“Nationwide was founded to serve the needs of farmers and rural communities, and we still maintain deep roots in the agricultural community,” said Kristi Martin Rodriguez, SVP of Nationwide Financial Marketing and leader of the Nationwide Retirement Institute®. “That’s why we continue to invest in protecting American farmers, including helping them plan for their financial futures. Congratulations to our Nationwide Retirement Institute team for this well-deserved industry recognition.” 

The Land As Your Legacy program helps farmers and ranchers protect their operations and plan for the future. Over the past 18 months, the Nationwide Retirement Institute has advanced this mission through research, education, and strategic partnerships. In early 2023, the Institute conducted comprehensive research into rural communities’ attitudes toward financial advice, shaping solutions that meet their unique needs. 

Elements of this effort include: 

• Expanding partnerships with farm credit organizations.
• Launching a Multiple Employer Plan (MEP) with a leading state Farm Bureau, offering 401(k) plans for small farming operations.
• Protecting farm families, including writing the largest case in program history—safeguarding $180 million in assets for an Iowa farming family.
• Hosting educational events, including one that drew 54 clients representing over 20 farming operations.
• Delivering 150 presentations and creating 243 plans for farm families. 

These efforts reflect Nationwide’s continued dedication to helping agricultural families secure their financial futures while preserving their legacies. 

The company was also named a finalist for the awards ceremony in the Thought Leadership and Education category. 

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• Americans face health care premium pressures which are leading to cuts in medical and preventative care
• This pressure and resulting behaviors could impact long-term financial security, fueling retirement anxiety
• These challenges are compounded by planning gaps and misconceptions about Medicare coverage.
• Financial advisors can play a critical role in helping individuals navigate these challenges.

COLUMBUS, Ohio — As the national debate over affordable health insurance continues, new findings from the Nationwide Retirement Institute show that rising medical costs are forcing even insured Americans to make difficult decisions about their care. Nearly two in five U.S. adults with insurance (37%) report avoiding medical care when sick due to cost concerns, and 41% of insured Americans have skipped healthcare appointments due to rising costs in the past year alone.

To cope with this pressure, insured Americans are increasingly cutting the preventative care that can identify health concerns early and avoid costly interventions later. Over the past year, Americans have postponed or cancelled:

• Dental cleanings (23%)
• Vision tests (20%)
• Seeing a specialist (17%)
• Mental health care (16%)

While these cuts may feel necessary in the moment, skipping care today can create greater health and financial risks in retirement.

At the same time, the price of staying insured is climbing. In 2025, the average cost for single coverage is on track to increase 5%, with family costs rising 6%. With temporary Affordable Care Act (ACA) tax credits set to expire, many households may soon face even steeper premiums.

This creates financial squeeze on two sides: people are paying more to stay insured, yet their insurance covers less of their total health care expenses. Higher premiums combined with rising out-of-pocket costs mean many Americans spend more upfront and still face bills they cannot manage.

Indeed, Nationwide’s survey found:

• 18% of Americans have already turned to medical debt or credit cards to cover out-of-pocket expenses.
• Nearly one-third (31%) say they cannot afford to pay an unexpected $500 out-of-pocket medical bill.

The introduction of high-cost medications, including GLP-1 drugs for diabetes and weight management, is adding more pressure. Many adults who could benefit from these treatments face steep out-of-pocket costs or limited coverage, further widening the gap between what insurance pays and what patients must shoulder themselves.

“Today’s health care costs are forcing Americans to make difficult decisions about when and how to seek care,” said Kristi Rodriguez, senior vice president, Financial Services Marketing and leader of the Nationwide Retirement Institute. “Those tradeoffs may feel short-term, but they can have lasting consequences — leading to poorer health outcomes that, over time, drive higher medical expenses and greater financial stress in retirement.”

Rising Retirement Fears
Rising health care costs pose an even greater challenge as increased longevity requires Americans to manage both higher expenses and more years of care. This pressure is reflected in people’s concerns:

• 73% of U.S. adults list health care expenses going out of control as one of their top retirement fears.
• 71% say they are terrified of what those costs could do to their retirement savings.
• More than half (51%) say medical/health expenses have drastically reduced how much they have saved or will be able to save for retirement.
• 68% worry that a single, major health event could ruin their finances for years to come.

Despite these fears, most Americans admit they are unprepared:

• Nearly six in 10 (59%) say they are not confident in their ability to budget for health care expenses in retirement.
• Two-thirds (66%) cannot estimate how much those costs will total in all of retirement.
• Only 38% have a plan to save for the amount they expect to need in retirement.

These knowledge gaps also extend to safety net programs like Medicare, which currently covers more than 69 million Americans. On average, respondents answered fewer than half of a 16-question Medicare quiz correctly (~7 correct answers on average). One of the biggest misconceptions: two-thirds (66%) incorrectly think that or are not sure if Medicare covers long-term care costs — leaving a costly gap in many people’s plans.

Turning Financial Anxiety into Action with Help
While the financial risks of rising health care costs are clear, the survey also points to an actionable solution: guidance from a trusted financial professional. Americans who work with an advisor are significantly more likely to feel informed and confident about their health care planning. For example, 42% of those not paying to work with an advisor say they do not know how Medicare works to cover medical costs in retirement, compared to just 21% of those who pay to work with a financial professional.

Still, these findings suggest there’s room for deeper conversations:

• More than half (56%) of those working with a financial professional say they have not yet received advice on how and when to file for Medicare benefits.
• Seven in 10 (72%) of those working with a financial professional or those who do not work with a financial professional but do plan to ask one about Medicare benefits in the future say they would switch to an advisor who could offer that guidance.

“Now is the time to close the gap between concern and action,” said Rodriguez. “Financial professionals have a powerful opportunity to help clients understand the connection between health and wealth—by budgeting for routine care and out-of-pocket expenses, planning realistically for health care costs in retirement, and navigating Medicare with confidence. Proactive guidance can protect savings and give clients greater peace of mind about retirement.”

To help financial professionals guide these conversations, Nationwide’s Health Care Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data to help financial professionals and clients estimate future medical and long-term care expenses, and its educational resources ensure advisors have strategies and tools to help their clients prepare.

View the full methodology here.

More than two-in-five (44%) Gen Z investors say they feel behind in their retirement savings goals and are working to catch up. However, Gen Zers are leaning into spending despite long-term financial concerns, with nearly a fifth (17%) saying they are spending more on leisure expenses at this point in their life because they may never be able to retire.

As traditional retirement feels increasingly out of reach, Gen Z is beginning to challenge the very concept of retiring at age 65. Thirty-eight percent believe the standard retirement age of 65 is not relevant to them in today’s economic environment, and approximately half (48%) now plan to work longer, citing remote work as a factor that makes it unnecessary for them to retire at that age. 

Gen Z’s skepticism is rooted in current financial pressures. Four in ten (40%) feel worried about their ability to afford monthly bills over the next 12 months, and nearly half (46%) cited paying down loans and debts (i.e., student loans, credit cards, mortgages, car payments, etc.) as a top financial commitment in that same timeframe.

To further compound this generation’s stress, 77% of Gen Zers are also concerned about a U.S. economic recession over the next 12 months. However, many aren’t taking proactive steps to address that concern – four in ten (40%) currently do not have a strategy in place to help protect their assets against market risk, slightly up from 32% a year ago. Even more troubling, only a fifth (19%) of Gen Z investors say they understand how compounding interest works when investing over time, potentially limiting their ability to build long-term wealth.

“With recent market volatility, it’s not surprising that Gen Z savers are somewhat pessimistic about their financial futures,” said Kristi Martin Rodriguez, leader of the Nationwide Retirement Institute and financial services marketing for Nationwide. “For these young people, retirement may seem like a lifetime away and feel like a very steep mountain to climb. However, something they may not be considering is that they could potentially live decades longer in retirement than prior generations. As a mother of two Gen Z daughters, I’ve been stressing the importance of beginning to save right away so they can leverage their most powerful advantage: A long-term horizon that allows them to maximize the power of compounding interest.”

A New Way of Saving and Investing
Gen Z is taking advantage of new, less traditional financial tools to save their hard-earned cash, no longer relying on legacy financial institutions to grow their money. As a generation raised on modern technology, nearly one in three (32%) Gen Z investors use digital wallets (e.g., Apple Pay or Google Pay) and 30% use peer payment platforms (e.g., Venmo or Zelle) to invest, save or store their money. Additionally, a surprising one in five (19%) say they invest, save or store their money in cryptocurrency or non-fungible tokens.

Gen Z Investors Delay Seeking Professional Guidance
Despite concerns about both the current economic environment and their personal financial standing, many Gen Zers are holding off on seeking professional guidance. A third (33%) of Gen Z investors who don’t pay to work with a financial professional indicated it is because they believe they are too young/early in their retirement planning journey to rationalize pursuing financial advice. Instead, they are turning to more accessible – though not always reliable – sources. A quarter (24%) of Gen Z investors who don’t have a financial advisor indicated it is because they get any necessary financial advice from online financial influencers (“finfluencers”) and social media platforms.

While digital content can be a good starting place when it comes to financial literacy, the absence of professional advice may leave gaps in understanding or strategy. That said, personalization is still a key motivator for this group. More than a third (34%) say an advisor who understands their financial goals at this stage in their life would make them more likely to work with a financial professional.

“It’s great to see Gen Zers seeking out financial literacy from a variety of resources. Knowledge is power, and the more you learn about investing and saving, the better prepared you will be,” Rodriguez said. “However, make sure you’re working with trustworthy sources, including the most reliable source of all: a trusted financial professional.  For those who feel they don’t have the means or assets to do so, many workplace retirement plans offer some great educational tools and resources as well as financial guidance that can be both affordable and impactful.”

Financial Professionals Applaud Gen Z Financial Literacy
Advisors who work with Gen Z clients see a generation that is both cautious and capable. A majority of these advisors (62%) believe that Gen Zers are more financially literate than previous generations.

Advisors have noted they are spending a significant portion of their time educating Gen Z clients on foundational financial topics. Specifically, 42% of advisors are counseling their Gen Z clients most frequently on investing for the first time (e.g., 401(k)s, IRAs and stocks). Additional topics advisors feel are most important for their Gen Z clients include: 

• The importance of starting retirement planning early (54%)
• Basic budgeting and building healthy spending habits (52%)
• Understanding the basics of investing and compounding growth (49%)
• Debt management and strategies for avoidance (49%)

These ongoing conversations suggest that, while Gen Z may feel overwhelmed, many are actively looking to build a solid financial foundation— and advisors see an opportunity to guide them toward long-term success.

