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

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

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

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

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

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

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

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

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

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

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

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

Learn more on the Nationwide Advisor Advocate Blog.

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

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A quarter (25%) of single investors say they did not plan to be alone in retirement and nearly the same share (22%) say they are scared to grow old alone. Only a small group (9%) say they enjoy the independence of being single in retirement. Despite these challenges, single investors remain optimistic about finding new love, with a quarter (26%) still hoping to find a partner in retirement.

Those planning for retirement without a partner are bracing for added financial headwinds. More than a third (37%) of single investors say they experience more strain or financial hardship compared to their married or partnered peers, a rate that increases significantly for single investors under 50 years old (44%). Non-retired single investors are concerned about their retirement prospects, with 18% indicating they don’t know if they’ll ever be able to retire.

The amount this cohort has saved for retirement, compared to their perceived target savings goals, shows a significant disconnect. Nearly half (46%) of single investors say they would need up to $600,000 in retirement savings to feel comfortable about their future. Yet, just 23% say they have at least $250,000 saved and only 18% say they have $500,000 or more saved towards retirement.

“Single investors are facing retirement challenges that their coupled counterparts are not, relying solely on their individual saving efforts compared to those with a second source of income from a partner,” said Rona Guymon, senior vice president of Nationwide Annuity Distribution. “It’s not surprising they believe they need to hit a ‘magic number’ in retirement to live comfortably. What’s important to remember is that everyone’s savings goal will vary based on more than just relationship status. It’s good to have an attainable goal, but holistic financial planning with an advisor – who can help address single retirees’ unique needs – is a more constructive way to think about achieving a secure retirement.”

Single and Partnered Investors Vary in Their Approaches

Single investors may be missing some opportunities to optimize their investment approach compared to their coupled counterparts. For example:

• Less than half (49%) of single investors who have a strategy to protect assets against market risks say they focus on diversification of assets or non-correlated assets in their retirement portfolios, compared to 62% of partnered investors.
• About one third (34%) of single investors do not currently have a strategy in place to protect their assets against market risk, compared to 27% of partnered investors.
• Single investors are less likely to turn to an advisor or financial professional for help, with just 35% saying they currently pay to work with one, compared to 46% of partnered investors.

Single investors who do work with a financial professional find the most important benefits of doing so include protecting their assets against market risk (20%), helping them make more informed decisions (15%) and keeping them focused on long-term goals (15%).

For Advisors, Decumulation and Tax Strategies Have Become a Priority

Financial professionals are focused on guiding their single clients toward a stable retirement, ensuring they have the resources and strategies needed to navigate their finances.

Nearly half (49%) of advisors are providing guidance to their single clients approaching retirement on when to claim Social Security benefits, and a similar share (49%) are discussing when to withdraw funds from retirement accounts.

Tax planning is another key area of focus. More than a third (36%) of advisors are developing a plan to combat negative tax impacts traditionally alleviated by spousal income for single clients approaching retirement.

“Whether you’re a single person planning for retirement or a financial professional working with one, it’s important to recognize there are several elements of financial planning that may be different when retiring without a partner,” Guymon said. She highlights the following considerations for single savers to address with their financial professional:

1. Emergency Funds: Building a robust emergency fund is key for single retirees who may not have a secondary source of income from a partner to provide financial stability should adversity arise.
2. Estate Planning: Estate planning may look different for those who don’t have a partner or children. Not only is it important to clarify beneficiaries, but also who will speak on a single retiree’s behalf should they lose the ability to represent themselves.
3. Long-Term Care: Single retirees are less likely to have a natural caregiving solution in place. It’s important to consider long-term care solutions as early as possible in the planning process.
4. Taxes: Without the benefit of filing jointly, single retirees often face higher tax rates compared to married couples without proper tax planning strategies in place.
5. Social Isolation: While this may seem out of scope for some financial professionals, an important part of a single person’s retirement plan should be building a strong support network. Isolation or loneliness can impact emotional well-being, which can lead to poor financial decisions.

“The benefits of working with a trusted advisor are clear when it comes to feeling confident about living in retirement, regardless of relationship status,” Guymon said. “In today’s highly volatile market conditions, advisors should help single investors stay focused on their long-term plan and understand the value of protection solutions, like annuities. This is particularly important for those without the additional security of a partner to fall back on.”

