate higher than the total sample of business owners (71%). Hispanic business leaders are taking actions like: 

• Reducing operating costs (55%)
• Building cash reserves (41%)
• Building a stronger relationship with a bank or financial institution (25%)
• Establishing a business line of credit or source of financing from which to draw from in future emergencies (25%)
• Diversifying revenue streams (43%)

“We see an emphasis on cost cutting as a major theme in our data,” Pérez said. “One way to control, and even lower, expenses in a risk management environment is to self-fund your employee health plan. Advisors and financial professionals can help clients think about this opportunity, including medical stop-loss solutions that protect them from the impact of large claim activity.”

Hispanic business owners have taken other risk management actions to prepare for future challenges, including:

• Enhancing company’s risk management strategy (18%)
• Conducting a formal risk assessment (14%)
• Creating a business continuity plan (28%)
• Creating a succession plan (19%)
• Purchasing business continuity or other insurance (6%)
• Building or strengthening relationships with risk management partners (9%) 

“Advisors and financial professionals can enhance the value they bring to clients by driving conversations about steps some of the business owners we surveyed have taken to become more resilient. Many of these activities involve no financial cost but can pay huge dividends for the business owner and the relationship,” Pérez said.

Struggling to find the right partners
Hispanic business owners were more likely than their peers to say they struggled to find the right partners to enhance their business risk management strategy (44% vs. 40%).  Less than one third (29%) worked with an advisor or financial professional to update their business investment strategy and only 14% worked with an advisor or financial professional to plan for business disruption. Only about one fourth (26%) worked with an insurance professional to ensure coverage is up to date compared to 34% of the general sample. Fewer than one in five (18%) worked with a technology professional to update their business’ cyber security strategy.

Taking action
“Advisors and financial professionals are in a perfect position to help business owner clients identify gaps in their plan for business resilience and recommend additional members for their risk management team,” Pérez said. “Leverage your professional network to identify the resources your clients need. Ask colleagues or other businesses you serve for recommendations to bring to the table.”  

To help business owners think about planning for resilience, Nationwide has created a risk management checklist that can serve as a discussion guide with advisors or financial professionals.

For more information on the findings of this survey, view this infographic or complete survey results.

Learn more about important considerations for advisors and professionals looking to expand their Hispanic client base.

Survey Methodology
This poll is part of a regular series of surveys of diverse small business owners developed by Reimagine Main Street in collaboration with network partners including the United States Hispanic Chamber of Commerce. The online survey was fielded from June 9 to July 6 using a convenience sample of small employers with up to 500 employees. The survey was available to respondents in both English and Spanish. Business owners were contacted by email using business owner lists cultivated by the Public Private Strategies Institute and the USHCC membership list. The national sample of Hispanic small business owners included 671 respondents. For more details on the sample, see link.

About USHCC
The United States Hispanic Chamber of Commerce (USHCC) actively promotes the economic growth, development, and interests of five million Hispanic-owned businesses that, combined, contribute over $800 billion to the American economy every year. The USHCC is America's largest small business advocacy group, representing more than 260 local chambers and business associations nationwide, and partners with hundreds of major American corporations. For more information, please visit ushcc.com. Follow us on Twitter @USHCC.

About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities, mutual funds and ETFs; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter

About Reimagine Main Street
Small businesses and their workers must rebound from the COVID-19 crisis so that communities thrive and the benefits ripple throughout the economy.  We are a multi-stakeholder, cross-sector initiative focused on advancing and uplifting innovative solutions via dialogue and data to ensure that MLK Boulevards, Cesar Chavez Ways, Chinatowns and Main Streets are at the center of our economic recovery. Reimagine Main Street is a project of the Public Private Strategies Institute. To learn more about our work, please visit www.reimaginemainstreet.org. Follow our work on LinkedIn, Facebook, and Twitter, we tweet with #ReimagineMainStreet.

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With a distinguished career spanning more than 20 years, Cole’s leadership over the past two years at Nationwide has been instrumental to the company’s success re-entering the PRT market. She helped develop the strategic direction for Nationwide’s PRT business, which achieved more than double its annual sales goal for 2021. Her team’s size has doubled in the past year based on the rapid sales growth.

“Since re-entering the PRT market, we have elevated and accelerated our people, processes and tools. As we strive to become an industry leader, supporting plan sponsors and members, Paula’s promotion is indicative of our commitment to our strategy and aggressive plans for growth,” said  J.J. Pérez, President of Nationwide Corporate Solutions. “PRT is a business we’re committed to for the long term. Under Paula’s leadership, our team takes advantage of Nationwide’s core competencies with some of the top talent in the industry, delivering on our promises with extraordinary care.”

Nationwide’s PRT business leverages nearly 100 years of annuity, defined benefits and risk management experience, as well as the company’s outstanding financial strength, to serve a legacy book with more than 500 contracts and 20,0000 annuitants, as well as 10,000 annuitants added since Nationwide’s 2020 PRT market re-entry, with a focus on personalized service and transition simplicity. In 2022, the business will expand capabilities to customize for plan needs, including asset-in-kind, cash balance and separate account transactions. 