“It’s encouraging to see advisors focused on the right things with Gen Z clients. That includes helping them break the ice on saving and investing, while balancing that opportunity with other financial demands including debt and spending on today’s needs,” Rodriguez said. “However, to really connect with this generation of savers, advisors are going to need to lead with empathy. Make sure you are considering Gen Zers’ unique financial situation and listening to understand. Help them recognize the longevity challenges they will likely face, provide them with education and knowledge to make smart financial decisions and arm them with a holistic financial plan that will help ensure they won’t outlive their income in retirement.”

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

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

Nationwide’s tenth 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 610 advisors and financial professionals and 2,524 investors ages 18+ with investable assets (IA) of $10K+, January 6-25, 2025. Among the investors, there were 349 Gen Z investors (aged 18-28).

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 ± 4.0 percentage points and for investors the sample data is accurate to within ± 2.5 percentage points using a 95% confidence level.  This credible interval will be wider among subsets of the surveyed populations 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 research—conducted as part of the Nationwide Retirement Institute’s Century Club campaign, which explores the financial implications and consumer sentiment related to rising life expectancy—highlights just how fragile the equation can be. According to The College’s research, extending a retirement by just 5 years from 30 to 35 years increases the risk of depleting savings by a striking 41%, based on historical market returns. And that risk only intensifies as lifespans continue to lengthen, particularly among healthy, higher-income retirees. 

A companion consumer survey from the Nationwide Retirement Institute shows most Americans are underestimating both their chances of living to 100 and the financial demands that kind of longevity brings. In fact, only 29% of respondents said they want to live that long, citing concerns about declining health and deep financial anxieties. Roughly three in four fear they’ll run out of money before they run out of time. 

Today’s volatile economic environment is raising the stakes even higher. According to the joint research, two out of five non-retired Americans (40%) now say they plan to delay retirement due to inflation. And the math is sobering when factoring in lower projected 10-year portfolio returns: Extending retirement by just five years increases the risk of running out of money by more than 300% according to The College’s analysis.  

These findings send a clear message—retirement planning needs a major reset. Both consumers and advisors must shift their mindset, prioritizing longevity risk and placing a stronger emphasis on guaranteed income strategies that can weather uncertainty. 

“Too many people underestimate how long they’ll live—and that blind spot can seriously undermine their financial security,” said Michael Finke, PhD, CFP^®, professor of wealth management, director of the Granum Center for Financial Security at The American College of Financial Services and co-author of the study. “We consistently see that those who plan for longevity feel more confident about retirement. The key drivers of that confidence? Working with an advisor, having access to guaranteed income, and building a plan that’s designed to last.” 

Knowledge is Power—and Protection 
Preparing financially for a longer life starts with one key step: considering how long you might live. Yet just 48% of Americans factor lifespan into their savings and investment decisions, according to the Nationwide Retirement Institute’s survey, and only 26% of respondents correctly estimated the longevity of a 65-year-old man according to the joint research. 

While the challenges of planning for longer lifespans are apparent, the Nationwide Retirement Institute’s consumer survey also reveals a powerful silver lining: if Americans knew they would live longer, many would take meaningful action to improve their physical and financial well-being: 

• 58% said they would adopt a healthier lifestyle 
• 67% would pay closer attention to their finances and increase their savings 
• 37% said they would delay retirement  
• 63% said they would take on less debt 

Mindset also matters. The College’s research found that optimists are 75% more likely to save at least 10% of their income – underscoring how a positive perspective can drive more financially secure retirements. The report also refers to financial literacy as “a quiet driver of retirement readiness.” 

"When people think seriously about living longer, it becomes clear that physical, mental, and financial health go hand in hand,” said Kristi Martin Rodriguez, leader of financial services marketing and the Nationwide Retirement Institute. “Just as we encourage healthy habits to support longer lives, we need to help build strong financial habits that ensure people can thrive well into their later years.” 

Solutions Exist – Now It’s Time to Use Them 
While 70% of Americans agree that society is not prepared to meet the needs of people with longer lifespans, the good news is that effective solutions already exist. These include long-term care (LTC) insurance and guaranteed income products, including annuities and protected retirement solutions that are available in a growing number of employer-sponsored retirement plans. The problem? These tools remain widely misunderstood or overlooked, highlighting a significant gap in consumer education. 

Nationwide’s research shows that nearly one-third of consumers (32%) believe long-term care insurance would be one of the most helpful resources for preparing to live to 100. Yet, only 1 in 10 actually report owning a policy, according to The College. The story is similar for annuities: 31% of consumers say an investment that guarantees income for life would help them feel more financially secure, but knowledge and adoption of these products remain stubbornly low. Additionally, in the past few years, a new type of investment option in workplace retirement plans that can provide guaranteed income in retirement has been gaining interest and garnering discussion across the country. This type of solution is growing but there remains an opportunity for the industry to encourage more widespread adoption of these solutions.   

“As the risk of longevity combined with today’s volatile market environment create what might seem like a perfect storm for retirement savers, the good news is that solutions exist to provide a measure of certainty in an uncertain environment,” Rodriguez said. “Financial professionals and others serving America’s retirement savers can play a critical role in bridging this gap, tailoring strategies to individual needs – especially for groups like women, who tend to live longer, score slightly higher in longevity literacy, yet report lower retirement confidence overall.” 

These findings from Nationwide and The College reveal a powerful truth: America is on the brink of a longevity revolution, yet many Americans are financially underprepared to meet it.  

The Nationwide Retirement Institute’s Total Retirement Income Planning initiative offers a variety of tools and resources for advisors to address the longevity challenge for clients.  

This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional. 

This information is general in nature and is not intended to be tax, legal, accounting, or other professional advice. The information provided is based on current laws, which are subject to change at any time, and has not been endorsed by any government agency. 

Nationwide and The American College of Financial Services are separate and non-affiliated companies. 

Life and annuity products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.  

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC. 

Nationwide, Nationwide is on your side, the Nationwide N and Eagle, and The Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company. © 2025 

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The research—conducted as part of the Nationwide Retirement Institute’s Century Club campaign, which explores the financial implications and consumer sentiment related to rising life expectancy—highlights just how fragile the equation can be. According to The College’s research, extending a retirement by just 5 years from 30 to 35 years increases the risk of depleting savings by a striking 41%, based on historical market returns. And that risk only intensifies as lifespans continue to lengthen, particularly among healthy, higher-income retirees. 

A companion consumer survey from the Nationwide Retirement Institute shows most Americans are underestimating both their chances of living to 100 and the financial demands that kind of longevity brings. In fact, only 29% of respondents said they want to live that long, citing concerns about declining health and deep financial anxieties. Roughly three in four fear they’ll run out of money before they run out of time. 

Today’s volatile economic environment is raising the stakes even higher. According to the joint research, two out of five non-retired Americans (40%) now say they plan to delay retirement due to inflation. And the math is sobering when factoring in lower projected 10-year portfolio returns: Extending retirement by just five years increases the risk of running out of money by more than 300% according to The College’s analysis.  

These findings send a clear message—retirement planning needs a major reset. Both consumers and advisors must shift their mindset, prioritizing longevity risk and placing a stronger emphasis on guaranteed income strategies that can weather uncertainty. 

“Too many people underestimate how long they’ll live—and that blind spot can seriously undermine their financial security,” said Michael Finke, PhD, CFP^®, professor of wealth management, director of the Granum Center for Financial Security at The American College of Financial Services and co-author of the study. “We consistently see that those who plan for longevity feel more confident about retirement. The key drivers of that confidence? Working with an advisor, having access to guaranteed income, and building a plan that’s designed to last.” 

Knowledge is Power—and Protection 
Preparing financially for a longer life starts with one key step: considering how long you might live. Yet just 48% of Americans factor lifespan into their savings and investment decisions, according to the Nationwide Retirement Institute’s survey, and only 26% of respondents correctly estimated the longevity of a 65-year-old man according to the joint research. 

While the challenges of planning for longer lifespans are apparent, the Nationwide Retirement Institute’s consumer survey also reveals a powerful silver lining: if Americans knew they would live longer, many would take meaningful action to improve their physical and financial well-being: 

• 58% said they would adopt a healthier lifestyle 
• 67% would pay closer attention to their finances and increase their savings 
• 37% said they would delay retirement  
• 63% said they would take on less debt 

Mindset also matters. The College’s research found that optimists are 75% more likely to save at least 10% of their income – underscoring how a positive perspective can drive more financially secure retirements. The report also refers to financial literacy as “a quiet driver of retirement readiness.” 

“When people think seriously about living longer, it becomes clear that physical, mental, and financial health go hand in hand,” said Kristi Martin Rodriguez, leader of financial services marketing and the Nationwide Retirement Institute. “Just as we encourage healthy habits to support longer lives, we need to help build strong financial habits that ensure people can thrive well into their later years.” 

Solutions Exist – Now It’s Time to Use Them 
While 70% of Americans agree that society is not prepared to meet the needs of people with longer lifespans, the good news is that effective solutions already exist. These include long-term care (LTC) insurance and guaranteed income products, including annuities and protected retirement solutions that are available in a growing number of employer-sponsored retirement plans. The problem? These tools remain widely misunderstood or overlooked, highlighting a significant gap in consumer education. 

Nationwide’s research shows that nearly one-third of consumers (32%) believe long-term care insurance would be one of the most helpful resources for preparing to live to 100. Yet, only 1 in 10 actually report owning a policy, according to The College. The story is similar for annuities: 31% of consumers say an investment that guarantees income for life would help them feel more financially secure, but knowledge and adoption of these products remain stubbornly low. Additionally, in the past few years, a new type of investment option in workplace retirement plans that can provide guaranteed income in retirement has been gaining interest and garnering discussion across the country. This type of solution is growing but there remains an opportunity for the industry to encourage more widespread adoption of these solutions.   

“As the risk of longevity combined with today’s volatile market environment create what might seem like a perfect storm for retirement savers, the good news is that solutions exist to provide a measure of certainty in an uncertain environment,” Rodriguez said. “Financial professionals and others serving America’s retirement savers can play a critical role in bridging this gap, tailoring strategies to individual needs – especially for groups like women, who tend to live longer, score slightly higher in longevity literacy, yet report lower retirement confidence overall.” 

These findings from Nationwide and The College reveal a powerful truth: America is on the brink of a longevity revolution, yet many Americans are financially underprepared to meet it.  

The Nationwide Retirement Institute’s Total Retirement Income Planning initiative offers a variety of tools and resources for advisors to address the longevity challenge for clients.  

Nationwide Retirement Institute Methodology 
Edelman Data and Intelligence (DXI) conducted a national 15-minute online survey of n=1,000 U.S. consumers (age 18+), and n=200 U.S. workers ages 55-65 on behalf of Nationwide from February 18 – February 26, 2025.    

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.  