The Nationwide Retirement Institute offers additional resources to help advisor 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 866 single investors in total including 423 women investors, 434 men investors, 460 investors age <50, 406 investors age 50+ as well as 1,658 married or partnered investors.

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.

According to recent survey results from Nationwide, 73% of financial professionals who sell annuities believe they help them retain clients. Additionally, 81% of those with higher production – those who have sold at least 10 annuities in the last 24 months – feel they make their client relationships “stickier.”

“It’s no surprise financial professionals are leveraging annuities in client portfolios as evidenced by another record-breaking year of sales in the annuity industry,” said Rona Guymon, senior vice president of Nationwide Annuity Distribution. “What might be unexpected to some is the long-term relationship that can be built with clients as a result of an annuity purchase. We know annuities are complex investment vehicles that sometimes require more explanation and guidance than other solutions. This presents an opportunity for financial professionals to connect with their clients on a deeper level, driving conversations to understand their long-term goals as they work together to build a holistic plan. These interactions can set the stage for a more meaningful and trusting relationship – one that even has the potential to expand to the next generation as advisors work with annuity owners’ heirs.”

Annuity misinformation, external factors pose challenges for financial professionals
In addition to helping them build long-lasting relationships, financial professionals recognize the value of annuities’ key benefits in helping their clients prepare for retirement – especially in today’s turbulent market environment. Ninety-one percent agree that annuities help their clients protect against market volatility, and 86% say they help them diversify portfolios.  

While the benefits of including annuities in holistic plans are clear, financial professionals are still facing challenges incorporating them into client portfolios. Although 27% of their clients own at least one annuity, financial professionals across all distribution channels (broker dealer, wirehouse and registered investment advisor) say they would prefer 38% have one or more annuities in their portfolio – but are deterred from reaching this goal by a number of obstacles.

Clients’ perceptions that annuities are overwhelming (60%) and external factors like TV, radio and podcast shows that diminish annuity appeal (54%) pose challenges for financial professionals as they work to educate clients. Additionally, 78% said clients have negative annuity preconceptions.

“Because there is so much information out there about the benefits and drawbacks of annuities, it’s understandable why some clients might find them confusing or come into a conversation with an incorrect understanding of how they work,” Guymon said. “While it’s fair for commentators to discuss why annuities might not be right for every investor, some investors may interpret that as meaning they are not right for any investor – which is not true. It’s important to stick to fact-based messages with clients to dispel misinformation, helping to break down common myths so they can understand how annuities might fit with their specific needs and goals.”  

Building trust through educational conversations
In order to effectively sell annuities, break down misconceptions and build trusting relationships with their clients, financial professionals say they are turning to annuity carriers for help – specifically when it comes to materials they can use to educate their clients. Fifty-four percent said they are seeking client-facing materials on annuities as a source of guaranteed income, and 43% said they want more on annuities’ role in an overall financial plan.

“Financial professionals should lean on annuity providers for help educating clients on the role annuities can play in their portfolios,” Guymon said.

The Nationwide Retirement Institute offers access to planning tools and consultative support that financial professionals can use to help break down topics like annuities with their clients, helping to build a trusted and lasting relationship.

About Nationwide’s Annuity Financial Professional Survey
The research was conducted online within the U.S. by Nationwide Mutual Insurance Company and Zeldis Research from September 5-24, 2024, among 504 financial professional respondents. Respondents had to be annuity-producing financial professionals with at least three years of experience as a financial professional.

According to a new survey by Nationwide, around one-third (34%) of investors believe the economy will plunge into a recession within 12 months if the political party they least align with gains more power in the 2024 elections. Additionally, half believe the cost of living will rise, more than a third (34%) believe their taxes will increase and one-third (33%) believe new economic policies will pass and negatively impact their financial future.

As election fears take hold, some investors are taking action by turning to their portfolios and retirement plans, with one in four (26%) planning to invest more conservatively and nearly one in five (18%) planning to diversify retirement solutions within their portfolios.

But is it wise to make changes to your investment portfolio based on political inclinations?