In addition to her professional accomplishments, Cole serves as Vice President for Nationwide’s African American Women Associate Resource Group (AWARE). She is also an active leader in supporting colleagues through performance management and mentorship. She serves her local community as a member of the Board of Directors for Thurber House and as a District Activist leader for the National MS Society.

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These are among the latest findings from the sixth annual Advisor Authority Study powered by the Nationwide Retirement Institute®, reflecting the responses of more than 2,500 individual investors, advisors and financial professionals. Taking an in-depth look at Millennials (ages 24 to 39) with investable assets of $100,000 or more, Advisor Authority reveals that this expanding market of emerging investors has unique needs, faces complex challenges—and differs from the generations who precede them.

“Millennials have had more than their fair share of challenges when it comes to their finances, but these younger investors continue to defy stereotypes in unexpected ways—with a focus on long-term goals, a real discipline for planning, and the foresight to seek out an advisor or financial professional to make sure they stay on track,” said Craig Hawley, Head of Nationwide’s Annuity Distribution. “Even in a year where they’ve been hit hard by the pandemic’s impact, it’s clear they understand the power of planning to help protect their assets, and they’re already putting in the work now so they can shoulder the responsibility of retirement in the future.”

Challenged by the Past—Yet Planning for the Future
Millennials now make up over a third of the U.S. population, and are the most diverse and most educated generation so far². Yet, facing overwhelming student loan debt and challenges entering the job market has forced many to delay important life decisions from marriage, to having children and buying their first home.

But when it comes to their financial futures, year over year, more Millennials are taking action. Not only by having a plan for protecting their retirement and their assets, but also by working with an advisor or financial professional. In 2016, only 50% of Millennials said they had an advisor. A mere four years later, that number had grown to 75% in 2020—possibly a sign of increasing trepidation, as 84% said they could do all the right things to manage their finances, and still be blindsided by outside events.

“When it comes to outside events, the COVID-19 pandemic has had an outsized impact on Millennials—and that kind of uncertainty can make balancing current needs with planning for the future seem like a longshot for a lot of the investors in my generation,” said  J.J. Pérez, President, Nationwide Financial Corporate Solutions. “Flashing back to the Crash of 2008, it’s great to see that this time around, more Millennials than ever are seeking the help of financial professionals to put a holistic plan into place that will help them manage the pandemic’s impact, protect their assets now, and prepare them to reach their long term goals.”

Managing the Pandemic’s Impact
The COVID-19 pandemic impacted the financial decisions of Millennials (84%) somewhat more than Gen-Xers (80%), and substantially more than Boomers (67%). It also impacted their top financial concerns, driving considerable shifts in 2020. Protecting assets rose to Millennial’s number-one financial concern (29%) and losses in their portfolios due to the pandemic were a close second (27%). Generating reliable income during retirement rose to Millennials’ number-three financial concern, quadrupling to 21% in 2020 from just 5% in 2019.

Millennials were far more likely to say that being unable to meet financial obligations due to the COVID-19 pandemic (15%) was among their top financial concerns, compared to only 4% of Gen-Xers and 5% of Boomers. In response to the pandemic’s impact, Millennials were somewhat more likely to liquidate assets from their qualified retirement savings plans (13%) than Gen-Xers (5%) and much more likely than Boomers (2%). Millennials were also somewhat more likely to liquidate non-qualified investment accounts, such as stocks, bonds and mutual funds (10%) than Gen-Xers (6%) and much more likely than Boomers (2%).

This younger generation may be dealing with the repercussions of their outsized debt and meager savings for decades to come—especially when the pandemic is forcing them to liquidate assets and lock in losses, at the same time that it’s impacting their job prospects. In fact, Millennial investors were much more likely to experience a pay cut due to the pandemic (29%) than Gen-Xers (13%) or Boomers (5%). Millennials were also somewhat more likely to be laid off due to the pandemic (17%) than Gen-Xers (10%), and much more likely than Boomers (2%).

The Power of Planning to Protect Assets
While protecting assets was their number-one financial concern, 88% of Millennial investors said that having a plan for their investments helps them feel in control, even if they can’t plan for everything. To confront an extreme market drop and ongoing volatility, Millennials were much more likely to have a strategy to protect their assets against market risk in 2020 (71%) than they were in 2018 (53%). In fact, in 2020 Millennials were also somewhat more likely than Gen-Xers (62%) and Boomers (63%) to say they had a strategy in place to protect their assets against market risk.

Of those investors who had a strategy, Millennials were far more likely than Gen-Xers and Boomers to use a diverse range of solutions to mitigate market risk. Registered Index Linked Annuities (RILAs) were a top solution for substantially more Millennial investors (36%) than Gen-Xers (10%) and Boomers (4%). Millennials were also somewhat more likely to rely on liquid alternatives (36%) than Gen-Xers (21%) and much more likely than Boomers (17%). Likewise, Smart Beta ETFs were somewhat more likely to be used by Millennials (30%) than by Gen-Xers (14%) and far more likely than by Boomers (1%).