American College Methodology  
The Retirement Income Literacy Study conducted by The American College of Financial Services measures financial literacy in 12 retirement-related knowledge areas among individuals approaching or in retirement age. Researchers from The College surveyed 3,765 Americans aged 50 to 75 in 24-minute online interviews conducted in August 2023. The data was collected to match the 2020 U.S. Census for gender and race. Other figures reflect the authors’ calculations based on publicly available data. See the full report for all source citations. 

“Kristi brings a wealth of experience and a proven track record of success in both marketing and business strategy,” Bair said. “In her new role Kristi is returning to her marketing roots. She began her career at Nationwide nearly 10 years ago to support our Nationwide Retirement Solutions marketing strategy.”  

As leader of the Nationwide Retirement Institute, Rodriguez drove business growth by expanding service offerings and delivering crucial content and consultation to financial services intermediaries. She regularly serves as a media voice for the company, advancing Nationwide’s position as an industry thought leader.  

Moving forward, the Nationwide Retirement Institute team will be integrated into the Nationwide Financial Marketing team led by Rodriguez, continuing to be an engine for thought leadership and business enablement. 

As a marketer earlier in her career at Nationwide, she led marketing strategy for Nationwide Retirement Solutions, supporting sales teams and aiding distribution with key clients. Prior to joining Nationwide, Kristi served as a marketing leader for over 15 years in the health care industry. 

“Kristi’s ability to integrate marketing initiatives with business objectives and her deep understanding of our customers’ and partners’ needs will be invaluable as we navigate the evolving financial landscape,” Bair said. “Her expertise will help us strengthen our market position and drive continued growth.” 

Kristi Rodriguez graduated from Hampton University with a degree in finance and later completed the consumer marketing strategy executive training program at Kellogg School of Management, Northwestern University. 

Many American consumers are questioning the health of the U.S. economy and how it is affecting their personal finances, according to a new survey from the Nationwide Retirement Institute®. As a result, some investors are taking potentially adverse actions, and many are doing so without professional guidance.

Almost 8 in 10 (78%) respondents rate the US economy overall as poor or fair, which marks a 6% improvement from last year. When asked the reasons for a negative rating of the economy, respondents overwhelmingly cite inflation (80%), wages not keeping up with the cost of living (51%) and high housing costs (50%). Almost two-thirds (64%) rate their personal finances as poor or fair.

For many Americans, retirement planning is taking a back seat to more pressing needs. Top financial goals for respondents include managing essential expenses (57%) and paying off debt (47%), followed by saving for retirement (45%), improving their investment portfolio (23%) and estate planning (14%).

Interestingly, this data seems to contrast with other economic indicators that show a more optimistic outlook of the evolving economic environment. For example, a Congressional Budget Office report found that household purchasing power has increased across all income levels since 2019 and data from the Bureau of Labor Statistics show a healthy job market with more job openings than unemployed workers.  

Despite these uplifting economic signals, consumers continue to feel budgetary strain and are changing their behavior in ways that could potentially have long-term adverse effects. More than one in four (27%) are either reducing their retirement plan contributions or considering doing so. About one in five (21%) have withdrawn money or are considering withdrawing money from their retirement savings to cover housing costs – a move that not only depletes savings but also carries significant tax implications. Additionally, anxiety about the upcoming presidential election has 76% of respondents on edge, with almost a third (32%) anticipating making changes to their investment allocations based on its outcome.

“People are feeling a deep sense of economic unease right now, driven by headlines of geopolitical uncertainty, and the seeming disconnect between their rising grocery bills and a surging stock market. With all this, it’s natural for American savers to feel anxious and be tempted to make changes in the way they manage their personal finances,” said Kristi Martin Rodriguez, leader of the Nationwide Retirement Institute. “However, emotional responses to short-term challenges – especially ones that may be easing – can lead to long-term mistakes when it comes to planning for a secure retirement. We are in the exact type of economic environment where a financial professional and trusted partner can add real value by helping their clients focus on their long-term goals and ensure they are set up for success long past current conditions.”

Many Americans are navigating important decisions without an advisor
Nearly three fourths of survey respondents (74%) said they do not use a financial advisor for help with personal finances. The top reasons include perceived cost (44%), not having enough assets to work with one (37%), feeling they don’t need advice (23%) or that they don’t know where to go to find an advisor (22%). For advice on personal finances, respondents are turning to friends and family (54%), prayer (26%), a financial professional (26%) and online resources like web sites and blogs (25%).

“The good news is that 38% of respondents indicated they either started working with a financial professional in the past 12 months or plan to do so,” Rodriguez said. “Our data highlights a huge opportunity for advisors to engage new and existing clients who feel overwhelmed by choices in the current economic environment.”

“For those investors who feel the need to make a change in their long-term plan, it could be a costly mistake to go it alone,” Rodriguez said. “In the end, the cost of working with a financial professional is likely to pay for itself in the form of potentially better long-term outcomes. And for those who feel professional advice is out of reach, many workplace retirement plans offer tools, education and advice for free or minimal cost.”

The emergence of Gen AI is transforming the financial advisor role
Although professional advice from a human advisor is invaluable, some investors are embracing new technologies to assist with their financial planning, such as Generative Artificial Intelligence (Gen AI). Furthermore, this adoption of Gen AI is also inspiring financial professionals to change the way they support their clients. While the majority of respondents remain cautious about its use in financial planning, many are open to including it in their process.

More than four in ten (44%) respondents believe that in the next 5 years AI technology will provide better financial advice than a human advisor (an increase of 13% since 2023) and 36% currently trust financial advice provided by AI, (up 11% in the past year). Four in ten (41%) feel comfortable working with a financial professional who uses AI to make recommendations about their financial plan. 

“I don’t believe AI will ever fully replace a trusted human to human interaction, but forward-thinking advisors will begin to find opportunities to incorporate these tools in their work to create increased efficiency and free up time for to better understand their client’s needs,” Rodriguez said. “For something as consequential as financial planning, there is no substitute for the ability to listen, empathize and personalize a plan to meet each client’s personal goals.”

Rodriguez offered these tips to help advisors meet anxious clients where they are:

• Be proactive: Don’t wait for your clients to come to you. Set up time to check in with them about how they are feeling about their financial plan.
• Listen: When clients express concerns, give them room to vent. Reinforce that it’s OK to share their emotions. Demonstrate empathy without judgement.
• Understand the basis of their concerns: Ask about the sources of information they rely on. Understand if their perspective is based on reliable or questionable sources and be prepared to back up your resulting guidance with simple, solid facts.
• Revisit their goals: Ask them if their long-term objectives have changed. Explore whether their current plan needs adjustment. By involving them in this process, you may calm their nerves and help them feel more in control when it comes to taking action or merely deciding to stick to their long-term plan.

To learn more about Nationwide’s 2024 Economic Impact survey, visit news.nationwide.com.

View this infographic highlighting survey results.

Methodology
Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online survey of 2,000 US consumer adults aged 18 and older from May 1-15, 2024. The survey was weighted to be representative of the U.S. population by age, gender, region and ethnicity. 69% of respondents claimed household income of $75,000 or less.

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.

Nationwide and its representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.
 

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More than half of respondents (59%) lack confidence in their ability to pay for health care costs as they age, and 57% worry about their ability to pay for caregiving for their partner/spouse.

The study also found that financial planning challenges may be exacerbated by the potential for medical advancements brought on by artificial intelligence (AI) to extend lifespans. One in four Americans (26%) expect AI advancements in health care to add over a decade to their lifespan. Of those, Gen Z expect AI to add an average of 15 years to their life, millennials 12 years, Gen Xers 8 years and boomers 9 years. * This signals Americans could be paying for health care costs for significantly longer than they are doing today, and they need a plan that accounts for that.

“Advances in AI and health care technology in general are moving faster than ever and may help treat many of today’s chronic diseases, as well as other health issues,” said Kristi Rodriguez, senior vice president of the Nationwide Retirement Institute. “While this is good news, longevity requires more planning. That is why it is so important to consult with a financial professional to create a plan that prioritizes your health care needs now and for a retirement that could be longer than anticipated.”

Americans are making tradeoffs to manage health care expenses
As Americans eye a future that could be longer than anticipated, today’s economic uncertainty is putting a strain on their finances and causing them to make tough decisions about their medical care that could have significant long-term implications.

• Nearly 1 in 5 (18%) adults have postponed health care actions such as a medical procedure, physical exam, or renewing prescriptions in the past 12 months to save money
• To find additional savings, 10% of Americans say they are considering downgrading their health insurance plan because of high inflation, including 19% of Gen Z, 11% millennials and 14% of Gen Xers
  • Three-fifths of adults 18+ (60%) are placing a bet on their health by saying they chose or would choose a health insurance policy with a lower premium but higher deductible plan which typically have a cheaper monthly payment

While Americans are trading more comprehensive health coverage for lower monthly premiums, many do not have the means to cover an emergency health care expense. The survey found more than half of Americans (51%) say they could not pay off an unexpected $5,000 health care out-of-pocket expense.

“As inflation and rising health care costs continue to be a pervasive concern, the most important action individuals can take is to consult with a financial professional,” said Rodriguez. “They can help develop tailored financial plans to ensure people are equipped to meet their health care costs without compromising their overall financial wellbeing.”

The implications on retirement planning
In a country where 100 million people live with medical debt, it’s no surprise that two-thirds of U.S. adults (66%) are terrified of what health care costs may do to their retirement plans and worry that a single large health care issue could ruin their finances for years to come. Even more Americans (72%) say that one of their top fears in retirement is their health care costs becoming out of control.

With all this worry, 69% of Americans with chronic conditions (60% of the U.S. adult population**) say they do not have a written financial plan that includes how to pay for the health care costs related to their condition in retirement. Nearly 7 in 10 Americans (68%) do not work with a financial professional.

Conversations with financial professionals are key
In addition to developing plans that consider health care costs and needs, financial professionals are instrumental in guiding retirees through the complexities of our health care system and helping them select the most suitable plans based on their health needs and financial situation. Research findings show this level of guidance is sorely needed.

Nearly three-quarters (72%) of respondents said they wish they understood Medicare coverage better and the vast majority (70%+) responded incorrectly when asked basic questions about Medicare, such as what it covers, how Medicare Part B works, and cost considerations for different Medicare plans.

Americans also dangerously underestimate the average cost of health care in retirement, putting it at $55,343 when the actual cost in 2022 was almost triple that at $172,500 for an individual or $315,000 for a typical 65-year-old retired couple.***

“Our survey shows that Americans need more knowledge, guidance, and ongoing support to make informed decisions about their financial plans,” added Rodriguez. “By incorporating health care into financial planning conversations, financial professionals can help clients better prepare for the rising costs of health care.”

To help financial professionals guide these conversations, Nationwide’s Health Care Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data to help financial professionals and clients estimate future medical and long-term care expenses. 