“Election seasons can be draining on all of us as we’re hit with relentless campaign ads and messaging, leading us to believe we need to prepare our investment portfolios for the worst,” said Kevin Jestice, senior vice president of the Nationwide Investment Management Group. “However, it’s important to remember that election results in either party’s favor have historically had little impact on future investment returns.”

According to a Nationwide white paper, market history shows that stock returns have been fairly similar under both Democratic and Republican presidents. Even one-party legislative control has had no discernible effect on market returns.

Instead of making emotional decisions based on short-term political shifts, Jestice suggests working with an advisor to stay focused on long-term strategies. In fact, Nationwide’s survey found that 63% of Democrats, 59% of Republicans and 58% of Independents agree that working with an advisor during an election year helps them feel more secure, regardless of who is elected.

Some advisors are also helping calm nerves by implementing more comprehensive solutions into retirement portfolios, counseling investors on taking capital gains early in case tax laws change and taking Social Security benefits later, according to Nationwide’s survey. Advisors are also increasingly leveraging solutions like annuities to help protect against market risk, so make sure you talk to yours about which solution might be right for you, Jestice said.

“It can be a good thing to be informed about politics and hold strong beliefs, however it’s important to recognize the influence strong political views can have on our decision-making – including how we invest money for the future,” Jestice said. “The best thing investors can do right now is tune out political noise and tune in to their long-term financial goals by working with a trusted advisor.”

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

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.
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
Nationwide Funds distributed by Nationwide Fund Distributors LLC, member FINRA, Columbus, Ohio.
Nationwide Investment Services Corporation, member FINRA, Columbus, Ohio
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The majority of small business owners (72%) and mid-market business owners (51%) rate the current condition of the U.S. economy overall as 'poor' or 'fair,' with inflation topping their list of concerns at 61%. Following closely behind are worries about the upcoming U.S. presidential election (49%), high interest rates (49%), and supply chain disruptions (40%).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Nationwide surveyed 1,000 U.S. consumers ages 60-65 about their concerns, expectations and lessons learned for retirement planning. The survey found one-third of current retirees in this age range are considering returning to work, with half (50%) citing the fear of running out of money or currently running out of money as their top reason for doing so. Survey respondents say the biggest threat to their retirement security is inflation at 90%, followed by cuts to Social Security benefits (84%) and cuts to Medicare/Medicaid benefits (83%).

There is a significant gap between the realities of current retirees and the expectations of adults ages 60-65 who are still working. These include:

• Unrealistic estimates about basic living expenses: Current workers underestimate the percentage of income they’ll spend on basic living expenses in retirement. They expect to spend 42% of their income on food, housing, and other basic expenses, while retirees actually spend 53% on those expenses.
• Lower retirement security than anticipated: 77% of respondents who are currently working say they expect to be comfortable in retirement, while only 68% of current retirees actually feel comfortable.
• Retiring ahead of schedule: 64% of current retirees stopped working earlier than planned, which can reduce important years to save for retirement. The average age of retirement was 60, while the average age of expected retirement was 67.
• Safety net shortfall: 36% of retirees said they received less in Social Security benefits than they expected. If Congress does not take action, future retirees can expect a 23% cut in benefits, according to the Social Security Administration. Nearly three-fourths (74%) of current retirees said this cut would impact their retirement “a lot,” with 71% of those still working saying the same. Only 41% of survey respondents expect Social Security to exist in its current form throughout their retirement.   

“As we enter a period of peak retirement in our country, many retirees will face harsh reality checks if they missed opportunities to prepare for this moment,” said John Carter, President and COO of Nationwide Financial. “For decades, millions of investors have focused on accumulation without a plan for how they will use that money to live in retirement. In the future, success will be determined based on whether or not retirees have enough income to cover their needs. With fewer young people able to count on defined benefit pensions and uncertainty around the future of Social Security, younger savers should focus on simple things they can control right now to set themselves up for success in the future. There is reason to be optimistic, but retirement savers need to act now to ensure success.”

Advice respondents would give to their younger selves
Survey respondents have words of wisdom to pass down to younger generations. When asked what advice they would give their younger selves about retirement planning, many emphasized the difference between what they expected and what they experienced.