Notably, Millennials said they were much less likely to rely on traditional diversification for risk management (36%) compared to Gen-Xers (58%) and Boomers (66%). On the other hand, Millennials (72%) were somewhat more likely than Gen-Xers (61%) and far more likely than Boomers (36%) to choose an annuity over the next 12 months to protect against market loss as part of their holistic financial plans.

Preparing to Shoulder the Responsibility of Retirement
While they still have several decades before retirement begins, Millennial investors (81%) were just as likely as Gen-Xers (81%) and Boomers (80%) to have a strategy to help protect themselves against outliving their savings. Likewise, Millennials (78%) were somewhat more likely than Gen-Xers (75%) and nearly as likely as Boomers (82%) to have a strategy in place to generate guaranteed income in retirement.

As the retirement safety net frays, and the future of Social Security comes into question, among those who have a strategy to protect themselves against outliving their savings, it’s notable that both Millennials (42%) and Gen-Xers (49%) said they would be far less likely than Boomers (86%) to rely on Social Security.

With the knowledge that they’re expected to shoulder more responsibility for funding their own retirement, younger investors are open to other solutions. Millennials (75%) were somewhat more likely than Gen-Xers (69%) and far more likely than Boomers (44%) to choose an annuity over the next 12 months to protect against outliving their savings as part of their holistic financial plans. Meanwhile, Millennials (67%) and Gen-Xers (66%) were both far more likely than Boomers (28%) to incorporate an in-plan income guarantee within their defined contribution plan.

While Millennials’ retirement could last 30 years or more, it’s not clear they’re fully aware of their longevity risk. In fact, only 40% of Millennials expect to require retirement income for 30 years or more, compared to 47% Gen-Xers and 35% of Boomers. With decades of savings ahead of them, many Millennial investors are off to a good start. Asked how long they could comfortably live off their current retirement savings, 27% of Millennials said 10 years, 36% said 20 years, while 18% said they already had enough saved for 30 years or more. Considering that more than one-third of Americans are forced into retirement sooner than they’d planned³, it’s increasingly important for all investors to be prepared for the possibility of funding retirement for longer than expected.

Top Factors for Attracting Millennials
The opportunity to work with Millennials is substantial. Advisors and financial professionals can tap into Advisor Authority insights to better understand these younger investors, meet their needs, earn their trust and win their business.

Millennial investors, like other generations, said that years of experience was the number one-factor for choosing an advisor or financial professional—but Millennials (41%) cited this slightly less than Gen-Xers (47%) and far less than Boomers (57%). And while all generations said personalized advice for a holistic plan was the number-two-factor—this was cited by more Millennials (31%) than Gen-Xers (25%) and Boomers (25%).

When choosing an advisor, Millennials also expressed different priorities and unique values. Technology clearly matters more to these digital natives when choosing an advisor or financial professional, with two different technology solutions tied for their number-three factor. Millennials were more likely to prioritize increased use of mobile technology (19%) than Gen-Xers (9%) and far more likely than Boomers (4%). Millennials were also far more likely to prioritize enhancements to their advisor’s website or client portal (19%) than Gen-Xers (7%) or Boomers (3%).

Multi-generational teams, including younger advisors, was another influential factor to work with a financial advisor for more Millennials (17%) than Gen-Xers (11%) or Boomers (2%). Likewise, Millennials were more likely to cite additional strategies for charitable giving (16%) than Gen-Xers (7%) and much more likely Boomers (3%), suggesting that this generation cares deeply about where their money goes. Not surprisingly, reducing fees for younger clients was influential to more Millennials (15%) than Gen-Xers (7%) or Boomers (1%).

Finally, in a year of the unexpected and unprecedented, when concerns about a declining economy, falling markets and ongoing volatility were top of mind, it increased the demand for guided advice. Asked the number-one benefit of working with their advisor when markets are volatile, younger investors were focused on the emotional impact while their older counterparts were more focused on the financial impact. Millennials with an advisor were more likely to say that helping them stay calm and avoid emotional reactions (19%) was the number-one benefit. Meanwhile, Gen-Xers (20%) and Boomers (26%) with an advisor agreed that protecting assets against market risk was the number-one benefit.

For additional insights on Millennial investors, advisors and financial professionals can download the latest Advisor Authority infographic at: https://news.nationwide.com/millennials-planning-retirement/

About Advisor Authority: Methodology
The sixth annual Advisory Authority Survey was conducted online within the United States by Harris Poll on behalf of Nationwide Advisory Solutions from May 27 – June 25, 2020 among 1,768 advisors and financial professionals and 817 investors, ages 18+. Among the 817 investors, there were 12 Gen Z (18 – 23) 119 Millennials (24 – 39), 161 Gen X (40 – 55), 433 Boomers (56 – 74) and 92 Matures (75+). Investors are weighted where necessary by age by gender, race/ethnicity, region, education, income, marital status, household size, investable assets and propensity to be online to bring them in line with their actual proportions in the population. Respondents for this survey were selected from among those who have agreed to participate in Harris Poll surveys. Because the sample is based on those who were invited to participate in the Harris Poll online research panel, no estimates of theoretical sampling error can be calculated.  

About The Harris Poll
The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.