To learn more about the 2023 Nationwide Retirement Institute Health Care Costs in Retirement consumer survey, visit www.nationwide.com/healthcareinsights.  In addition, financial professionals can visit www.nationwidefinancial.com/healthcareinsights to learn more.

Survey Methodology
The research was conducted online in the United States by The Harris Poll on behalf of Nationwide among 1,260 adults age 18+ residing in the U.S. (“national sample”), including 301 Gen Z (18-26), 310 millennials (27-42), 307 Gen X (43-58), and 342 boomers+ (59+). The survey was conducted August 28 – September 11, 2023.

Data are weighted where necessary by age by gender, race/ethnicity, region, education, marital status, household size, household income and propensity to be online to bring them in line with their actual proportions in the population (for those age 27+). Gen Z (18-26) data are weighted by age by gender, race/ethnicity, region, education, size of household and propensity to be online.

To ensure the national sample was representative, the data were initially weighted by generation (Gen Z 18-26, millennials 27-42, Gen X 43-58, and boomers+ 59+) and then combined into a total age 18+ group, and for trending purposes to previous waves of the study that did not include Gen Z (18-26), the trended group of age 27+ was combined.

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 is accurate to within + 3.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

• The sample data for the trended sample is accurate to within + 4.2 percentage points using a 95% confidence level

All sample surveys and polls, whether or not they use probability sampling, are subject to other multiple sources of error which are most often not possible to quantify or estimate, including, but not limited to coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments.

About The Harris Poll 
The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works 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. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing.

Because of this, consumers’ sentiment on the economy and their own financial strategy has deteriorated since 2022. Only 16% of consumers rate the U.S. economy as good or excellent today, an 8-point decline from September 2022. About four in ten (39%) give a positive rating to their own personal finances, another 8-point decline from September 2022.

When it comes to managing their personal finances, consumers are most concerned about inflation or rising living costs (59%), the cost of rent or housing (34%), lack of savings for unexpected or emergency expenses (32%), managing debt (31%); healthcare expenses (28%), and not being on track for retirement (18%).

“It’s not surprising that people are feeling anxious,” said Kristi Martin Rodriguez, leader of the Nationwide Retirement Institute. “It’s important for advisors and financial professionals to understand the emotions their clients are feeling right now as a first step to helping them stay focused on their long-term financial plans.”  

People need help staying the course
To offset inflation, some consumers are making decisions that could be detrimental to their long-term financial strategy. More than one-third (37%) have or are considering relying more on credit cards, 24% have or are considering reducing their retirement plan contributions, and 21% have or are considering taking out a new loan. Nearly six in ten (57%) consumers have used savings in the past 12 months to pay for everyday expenses. This is even higher for Gen Z and Millennial consumers at 64% and 66%, respectively.

In the event of a recession, consumers’ top concerns include their ability to save in general (58%), their ability to save for retirement (52%), their retirement account losing value (52%), and their ability to retire on time (42%).

Investors are turning to alternative sources for financial advice
Despite fears and concerns about their personal finances, most consumers — especially younger ones — are turning to unproven sources for help. Seven in ten survey respondents (70%) are not using a financial advisor, citing reasons such as: It costs too (46%), they don’t have enough assets (37%), they don’t know who to go to (22%), they don’t need advice and can handle themselves (21%), they don’t trust the financial services industry (16%), or they’re too busy (11%).

Instead of professional help, they are turning to other sources, including friends or family (48% Gen Pop, 66% Gen Z); online resources (26% Gen Pop, 34% Millennials), prayer (20% Gen Pop) and social media (11% Gen Pop, 22% Gen Z).

Notably, about one-third of respondents (31%) feel ChatGPT will provide better financial advice than a human advisor in the next five years. This percentage is higher for younger consumers, at 37% for Gen Z and 43% for Millennials.

“In moments like we’re experiencing today, advisors and financial professionals have a huge opportunity to build deeper, trusting relationships with clients,” Rodriguez said. “There can be a real temptation for consumers to retreat or even surrender when the financial news cycle seems so challenging. The first step for advisors is understanding where their clients are coming from by listening with empathy. That can set the stage for a more collaborative conversation about steps to keep them on track.”

Rodriguez offers five tips to help advisors and financial professionals relieve their clients’ financial anxiety and build trust

1. Listen and empathize: Reach out to clients today and enter the conversation with an understanding of their worries and fears. Listen to them and give them space to open up about their feelings.
2. Uncover the client's sources of information: If they are considering rash decisions, ask questions such as "who are you listening to?" and "what are they saying?" to determine the factors that are influencing their mindset.
3. Discuss the best path forward: Ask them what actions they're thinking of taking, the alternative options available, and work together to decide the most appropriate path forward for their situation and goals.
4. Review their risk tolerance and current asset allocation strategy: Ask what’s new in their life, if their financial goals or circumstances have changed and whether their current financial strategies are working.
5. Reinforce the plan: Reinforce with your clients the tangible and emotional benefit of a financial plan – and the importance of sticking to it when times are tough. Sometimes a quick history lesson can help them visualize the eventual economic recovery that follows every downturn.

For additional insights on this survey data, see the full survey results.

Methodology
Nationwide partnered with Edelman Data & Intelligence to conduct a 15-minute online survey among a sample of 2,000 nationally representative adult consumers between March 30 and April 13, 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 information in this report is provided by Nationwide Economics and is general in nature and not intended as investment or economic advice, or a recommendation to buy or sell any security or adopt any investment strategy. Additionally, it does not take into account any specific investment objectives, tax and financial condition or particular needs of any specific person.

The economic and market forecasts reflect our opinion as of the date of this report and are subject to change without notice. These forecasts show a broad range of possible outcomes. Because they are subject to high levels of uncertainty, they will not reflect actual performance. We obtained certain information from sources deemed reliable, but we do not guarantee its accuracy, completeness or fairness.

Nationwide, the Nationwide N and Eagle, and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. © 2023 Nationwide.

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Only 16% of consumers rated the U.S. economy as good or excellent today, an 8-point decline since September 2022. This sentiment is partly driven by rising interest rates, with 70% of consumers reporting they are concerned about them – up from 61% in September 2022. Many are also uneasy with the Federal Reserve’s current policies, with more than a third (38%) believing it should cut interest rates to ease pressure on the U.S. economy.

“Despite elevated inflation, trouble in the banking sector, and 10 consecutive interest rate hikes, we continue to forecast a moderate recession in the second half of this year, which stands in contrast to fears that we’re heading for another Great Recession,” said Kathy Bostjancic, Nationwide’s Chief Economist. “Consumers are understandably worried, but consumer and business debt burdens are much less than they were 15 years ago and that should limit the degree of the economic downturn.” 

Consumers are making tradeoffs to manage inflation
Inflation continues to squeeze consumers’ finances, with 82% reporting they are concerned about inflation and rising living costs today, up five points since September 2022. As a result, more than half (57%) of Americans report dipping into their savings to pay for everyday expenses within the past 12 months. This is even higher for Gen Z and Millennial consumers at 64% and 66%, respectively.

Americans have made other sacrifices or decisions in the past 12 months due to rising inflation, including:

• Eating out less (54%) and driving less (37%)
• Delaying a major purchase (32%)
• Relying more on credit cards (23%)
• Looking for ways to save money on premiums with their existing insurance policies (23%)
• Looking for a better paying job (20%)
• Reducing their retirement plan contributions (11%)
• Decreasing coverage/limits on existing insurance policies (10%)

Because of these choices, the data signals some consumers have had to put their financial goals on hold due to inflation. Consumers’ top financial goals today include saving for retirement (44%), paying off debt (44%), building credit (24%) and saving for large purchases (22%).

Consumers need help navigating and planning for uncertainty
Despite these concerns and risks, most Americans, especially younger ones, may not be turning to the right sources for help. Most consumers surveyed (70%) aren’t using a financial advisor, citing concerns around costs (46%), not having enough assets (37%) and not knowing who to go to (22%). Consumers’ say their sources for advice and support on personal finances include:

• Friends or family (48% Gen Pop*, 66% Gen Z)
• Online resources (26% Gen Pop, 34% Millennials)
• Social media (11% Gen Pop, 22% Gen Z)
• ChatGPT (3% Gen Pop, 8% Gen Z)
  • Notably, 34% of Gen Z and 37% of millennials say they trust the financial advice provided by ChatGPT and other AI chatbots

“In moments like this, it’s easy to make emotional investing decisions,” said Kristi Martin Rodriguez, leader of the Nationwide Retirement Institute. “We live in a do-it-yourself world, but the cost of a short-term financial mistake can reverberate for years. A financial professional can work with you to build a plan that will help you weather near-term economic adversity and set you up for success in retirement.”

To view more findings from Nationwide’ 2023 Economic Impact survey, view the report here. 

 Methodology
Nationwide partnered with Edelman Data & Intelligence to conduct a 15-minute online survey among a sample of 2,000 nationally representative adult consumers between March 30 and April 13, 2022. 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.

Life insurance can play a powerful role in helping to close the racial wealth gap as a tool that builds generational wealth and legacy. This was highlighted in a recent Essence live conversation with Kristi Rodriguez, senior vice president of Nationwide Retirement Institute®, and Bola Sokunbi, founder and CEO of Clever Girl Finance.  

During the conversation, Rodriguez covered a range of topics around the broader benefits of life insurance, long-term care opportunities, and other insights that may help improve the well-being of Black Americans and their families.  

Watch the engaging conversation above.    

“Wherever you are in your financial journey, start today,” said Rodriguez. “Nationwide is taking a holistic approach to how we are thinking about life insurance from the workplace to the marketplace, but even more specifically, how we’re driving, impacting and creating products and solutions that meet the needs of the Black community.”   

To encourage discussions about life insurance and long-term care costs in retirement, Nationwide’s Health Care/Long-term care Cost Assessment tool provides a meaningful, personalized cost estimate that will help financial professionals and clients plan for future medical and long-term care expenses. 

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, Ohio. The Nationwide Retirement Institute is a division of NISC. 

Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company © 2022 Nationwide 

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Nearly one in five Americans (18%) say they skipped meals or didn’t buy groceries due to high inflation (including 28% of Gen Z and 23% of millennials). As food insecurity deepens, Americans are also struggling to pay for critical health care expenses. Many have cancelled or postponed plans in the past 12 months to see a specialist (14%), take a prescribed medication (10%) or get an annual physical (11%) due to high inflation. Almost one-fifth of Gen Z (17%) and Millennials (19%) have cancelled or postponed plans in the past 12 months to see a mental health professional.