• Almost a quarter of survey respondents (23%) said to expect you’ll need more money than you think.
• Nearly 1 in 5 (18%) said not to assume you can work for as long as you’d like.
• The vast majority gave tried and true advice, including start saving early (63%), start planning early (41%), and don’t live above your means (34%).
• Retirees cited working with a financial professional, saving early, maxing out retirement plan contributions and retirement plan auto increases as actions that most helped their retirement security.
• Bad investments, extravagant purchases, tapping retirement savings early and waiting until after age 30 to start saving were cited as actions that most harmed their retirement security.

“These words of advice from those who have reached retirement provide great points of reference for American savers at every stage of the retirement planning journey,” Carter said. “As American workers prepare for their retirement years, which could be sooner than anticipated and last longer than they may expect, it’s crucial that they lean on the guidance of financial professionals who can help them make the right financial decisions and avoid costly mistakes."

Guidance from financial professionals is key
Survey findings show that not enough people are drawing on professional resources. Only 37% of 60–65-year-olds get information about retirement planning from a financial advisor. Others rely on a mix of sources, including the internet (39%), friends and family (35%) and resources from their employer-sponsored retirement plan (31%). One in 10 older respondents have not yet sought out information about retirement planning.

This reluctance to seek professional guidance poses a significant threat to long-term financial well-being and can lead to uninformed decisions that have lifelong consequences. For example, nearly two-thirds of retirees (58%) opted to draw down Social Security before their retirement age and 34% accessed their retirement savings early. Nearly 1 in 5 (17%) took a loan from their 401(k)s, risking tax and other withdrawal penalties.

“One of the most crucial tasks of our time is to ensure American workers understand how everyday choices impact their financial futures,” added Carter. “It’s important for those preparing for retirement to have a holistic plan, addressing factors like the right time to take Social Security, costs of healthcare and long-term care and ways to ensure they don’t outlive their income. The best way to do that is to work with a trusted financial professional who specializes in protected income solutions or tap some of the educational resources that may be available through workplace retirement plans.”

Find a financial professional

Nationwide remains committed to empowering individuals and financial professionals with the knowledge and tools they need to make informed financial decisions, especially when it comes to retirement planning. The company’s diverse portfolio of protection solutions includes annuities, life insurance, workplace retirement plans and other solutions to help retirement savers and businesses address a wide range of challenges like achieving lifetime income, preparing for long-term care and healthcare costs in retirement, developing strategies for Social Security, legacy planning and more.

For more information on Nationwide's retirement planning resources and to access the complete survey findings, view this infographic, complete survey results, our website, or the Nationwide Advisor Advocate Blog. 

Survey Methodology
Edelman Data and Intelligence (DXI) conducted a nationally representative online survey of 1,000 U.S. residents aged 60-65 on behalf of Nationwide from November 2 – 29, 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.

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

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

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

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

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

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

Hiring more, laying off less:

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

Managing supply chain disruptions:

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

Staying open longer:

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

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

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

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

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

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

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

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

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

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

Fewer women than men have been able to hit financial milestones such as contributing to a 401(k)/IRA (50% of women vs 58% of men), building an emergency fund (47% of women vs 59% of men) or increasing their retirement plan contributions (39% of women vs 51% of men).

Retirement plan sponsors have taken notice of these challenges, too, with 70% saying they believe female participants are more likely to have been financially impacted by the pandemic than men. A major factor could be family responsibilities — one in three women report they had thought about leaving their jobs or downshifting their careers in 2021, compared to one in four in 2020.

As a result of these factors, many women are experiencing negative emotions when thinking about their current retirement plan status, including being worried (34%), frustrated (15%) or panicked (10%).These percentages are even higher for women who have delayed or cancelled their retirement plans, with 45% feeling worried, 54% frustrated and 16% panicked. In fact, 51% of women who have delayed or cancelled their retirement plans say the decision has negatively affected their mental health.

"Working through the pandemic hasn’t been easy for anyone. This is particularly true for women, who are balancing child or elder care challenges and career burnout” said Amelia Dunlap, vice president, Retirement Solutions Marketing at Nationwide. “This only adds to the stress that women are facing, feeling off course from their overall financial and retirement goals.”

Taking Action
The good news is women are turning their energy into action. Since the pandemic began, 66% of plan sponsors have noticed that women are more likely to make changes to their retirement plans than men. Of the women who are expecting to delay or cancel their retirement plans, 67% say they've shifted their overall approach to saving for retirement in response.