“As the price of health care and basic necessities continue to reach record highs, Americans have been forced to make tough decisions that sacrifice their health and wellbeing,” said Kristi Rodriguez, senior vice president of the Nationwide Retirement Institute. “While these decisions are understandable and challenging, making short-term tradeoffs may have long-term impacts. Neglecting your health now can lead to far bigger costs as you age and approach retirement. This is such a critical time to consult with a financial professional to create a plan that prioritizes your health care needs now and in retirement.”

As Americans brace for even bigger expenses in the future, the survey finds that one in ten (10%) have decreased their retirement plan contributions in the past year to pay for health care expenses because of high inflation. Another 14% of adults are considering decreasing their contributions this year, and this number is higher for Gen Z and Millennials at 21% and 20%, respectively.

To find additional savings, 14% of Americans say they are considering downgrading their health insurance plan because of high inflation, which rises to 23% and 20% for Gen Z and Millennials, respectively.

One area of potential relief for those already age 65 and over is reviewing their Medicare plans during open enrollment, which runs through December 7. According to the National Council on Aging, only about 10% of people switch Medicare plans each year during open enrollment, which could mean they’re overspending for coverage they don’t need or use.

“It’s important people utilize online tools and resources in addition to leveraging a financial professional,” Rodriguez said. “For instance, older adults could save money right now by reevaluating their Medicare plan during open enrollment.”

Financial professionals can help Americans stay on track toward their short- and long-term financial goals

Though Americans are making daily decisions and tradeoffs to manage high inflation, many have not put a plan in place to pay for health care expenses in the near term and stay on track to meet their retirement goals in the long term. For example:

•  Less than a fifth of Americans (17%) have adjusted their family’s budget to pay for health care expenses in the past 12 months
• The majority (72%) report that one of their top fears in retirement is their health care costs going out of control, but only 39% have a plan to pay for health care costs in retirement
• 15% have delayed a large purchase or investment to pay for health care expenses in the past 12 months

“The role financial professionals play in creating more secure financial futures for their clients is even more important during high inflation,” Rodriguez said. “By incorporating health care into financial planning conversations, financial professionals can help clients better prepare for the rising costs of health care.”

To help financial professionals guide these conversations, Nationwide’s Health Care Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data to help financial professionals and clients estimate future medical and long-term care expenses.

To help guide clients through their Medicare options, Nationwide^® teamed up with the National Council on Aging (NCOA) to create the NCOA My Medicare Matters® tool brought to you by Nationwide. Consumers can learn more and complete an assessment at https://nationwide.mymedicarematters.org/.

Benefits Checkup® is an NCOA tool that helps people with Medicare determine if they may be eligible for the Medicare Savings Programs and Medicare Extra Help – two programs that help cover health care costs for people with low and moderate incomes.

To learn more about the 2022 Nationwide Retirement Institute Health Care Costs in Retirement consumer survey, visit www.nationwide.com/health careinsights.com. In addition, financial professionals can visit www.nationwidefinancial.com/health careinsights to learn more.

Survey Methodology
The research was conducted online in the United States by The Harris Poll on behalf of Nationwide among 1,140 adults age 18+ residing in the U.S. (“national sample”), including 283 Gen Z (18-25), 285 Millennials (26-41), 286 Gen X (42-57), 286 Boomers+ (58+).  The survey was conducted August 26 – September 8, 2022.  Data are weighted where necessary for those age 26+ by age by gender, race/ethnicity, region, education, marital status, household size, household income and propensity to be online to bring them in line with their actual proportions in the population. Gen Z (18-25) data are weighted by age by gender, race/ethnicity, region, education, size of household and propensity to be online. 

About The Harris Poll 
The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works 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. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing.

When it comes to health care in particular, tough choices today can mean bigger problems down the road. A new Nationwide Retirement Institute® survey finds that inflation has many Americans forced to make troubling choices including stopping taking a prescribed medicine: 10% say they have, and another 13% are considering doing so this year. A similar number (10% and 15%, respectively) say they’ve cancelled or postponed a medical procedure or are thinking of doing so.

Despite squeezing every penny, a fully 49% of Americans say their health care expenses have gone up this year – with no relief expected anytime soon. A third (32%) worry their monthly health care premium will increase and 40% expect their prescription drug costs will increase. Naturally, inflation has become Americans’ top stressor on retirement planning, which involves planning for medical costs as one ages.

“As the price of health care services and food reaches record highs, Americans have been forced to make tough decisions that sacrifice their health and wellbeing,” said Kristi Rodriguez, senior vice president of the Nationwide Retirement Institute. “While these decisions are understandable, these short-term tradeoffs may have long-term repercussions. Neglecting your health now can lead to far bigger costs as you age and approach retirement. Now is a critical time to consult with a financial professional to create a plan that prioritizes health care and sets you up to have access to the health care services you will need in retirement.”

More than one in ten Americans (12%) say they canceled or changed their health insurance coverage this year and another 14% say they are considering cancelling or changing their health insurance as open enrollment approaches at year’s end.

At the same time, 10% say they’ve already diverted funds from retirement savings to pay for health care expenses, either by cutting contributions or by taking withdrawals from their retirement plans. On a positive note, even more say they’ve started or increased Health Savings Account (HSA) contributions in the past year, and another 14% are considering it. This allows people with high deductible plans to set aside pre-tax money to pay for qualifying medical expenses.

One area of potential relief for those already age 65 and over is reviewing their Medicare plans during open enrollment, which runs through December 7. According to the National Council on Aging, only about 10% of people switch Medicare plans each year during open enrollment, which could mean they’re overspending for coverage they don’t need or use.

Nationwide is urging financial professionals to stress planning for health costs when working with clients: nearly three quarters (72%) of Americans say spiraling health care costs are one of their top fears about retirement, but only 39% say they have a plan to pay for health care costs in retirement.

“The role financial professionals play in creating more secure financial futures for their clients is even more important during high inflation,” Rodriguez said. “By incorporating health care into financial planning conversations, financial professionals can help clients better prepare.”

To learn more about the 2022 Nationwide Retirement Institute Health Care Costs in Retirement consumer survey, visit www.nationwide.com/healthcareinsights.com. 

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New research from Nationwide Retirement Institute finds that the majority of U.S. parents (60%) cite inflation or rising living costs among their top financial concerns looking ahead at the next 12 months and a full 88% expecting an overall economic downturn in the next year. Less than half of parents (45%) have a positive perception of their family’s financial situation; nearly four in five say inflation and rising prices will influence their vote in the 2022 mid-term elections.

Only about half of U.S. parents feel confident they will be able to save enough for retirement or their children’s education, and only 48% say they are on track to meet their financial goals. While parents overwhelmingly want support with their family’s finances, more are turning to family and friends (56%) and prayer (29%) than a professional (27%) for financial advice. This is a reversal of previous trends Nationwide has seen, when more Americans said they were working with or planning to work with a financial professional.  

“With the cost of living high and fear of a recession looming, parents’ confidence in their family’s financial situation is waning,” said Kristi Rodriguez, senior vice president of Nationwide Retirement Institute. “It’s understandable that families are looking for comfort during this difficult time, whether with friends and family or through their faith, but one of the most important steps they can take is to connect with a financial professional and create a plan.”

Parents are making major lifestyle changes to offset inflation
In response to inflation pressures, U.S. parents are pulling back on discretionary spending by:

• Dining out less often (48%)
• Reducing how much they drive (41%)
• Purchasing different or cheaper items than they typically would (41%)

They are also relying more on credit to pay for items, with one in four (23%) reporting they have accumulated additional credit card debt and another 16% saying they’ve used ‘buy now, pay later’ apps or services in response to inflation. Again, adding debt as interest rates rise could end up making their situation worse. 

The study also found that inflation is hitting young families hardest. Parents in Generation Z – those born between 1997 and 2012 –  are leaning on safety nets. Twenty one percent received food or household goods from a food bank and 14% have moved in with family members in the past year. About three in four Gen Z parents (74%) report that they live paycheck to paycheck most of the time and nearly a third (29%) rate their family’s financial situation as ‘poor’ — almost double the average for U.S. parents overall.

Parents are also looking to their employers for improved benefits to help balance work and childcare. Nearly half of parents (48%) want to see increased flexibility in work hours, and more than a third (39%) want improved health insurance benefits. Nearly a quarter (23%) of parents want improved parental leave policies.

Rodriguez said financial professionals can help families with planning and other financial decisions such as maximizing workplace benefits. “Financial professionals are not just for the wealthy; you can find one who will understand your unique needs and your personal situation,” Rodriguez said.

Even those who may not be able to afford a traditional financial professional can benefit from being proactive and seeking out financial information that could help them through this tough time. “There’s more information online than ever, so you can find credible sources that can provide help,” Rodriguez said. “Just as with your health, it’s important to be proactive and seek preventative care rather than allowing things to get worse.”

For more detail on the Nationwide Family Finances survey and methodology, you may view the full report here.

This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.

This information is general in nature and is not intended to be tax, legal, accounting or other professional advice. The information provided is based on current laws, which are subject to change at any time, and has not been endorsed by any government agency.

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC.

Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company © Nationwide 2022

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This volatile environment is contributing to a grim outlook on the future, with 88% of parents expecting an economic downturn in the next year. Only about half of U.S. parents feel confident they will be able to save enough for retirement or their children’s education, and only 48% say they are on track to meet their financial goals.

While parents overwhelmingly want support with their family’s finances, more are turning to family and friends (56%) and prayer (29%) than a professional (27%) for financial advice. 

“With the cost of living high and fear of a recession looming, parents’ confidence in their family’s financial situation is waning,” said Kristi Rodriguez, senior vice president of Nationwide Retirement Institute. “It’s understandable that families are looking for comfort during this difficult time, whether with friends and family or through their faith, but the most important step they can take is to connect with a financial professional and create a plan.”

Parents are making major lifestyle changes to offset inflation
In response to inflation pressures, U.S. parents are pulling back on discretionary spending. The top actions include:

• Dining out less often (48%)
• Reducing how much they drive (41%)
• Purchasing different or cheaper items than they typically would (41%)

They are also relying more on credit to pay for items, with one in four (23%) reporting they have accumulated additional credit card debt and another 16% saying they’ve used ‘buy now, pay later’ apps or services in response to inflation.

Gen Z families are faring worse due to inflation
The study also found the inflationary squeeze is hitting Gen Z particularly hard, and they are leaning on safety nets to soften the blow. Twenty one percent received food or household goods from a food bank and 14% have moved in with family members in the past year, compared to the average of parents at 13% and 6%, respectively. Roughly three in four Gen Z parents (74%) report that they live paycheck to paycheck most of the time and nearly a third (29%) rate their family’s financial situation as ‘poor’ — almost double the average for U.S. parents overall.

The study revealed three key areas where Gen Z parents are struggling the most:

• Paying for childcare: Roughly three in 10 (32%) Gen Z parents report they spend 50% or more of their take home pay on childcare, and one in five (21%) say they took on another job in the past year to better meet the needs of their children — nearly 10 percentage points higher than the national average for parents. Another one in 10 (9%) quit their job this year to focus on childcare.
• Finding affordable housing: Despite homeownership being a top goal for 40% of Gen Z parents, half (49%) cite the cost of rent or housing as one of their top financial concerns — 21 points higher than among U.S. parents overall.
• Planning for their family’s finances: Two in five (39%) Gen Z parents report they did not do any financial planning before they had children, compared to 28% of the national average. Another 87% of Gen Z parents say they wished they started saving or investing earlier.

Parents are taking their concerns to their employers
Parents are looking to their employers for improved benefits to help balance work and childcare. Nearly half of parents (48%) want to see increased flexibility in work hours, and more than a third (39%) want improved health insurance benefits. Nearly a quarter (23%) of parents want improved parental leave policies.

“While each family’s path to financial wellness is unique, our survey clearly demonstrates that there’s an immediate opportunity for financial professionals to help build confidence and security through financial literacy, especially for younger families who are struggling in today’s economic environment,” added Rodriguez. “Financial professionals can help with planning and other financial decisions such as maximizing workplace benefits to help families solve some immediate financial concerns.”

Financial professionals can help clients stay on top of changes in the economy and the markets with insights from Nationwide.

Methodology
Edelman Data and Intelligence (DxI) conducted an online survey on behalf of Nationwide of 1,000 nationally representative adult U.S. parents ages 18 and over with children under the age of 18 and 150 Gen Z parents with children under the age of 7. The survey was fielded from July 11 through July 21, 2022.

• My Medicare Matters®: Helps adults choose the best Medicare plan for their situation
• Health & Long-Term Care Cost Assessment: Provides solutions that may help individuals fill income gaps and cover healthcare costs in retirement
• BenefitsCheckUp: Connects eligible older adults to 2,500+ benefit programs to help pay for daily needs

Nationwide and NCOA are separate and non-affiliated companies.

My Medicare Matters® is a registered trademark of the National Council on Aging.

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. The Nationwide Retirement Institute is a division of NISC.

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Black millennials report carrying substantially more medical debt compared to other generations. Of those respondents who could estimate their medical debt, Black millennials self-reported they have on average $11,469 in medical debt. That’s four times higher than Black Gen Xers ($2,818) and ten times more than Black baby boomers ($1,111).

The outsized medical debt carried by Black millennials is already impacting their financial outlook and decision making. Fifty-seven percent say health care expenses have impacted their financial health, compared to 40% of Black Gen Xers and 18% of Black baby boomers. Digging deeper into the repercussions:

• More than a third of Black millennials (35%) have skipped or delayed getting care to save on medical expenses, compared to just 19% of Black Gen Xers and 13% of Black baby boomers.
• More than half of Black millennials (57%) say they have been negatively impacted by financial stress, compared to 46% of Black Gen Xers and 27% of Black baby boomers.
• Of the Black millennials negatively impacted by financial stress, 40% say it has impacted their relationships and 20% say it impacted their overall health.

“While each person’s path to financial wellness and wealth will be unique, our latest data clearly demonstrates that young Black Americans collectively face a challenge to success posed by the cost of health care,” said Kristi Rodriguez, senior vice president of Nationwide Retirement Institute^®. “For financial professionals, it's now imperative that you understand the impact of health care costs on a long-term financial plan and know which solutions to put into place to ensure client success and confidence."

According to the Centers for Disease Control, Black Americans are disproportionately impacted by chronic conditions that drive up their health care costs, and that has only escalated as a result of the pandemic. Black millennials also say they have spent on average $6,145 on health care costs and personal protective equipment (PPE) during the pandemic. That’s ten times more than Black Gen Xers ($613) and way more than Black baby boomers ($269).

One in five Black millennials (21%) do not have health insurance and those that do are twice as likely to be self-employed and without access to a group plan. By comparison, 17% of Black Gen Xers do not have health insurance and only 2% of Black baby boomers lack health insurance.

How financial professionals can support
The good news is that 40% of Black millennials have a financial professional – a substantially higher proportion than older generations (Black Gen Xers 27%, Black baby boomers 19%). And of those millennials that have a financial professional, 77% say they talk to him or her about how their health and wellbeing impacts their wealth.

“Black millennials are right to worry about health care costs in retirement – especially if they have a chronic condition,” Rodriguez said. “By incorporating health care into financial planning conversations, financial professionals can help clients create a more secure and comfortable financial future.”

Financial professionals can click here to learn more about Nationwide’s diverse insights and resources.

Methodology
The Nationwide Retirement Institute Health Care survey was conducted online Aug 5 – 24, 2021 within the United States of 1,817 adults including an oversample of 563 Black Americans (202 Black millennials, 178 Black Gen Xers, 183 Black baby boomers) aged 25 and over by The Harris Poll on behalf of The Nationwide Retirement Institute.

Respondents for these surveys were selected from among those who have agreed to participate in our surveys. Because the sample is based on those who agreed to participate in the online panel, no estimates of theoretical sampling error can be calculated. Data are weighted where necessary by age by gender, race/ethnicity, region, education, income, marital status, household size, and propensity to be online to bring them in line with their actual proportions in the population.

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 and 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.

These are among the findings of new research conducted by the National Council on Aging (NCOA) in partnership with Nationwide® that show how women preparing for their futures are challenged with navigating these obstacles on the path to financial security in retirement. The NCOA and Nationwide partnered to better understand these barriers women over the age of 50 are facing.

Watch an engaging discussion* between Ramsey Alwin, NCOA’s President and CEO, and Kristi Martin Rodriguez, senior vice president of Nationwide Retirement Institute®, as they share insights and advice to help women overcome the challenges of longevity in retirement, long-term care, and caregiving. 

“The health and wealth of their loved ones are deeply personal for women,” said Rodriguez. “Women are living longer and so they need to think about retirement longevity. Finding a trusted financial professional can help women better understand ways to manage their retirement that may include caring for their loved ones or themselves.”

The majority of women have served or are currently serving as a caregiver. Over 70% of women say caregiving is a strain on their finances. “We bear a badge of ‘caregiver and chief’ as women, sometimes identifying and other times not self-identifying, just doing what needs to be done in regard to caregiving because that’s what family does,” said Alwin. “It’s so wonderful, yet there are financial consequences to those caregiving obligations that women know too well.”

“Additionally, both Nationwide and NCOA are tremendous supporters and advocates for the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, which seeks to expand employee access to retirement savings plans, makes it easier for employers to enroll employees in these plans, and allows individuals experiencing a financial emergency to access a portion of their retirement savings. The ability to access your retirement savings for a financial emergency can be life changing for women,” Rodriguez added.  

Nationwide and NCOA offer additional financial planning resources for women or their loved ones to utilize free of charge:

• My Medicare Matters: Helps adults choose the best Medicare plan for their situation
• Health & Long-Term Care Cost Assessment: Provides solutions that may help individuals fill income gaps and cover healthcare costs in retirement
• BenefitsCheckUp: Connects eligible older adults to 2,500+ benefit programs to help pay for daily needs
• Age Well Planner: Offers personalized resources, tools, and expert help to age well

Learn more about the Women and Retirement survey results or additional NCOA research.

*To watch the What Women Want in Retirement discussion, log in or create a free account on the NCOA website by entering your information in the left-side column.   

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Nationwide and NCOA are separate and non-affiliated companies. Nationwide is not affiliated and does not endorse any of the Medicare Broker Partners that are used in the My Medicare Matters program.

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus. Ohio.  The Nationwide Retirement Institute is a division of NISC.

The ThinkAdvisor Luminary Awards honors individuals and firms that are taking the most creative and the boldest steps to push the industry and clients’ best interests forward, while having the biggest impact, shining a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.

FARE was honored in the Diversity & Inclusion category, which honors firms and organizations that meaningfully embrace and genuinely strive to incorporate individuals of different ethnicities, genders, ages, religions, disabilities and sexual orientations through creative and effective programs within their organizations and within their community.

“It’s exciting to be part of this tremendous coalition of financial services firms, partners and academic institutions,” said Kristi Martin Rodriguez, SVP of the Nationwide Retirement Institute. “This award is a testament to the commitment of our members who have come together to form FARE and drive meaningful change in our industry.”

FARE was formed in late 2020 when a group of leading financial services organizations, associations and historically Black colleges and universities (HBCUs) came together to focus on increasing the number of Black professionals entering the financial services industry and supporting and investing in them once there. FARE’s efforts include providing resources, scholarships training and connections to diverse students and professionals, which are important components to career success.

The FARE coalition includes Morgan Stanley, M Financial Group, NFP, Employee Benefit Research Institute, Huntington Bank, Franklin Templeton, Miami Life, Advisor Group, DCIIA, the American College of Financial Services, Capital Group and Nationwide, in partnership with six HBCUs, including Hampton University, Howard University, Lincoln University, Virginia State University, Virginia Union University and Winston-Salem State University. 

FARE was recently honored with a Diversity Champion Award by Investment News and a WealthManagement.com industry award. 

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In addition to being able to receive the care they need, it’s imperative for Americans to save so they can prepare for potentially disruptive events in the future. More than two-thirds of Americans (69%) believe there will be another pandemic in America in their lifetime and 68% believe there will be another market crash in the next five years.

“The COVID-19 pandemic has made health and wellness more of a priority for Americans, but many don’t know how to save and plan for escalating health care costs,” said Kristi Rodriguez, Senior Vice President of the Nationwide Retirement Institute®. “While $5,000 may seem like a lot to save for an unexpected expense, a trip to the emergency room or a hospital stay could easily add up to this cost. The past couple of years have shown us we need to prepare for the unexpected, and that must include planning for health care expenses.”

The Impact of Health Care Costs on Long-Term Planning
Americans’ concerns for the future extend to health care planning in retirement. More than two-thirds (68%) of adults say one of their biggest fears in retirement is health care costs going out of control and almost half (47%) are not confident in their ability to manage and pay for necessary health care costs in retirement. This lack of confidence may be driven by stresses about planning for inflation (36%), the belief that the Social Security Administration will run out of funds (28%) and paying higher taxes (19%) in retirement.

The Education Gaps Around Saving for Health Care Costs
The survey also revealed that Americans’ fears around health care costs in retirement may also be because adults aren’t properly leveraging savings vehicles and resources. For example, just one-third of adults (35%) with an employer-sponsored health savings account (HSA) contribute to it. This may simply be because adults don’t understand how HSAs work, with almost half of non-retired adults (48%) reporting they don’t know the advantages of an HSA. Key misunderstandings among adults include:

• 71% don’t know money withdrawn from an HSA to pay for qualified health expenses is not taxed
• 70% don’t know money voluntarily contributed to an HSA from their paycheck is not taxed
• 77% don’t know that money accumulated in an HSA can grow tax-deferred

These education gaps extend to Medicare as well. The majority of adults (70%) say they wish they understood Medicare coverage better. Another 43% and 37%, respectively, reported they don’t know what Medigap and Medicare Advantage are.