The survey found women are also interested in exploring solutions that can help them reach their goals. About half (48%) of female participants showed interest in in-plan guaranteed lifetime income investment option, more than any other option provided to them. About one in three (35%) are likely to roll over their retirement savings into one if given the chance. The female participants who don’t contribute to a guaranteed lifetime income investment option say that their biggest barriers stem from a lack of knowledge.

“As employees are setting goals for the new year, plan sponsors have an opportunity to explore solutions that help their female participants — and all participants — retire on time with confidence, such as guaranteed lifetime income investment options,” continued Dunlap. “However, in addition to considering their investment option line-up, our survey reveals that plan sponsors must also include educational offerings to ensure participants have the tools they need to address lack of knowledge and confidence.”

View an infographic of the survey data.

Nationwide offers a list of considerations to help plan sponsors, consultants and advisors get conversations about in-plan guarantees started, as well as additional resources for the small business 401(k) market and institutional/government market.     

 Nationwide Retirement Solutions administers nearly 34,000 retirement plans, protecting more than $173.9 billion in participant assets, and helping secure financial futures for more than 2.6 million participants in the governmental 457, corporate 401(k) and not-for-profit 403(b) markets. Nationwide is committed to serving the retirement industry by doing the right thing at the right time through better participant experiences, administrative simplicity and values that translate to service.

Methodology
Edelman Data and Intelligence (DxI) conducted the online survey on behalf of Nationwide July 19-August 4, 2021. Respondents included:

• 500 company plan sponsor, including business executives, business owners, human resources professionals, and financial management professionals who are full-time workers at U.S. businesses with at least 10 full-time employees. They must also be decision-makers for company retirement plans including 401(k), 403(b), or 457(b) plans.
• 300 financial advisors or consultants who advise at least one plan sponsor on investment decisions, financial planning, and options.
• 1,000 plan participants 45+ years of age who work full-time and have access to a 401(k), 403(b), or 457(b) plan through their employer.

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.

According to a recent survey of advisors and financial professionals conducted for Nationwide by ETF Trends, nearly 9 in 10 (86%) advisors are at least somewhat concerned about achieving their clients’ income needs over the next three years.

The survey additionally found that many are looking to alternative income strategies to bridge the gap for their clients. About half (46%) currently invest in alternative income strategies and 35% are considering investing in these strategies. Nearly 8 in 10 are comfortable with non-traditional income strategies for their clients

“Income from the asset classes that investors have traditionally turned to has decreased with interest rates and the income that has been generated is likely to be impacted by inflation,” said Mark Hackett, chief of investment research of Nationwide’s Investment Management Group. “I think advisors recognize that some traditional strategies may not yield adequate income for clients in the year ahead, and that’s why they are increasingly considering additional options to generate income while seeking downside protection to help their clients diversify their portfolio.”

While advisors responded with moderate confidence in the Bloomberg U.S. Aggregate Float Adjusted Index, with 63% of them expressing expectations of annualized total return between 0-5% over the next three years, one third (34%) believe that the Agg is more likely to dip into the red instead. Advisors are not overly optimistic about how high yielding their high yield investments will be over the next three years. More than six in 10 (65%) respondents expect their high-income investments to yield a paltry 0-5%. Less than a quarter (22.5%) believe that yields will exceed 5%.

In terms of potential threats to the equity and fixed income markets, the survey found that 40% of advisors said their biggest concern in the next three years was inflation, followed by stock valuations (21%), volatility (21%) and higher interest rates (18%).

Advisors are also on the lookout for future market corrections. Only one in ten advisors (10.8%) said that they were “unconcerned” with the potential of a 20% market correction. Instead, most (55.9%) expressed that they were “somewhat concerned,” while a full third considered themselves "very concerned.”

“With more moderate predictions for equity market growth in 2022, advisors realize non-traditional income strategies can be an option for their clients to address current and future market conditions,” said Hackett.

Nationwide introduced its own alternative income strategy in late 2019, the Nationwide Risk-Managed Income ETF (trading symbol: NUSI), which has grown to more than $650 million in assets under management in less than two years. The Fund is listed on the New York Stock Exchange and has an expense ratio of 0.68%.