However, most Americans with a financial professional (61%) say they want to talk with them about how their health and wellbeing impact their wealth — revealing an opportunity for financial professionals to engage in conversations with consumers.

“As the role of financial professionals evolves amid the pandemic, it is crucial for them to strengthen the connection between health and wealth and encourage clients to develop plans that help them stay healthy while preparing for the rising costs of health care,” Rodriguez said. “By incorporating health care into financial planning conversations, financial professionals can help clients create a more secure and comfortable financial future.”

To help financial professionals guide these conversations, Nationwide’s Health Care Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data to help financial professionals and clients estimate future medical and long-term care expenses. To help guide clients through their Medicare options, Nationwide^® teamed up with the National Council on Aging (NCOA) to create the NCOA My Medicare Matters® tool brought to you by Nationwide. Consumers can learn more and complete an assessment at https://nationwide.mymedicarematters.org/.

To learn more about the 2021 Nationwide Retirement Institute Health Care Costs in Retirement consumer survey, visit www.nationwide.com/healthcareinsights.com. In addition, financial professionals can visit www.nationwidefinancial.com/healthcareinsights to learn more.

Methodology
The 2021 Nationwide Retirement Institute Health Care survey was conducted online within the United States of 1,817 adults aged 25 and over by The Harris Poll on behalf of The Nationwide Retirement Institute.

Respondents for these surveys were selected from among those who have agreed to participate in our surveys. Because the sample is based on those who agreed to participate in the online panel, no estimates of theoretical sampling error can be calculated. Data are weighted where necessary by age by gender, race/ethnicity, region, education, income, marital status, household size, and propensity to be online to bring them in line with their actual proportions in the population.

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 and 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.

Today, FARE was recognized by InvestmentNews as a 2021 Excellence in Diversity, Equity and Inclusion Awards finalist. FARE, along with 15 other firms, were chosen from more than 120 nominations by a committee of InvestmentNews representatives and judges from the advice business. FARE was recognized for its ability to inspire others from diverse backgrounds to join, flourish and bring their true selves to work in the financial services industry.

“Since FARE’s inception, we’ve made tremendous progress assembling a prestigious coalition of financial services organizations and academic institutions committed to, not only increasing diversity in our industry, but also positively impacting Black communities by increasing access to financial professionals and financial education,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute. “Our recognition as a finalist for the InvestmentNews Diversity Equity & Inclusion Awards is a great honor for the alliance and evidence that our efforts are beginning to gain broader engagement and traction across our industry.”

The FARE coalition currently includes Morgan Stanley, M Financial Group, NFP, Employee Benefit Research Institute, Huntington Bank, Franklin Templeton, Miami Life, National Brokerage Atlantic and Nationwide in partnership with six HBCUs, including Hampton University, Howard University, Lincoln University, Virginia State University, Virginia Union University and Winston-Salem State University. 

InvestmentNews’ fourth annual Excellence in Diversity, Equity and Inclusion recognition program aims to tell the story of individuals and firms using their success, leadership skills, and willingness to implement and advocate for diversity and inclusion within the financial advisory industry. FARE, along with the other organizations and individuals making the fourth annual Excellence in Diversity, Equity and Inclusion list, is highlighted in the Aug. 9 issue of InvestmentNews and online at dandiIN.com.

*Nationwide Retirement Institute RISE Research 2018

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A new Nationwide Retirement Institute® survey conducted by The Harris Poll in May 2020 reveals over half of Millennials (52%) and Gen Xers (57%) have had certain aspects of their health and/or finances directly impacted by the pandemic, compared to 37% of Boomers+. In addition, nearly 2 in 5 Millennials (39%) and Gen Xers (37%) say COVID-19 has already impacted their retirement plans, compared to 1 in 5 Boomers+ (19%).

“Health care costs have long been a stressful topic for Americans, and even more so during the COVID-19 pandemic,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute. “In fact, nearly three in four Americans across all generations worry even more now about their family’s health than they did before the pandemic. And all too often, that stress can impact their physical health as well as their mental health.”

Much of this concern, particularly for Millennials and Gen Xers may be connected to the costs associated with health care, given nearly half report their financial health has been negatively impacted by health care costs (46% and 44% vs. 22% of Boomers+). A surprise health scare could also trigger a worse financial situation, since over a quarter of Americans (27%) say they wouldn’t be able to pay off an unexpected $5,000 out-of-pocket medical bill today.

The uncertainty of health care costs in retirement also worries all generations, but especially Gen Xers, with a majority saying one of their top fears in retirement is their health care costs getting out of control (81% Gen Xers vs. 74% Millennials and 71% Boomers+). Most Americans, again especially Gen Xers but also Millennials, are also terrified of what health care costs may do to their retirement plans (70% Millennials, 77% Gen Xers vs. 58% Boomers+), as well as terrified of what a global health care crisis (such as COVID-19) may do to their retirement plans (73% Millennials, 81% Gen Xers vs. 62% Boomers+).

The stress of health care costs could also be worsening younger Americans’ wellness, with 53% of Millennials and 42% of Gen Xers saying some aspect of their life has been negatively affected by financial stress. And about half of Millennials and Gen Xers say social isolation during the pandemic has had a negative impact on their mental (55% and 53%) or physical health (50% and 47%), compared to a third or fewer Boomers+ (33% and 28% respectively).

Lack of prioritizing preventative care

While younger generations are more likely to report wanting to do more to prioritize their health (83% Millennials and 85% Gen Xers, compared to 72% Boomers+), they are less likely to have taken the steps to address their health concerns through preventative care. While Millennials and Gen Xers are aware of the benefits these actions can have –most agree that years from now, they’ll say they wish they would have taken better care of their health (67% Millennials, 68% Gen Xers vs. 54% Boomers+) – they are not taking steps to address these concerns.

• Younger generations are less likely to have received certain preventative care services such as physical or well-checks, preventative screenings, or flu shots or other immunizations in the past year (64% Millennials, 79% Gen Xers, 89% Boomers+)
• Half of Millennials (52%) and Gen Xers (51%) have done something to save on medical related expenses, most commonly altering a medication regimen (32% and 32%) or delaying or skipping care (30% and 31%)
• 43% of Millennials and 49% of Gen Xers who haven’t received preventative care say they don’t know why they haven’t

Relying on financial professionals

More than a quarter of Americans (30%) say COVID-19 has impacted their retirement or their retirement plans. Most of those who have financial professionals say they are relying on them more than ever due to COVID-19 (Millennials 79%, Gen Xers 70%, Boomers+ 52%) and about one in four Millennials (30%) and Gen Xers (24%) who don’t have a financial professional say they plan to engage one due to COVID-19.

As the role of financial professionals evolves amid COVID-19, it is crucial to provide guidance around health care costs in and out of retirement with clients. This is especially important for Millennials, with over a quarter (27%) now expecting their financial professional to provide guidance on near-term health care costs. In addition, the average American lacks knowledge about health care costs, with only a third saying they feel knowledgeable about how much they’ll need to cover health care costs in retirement (35% Millennials, 35% Gen Xers, 30% Boomers+).

“Although many adults are concerned about health care costs in retirement or in their later years, many are not having informed discussions with professionals on how to prepare,” said Rodriguez. "Working with a financial professional and taking advantage of online planning tools can help adults both young and old reach their personal goals. In addition, talking about your plan with someone can help ease anxiety and reduce stress during this uncertain time.”

To help financial professionals guide these conversations, Nationwide’s Health Care Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data such as personal health and lifestyle information, health care costs, and medical coverage. It provides a meaningful, personalized cost estimate that will help financial professionals and clients estimate future medical and long-term care expenses.

To learn more about the 2020 Nationwide Retirement Institute Health Care Costs in Retirement consumer survey, visit www.nationwide.com/healthcareinsights.com. In addition, financial professionals can visit www.nationwidefinancial.com/healthcareinsights to learn more.

Methodology

The 2020 Nationwide Retirement Institute Health Care survey was conducted online within the United States between May 7-26, 2020 among 1,940 adults aged 24 and over by The Harris Poll on behalf of The Nationwide Retirement Institute.

Respondents for these surveys were selected from among those who have agreed to participate in our surveys. Because the sample is based on those who agreed to participate in the online panel, no estimates of theoretical sampling error can be calculated. Data are weighted where necessary by age by gender, race/ethnicity, region, education, income, marital status, household size, and propensity to be online to bring them in line with their actual proportions in the population.

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 and 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 NCOA My Medicare Matters® tool brought to you by Nationwide educates individuals about Medicare eligibility and walks them through the decisions they need to make. In addition to helping compare plan options and costs, the tool allows consumers to speak with a Medicare broker who will answer their questions and help them enroll in a Medicare plan.

“The array of Medicare options facing those about to turn 65 can be intimidating. One of the most important services financial professionals can provide when planning for retirement is offering Medicare guidance,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute^®. “It's important for financial professionals to talk with their clients about Medicare and the out-of-pocket costs they will likely face.”

With approximately 3.65 million Americans becoming Medicare eligible every year through 2030*, clients working with financial professionals expect them to help with Medicare decisions.

“Financial professionals can add value to their relationships by addressing their clients’ request for guidance without having to become a Medicare expert,” Rodriguez added. Nationwide Retirement Institute’s robust Medicare education toolset now includes a new NCOA My Medicare Matters portal that financial professionals can use to invite their clients to use My Medicare Matters and support their journey through the Medicare landscape. “This unbiased tool allows you to play a helpful role without walking your clients through every step of the enrollment process.”

“Many people enter their later years unaware of how challenging health care costs can be as they age,” said Ramsey Alwin, President and CEO of the National Council on Aging. “My Medicare Matters is designed to make it easier for people to make informed and confident choices about their Medicare coverage.”

Financial Professionals can access the tool at: https://nationwidefinancial.com/nationwide-retirement-institute/medicare/my-medicare-matters-tool

“It has been just over one month since COVID-19 was declared a global pandemic, and it is taking a toll on every aspect of our lives,” said John Carter, President and COO, Nationwide Financial. “People are struggling, they are making sacrifices, and we firmly believe that their health and safety should be everyone’s top priority right now. We are also committed to helping Americans protect their financial health for the long term. Our latest research identifies areas where they are challenged and looking for guidance.”

Roughly one quarter of respondents (24%) and the subset of investors (26%) are seeking help by engaging a financial advisor for the first time ever as a result of the pandemic. These are among the findings revealed by a new study from the Nationwide Retirement Institute of more than 2,000 American adults age 18+, including over 600 U.S. investors with investable assets of $100,000 or more, conducted online by The Harris Poll. The poll was conducted in April 2020.

“Right now, Americans feel a lack of control and a need for more guidance,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute. “Even if they do all the right things to manage their finances and investments, the vast majority of Americans, including 80% of all respondents and 85% of investors, agree they can still be blindsided by outside events. According to 49% of respondents and 52% of investors, the COVID-19 pandemic made them realize that they need help managing their finances and investments to succeed in the future.”

Loss of Control and Need for Guidance

When asked how they feel about the impact of COVID-19 on their current personal finances, all respondents and investors are most likely to say they are cautious (38% and 41%, respectively) or uncertain (32% and 28%). If there is any silver lining, it is that roughly two in ten say they feel optimistic (18% respondents and 22% investors) and only a few say they feel hopeless (7% and 5%, respectively).

Advisors top the list of trusted sources for general financial and money management advice during the pandemic. All respondents say their top choices include a financial advisor (37%), friends & family (29%), online investment management/financial planning tools (20%) and their employer sponsored retirement plan (20%). Investors say their top choices include a financial advisor (55%), with friends and family a distant second (26%), followed by online investment management/financial planning tools (25%) and their employer sponsored retirement plan (24%).

Less than one-third of respondents (31%) already had an advisor, compared to more than half of investors (58%). More than one-third of respondents (35%) and nearly half of investors (49%) are now relying on a financial advisor more than ever due to the impact of the COVID-19 pandemic. But nearly two in ten respondents (19%) and 14% of investors say they don’t trust anyone for financial advice during the pandemic.

Top Financial Concerns and Meeting Immediate Needs

While roughly one-quarter of respondents (24%) and one-third of investors (31%) do not expect the pandemic to impact their ability to meet their financial obligations, the majority of Americans are now feeling pressure.

Among all respondents, the top three financial concerns related to the COVID-19 pandemic are being unable to pay bills or meet their financial obligations (45%), losing their life's savings (33%) and losing their employment (30%). Among investors, the top three financial concerns related to the pandemic include losing their life’s savings (41%), being unable to pay bills or meet financial obligations (34%), while they are equally worried about being unable to afford healthcare and being unable to retire as planned (both 28%).

When it comes to meeting their financial obligations if impacted by COVID-19, roughly one-third of Americans, including 32% of all respondents and 36% of investors, will tap their savings. Respondents overall are somewhat more likely than the subset of investors to need other sources such as delaying paying bills (24% vs 19%, respectively), relying on one-time payment from the stimulus package (22% vs 15%), relying on help from family and friends (19% vs 15%), and relying on unemployment insurance (13% vs 10%). Both are almost equally likely to increase credit card debt (18% vs 17%).

Solutions for Protecting Financial Futures and Loved Ones 

Heightened uncertainty and complexity are driving a need for greater financial protection. Roughly half of respondents and investors agree that the COVID-19 pandemic has made them recognize the need for annuities to protect their investments against market risk (47% and 51%, respectively) and to protect their retirement income (48% and 51%). More than half of respondents and investors also say the pandemic has made them recognize the need for life insurance (57% and 55%).

Americans are also worried about protecting their families and loved ones. Roughly four in ten of all respondents and investors are concerned the COVID-19 pandemic will impact their ability to fulfill potential caregiving responsibilities for others due to financial strain (44% and 41%) or due to their own illness caused by COVID-19 (42% and 40%). The majority of respondents and investors (56% and 57%) also say that the pandemic has made them recognize the need for long-term care insurance for themselves and the people they care about.

Staying the Course for the Long Term 

While the pandemic impacts immediate financial needs and the ability to care for family and loved ones, 42% of Americans say they are staying the course with their long-term investments.

When managing their qualified retirement savings plans, such as their 401(k), 403(b), 457 and IRA, in response to COVID-19, nearly half of all respondents and investors say they will make no change and stay the course (42% vs 50%, respectively). If making changes to their qualified plans, respondents and investors are somewhat more likely to move to a more conservative allocation (14% and 19%, respectively), and somewhat less likely to move to a more aggressive allocation (10% and 15%). However, respondents overall are less likely than the subset of investors to increase contributions (10% vs 16%) but also somewhat less likely to decrease contributions (10% vs 14%).

When managing their other investments, such as stocks, bonds, mutual funds and ETFs, in response to the COVID-19 pandemic, many respondents and investors also say they will make no change and stay the course (35% and 42%). If making changes to their other investments, respondents are most likely to move their portfolio to a more conservative allocation (14%) or invest more in the stock market (13%), while only 10% would take money out of the stock market and only 9% would move their portfolio to a more aggressive allocation. Investors making changes to their other investments are most likely to invest more in the stock market (22%) or move their portfolio to a more conservative allocation (19%), while 15% would take money out of the stock market and 14% would move their portfolio to a more aggressive allocation.

While respondents overall are somewhat less likely than the subset of investors to meet financial obligations, if impacted by COVID-19, by selling shares in qualified retirement plans (10% vs 16%), this may in part reflect the fact that nearly two in ten respondents (18%) don’t have a qualified retirement savings plan, whereas only 4% of investors do not. Likewise, while respondents overall are less likely than the subset of investors to meet their financial obligations by selling shares in non-qualified investments (8% vs 16%), this may also reflect the fact that nearly one quarter of respondents (24%) don’t have these other investments, whereas just 6% of investors do not.

Nationwide offers this resource to help consumers find a financial advisor that’s right for them.

Methodology

This survey was conducted online within the United States between April 8-10, 2020 among 2,042 adults (aged 18 and over) by The Harris Poll on behalf of Nationwide via its Harris On Demand omnibus product. This sample included 603 investors defined as those adults with investable assets of $100K+. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online.

Respondents for this survey were selected from among those who have agreed to participate in our surveys. Because the sample is based on those who agreed to participate in the online 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.

Nationwide’s venture capital team has invested in the Series A for Vesta Healthcare, the 24/7 technology and clinical services dedicated to supporting caregivers and connecting their insights to the rest of the care team. The funding comes from Nationwide’s $100 million venture capital investment fund.

“Caregivers have a huge impact on a person’s ability to live comfortably in retirement. We are thrilled to support Vesta in connecting home caregivers to the clinical environment to create a meaningful impact on people’s daily health,” says Erik Ross, head of Nationwide’s venture capital team. “We see our investment as embodying Nationwide’s mission of protecting people, businesses and futures with extraordinary care.”

Vesta Healthcare improves health outcomes for seniors with high and rising health needs by connecting in-home caregiver insights, advanced analytics and 24/7 telehealth with the patient’s surrounding care team. 

“People want to live at home as they age, but too often do not have the support they need to do so safely and comfortably. We support and engage high needs seniors and their caregivers by capturing daily insights and providing timely and personalized information, tools and clinical support. In doing so we provide peace of mind while preventing unnecessary emergency room visits, hospitalizations, and nursing home stays” said Randy Klein, Chief Executive Officer at Vesta Healthcare. “We are delighted to have an experienced, passionate and dedicated investor like Nationwide investing in us who shares our vision of meaningfully impacting people’s daily health by creating engaging and supportive tools for caregivers.    

While caregiving is emotionally rewarding, the job is difficult. Caregivers spend an average of 40 hours per week caregiving and often have to put their own life on hold.

“Our survey reveals the effects of caregiving include added stress in balancing things (48%), negatively affecting one’s own health (23%), putting a strain on their marriage (17%) and even needing to take a leave of absence (10%),” said Kristi Rodriguez, vice president of Thought Leadership for Nationwide. “Caregiving can be intensive and time-consuming. Finding ways to help them do this difficult job is important.” 

Additionally, Nationwide has partnered with KINETIC, makers of a smart wearable device and software platform designed to reduce workplace injuries, which last year cost U.S. employers almost $60 billion. 

“Given the magnitude and cost of the problem, it was surprising to see the lack of technological solutions in the marketplace,” says Haytham Elhawary, CEO and co-founder of the KINETIC. “It’s not just the injury rates and their accompanying expense that are costing employers. It’s everything that comes along with it - the lost workdays, the overtime, rehiring and retraining new employees. There’s also the human side of those injuries. My mother worked as a nurse when I was growing up and I remember her suffering multiple injuries while on the job and often coming home in pain. An injury at work affects every aspect of your life and your ability to provide for your family. We’re thankful to Nationwide for partnering with us as we work to reduce workplace injuries.” 

The device helps workers move with better body mechanics by providing real-time feedback in the form of a vibration to the wearer, reinforcing safer body mechanics every time a risky motion occurs. An accompanying dashboard helps managers understand where their next injury might happen, by showing increases in risk by department, time of day or job type.

KINETIC has been successful in reducing OSHA recordable injury rates and lost workdays by 54% and 88% respectively. KINETIC has been deployed to over 21,000 workers at over 150 locations, including six, Fortune 50 companies. Through the Nationwide partnership, they are expecting to dramatically expand their reach.

The Vesta Healthcare and KINETIC announcements are part of Nationwide’s commitment to invest more than $100 million of venture capital in customer-centric solutions. 

Nationwide’s venture capital team has made several recent investments, including: Upstream Security, Socotra, Betterview, Nexar, BlueVine, blooom, Insurify, Next Insurance, Matic and Sure.

Nationwide’s innovation journey

In addition to Nationwide’s venture capital efforts, the company has implemented other new solutions to meet member needs now and, in the future, including:

• In December 2019, Nationwide opened The CoOperative - a new innovation center in the Arena District near its Columbus, Ohio-based headquarters.

• In September, Nationwide announced the launch of Spire - a simple, easy-to-understand digital auto insurance platform, built on fair and straightforward principles and designed to be convenient and accessible from your phone. Spire is now available for purchase in Texas.

About Vesta Healthcare 

Vesta Healthcare is an industry-leading technology and clinical services organization, dedicated to connecting caregiver insights to the rest of the care team. Vesta Healthcare proactively identifies the need for additional resources in the home and provides 24/7 telehealth support for caregivers and care recipients, with a focus on high-need, frail senior populations. Vesta partners with home care agencies, health plans and providers to create value-based population health programs that emphasize clinical quality, improved health outcomes and personalized engagement. Vesta Healthcare is headquartered in New York, NY. To learn more visit www.vestahealthcare.com and follow us on LinkedIn and Twitter. 

About KINETIC

KINETIC is developing the next generation of technology tools to enable a connected industrial workforce. Its smart wearable device and analytics platform reduces workplace injuries and improves productivity for industrial workers. KINETIC is based in NYC and has deployed its product to over 21,000 workers, mostly in the manufacturing and logistics space. Learn more at www.wearkinetic.com