Investors interested in learning more about the Nationwide Risk-Managed Income ETF should contact their financial professional or visit the website. Financial professionals interested in learning more about Nationwide ETFs can call 1-877-893-1830. 

Methodology
The ETF Trends Investment Income Survey, sponsored by Nationwide, was conducted in the fall of 2021. The survey was conducted online, with a sample size of 574 verified financial advisors.

These delayed retirements have had a direct impact on these employees’ happiness at work and likely business outcomes for their employers.

• Nearly half of surveyed plan participants (48%) report feeling frustrated
• 42% are worried
• 38% are sad
• 17% feel hopeless

These emotions are bleeding into their work life, with plan participants indicating their delayed retirement has negatively impacted their mental health (48%), morale at work (39%), and productivity (23%). What may be more concerning is many companies aren’t aware of these repercussions. Less than a quarter of plan sponsors surveyed have recognized these issues in their workplace.

“While many companies are focused on attracting and retaining talent during the Great Resignation, there is another group of their employee base that needs attention in order to transition out of the workforce,” said Amelia Dunlap, vice president of Nationwide Retirement Solutions marketing. “It’s clear delayed retirements can foster negative emotions, which can be detrimental to a company’s culture and bottom line. Employers should look to invest in the short-term and long-term financial planning solutions that help employees reach their financial goals and prepare for the retirement they want, when they want it. Doing so may not only help those who are ready to retire, but potentially serve as a reason for younger talent to stay with the company.”

One of the long-term planning solutions plan sponsors could consider to help employees retire on time is offering guaranteed lifetime income investment options for participants. In fact, about half (46%) of plan participants are interested in these options. Eighty-one percent of plan sponsors acknowledge their employees want this, too.

Forces causing older workers to consider delaying their retirement are driven by uncertainty in how their retirement savings will translate to retirement security. Half of participants are worried about market volatility (51%), managing lifestyle and expenses (50%) and outliving their income (48%) in retirement.

“With long-term financial security top of mind for employees, guaranteed lifetime income investment options within an employer sponsored defined contribution plan can help them grow their retirement savings with the confidence that they can generate income they won’t outlive in retirement,” continued Dunlap. “To get started, plan sponsors should work with their plan advisor or consultant to identify which option is right for their plan participants and benefits mix.”

Nationwide offers a list of considerations to help plan sponsors, consultants and advisors get conversations about in-plan guarantees started, as well as additional resources for advisors and consultants.

Methodology
Edelman Data and Intelligence (DxI) conducted the online survey on behalf of Nationwide July 19-August 4, 2021. Respondents included 500 company plan sponsors, 300 financial advisors or consultants who advise at least one plan sponsor and 1,000 plan participants 45+ years of age or older

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Because of these concerns, eight in 10 plan sponsors (81%) believe their employees want guaranteed lifetime income investment options in their employer-sponsored retirement plan. Many plan sponsors are already looking to solve this need for their employees, with four in 10 (41%) saying they don’t currently offer guaranteed lifetime income options but would consider it. Despite this interest, about 60% of advisors and consultants don’t think their plan sponsor clients want to explore these options, which may indicate a missed opportunity.

The study shows many participants are ready to act once a guaranteed lifetime income investment option is available in their retirement plan, with eight in 10 participants (79%) reporting they are at least somewhat likely to rollover a portion of their current retirement savings into one. This percentage is even higher for participants ages 45-54 at 87%, which serves as an opportunity for financial professionals to begin engaging plan sponsors and participants even earlier than the traditional “pre-retirement” stage.

“For many Americans, understanding how their employer-sponsored retirement plan savings translates to retirement income will soon come into greater focus,” said Eric Stevenson, president of Nationwide Retirement Solutions. “New lifetime income illustrations will begin appearing on participant statements over the next year, based on a new requirement created by the 2019 SECURE Act, with some participants seeing this as soon as this month. For some it will be a wake-up call that they haven’t saved enough, and we believe this visibility will lead to even greater interest from plan sponsors for new investment options that help their plan participants address their lifetime income needs.”

For advisors and consultants looking to begin conversations with plan sponsors about guaranteed lifetime income investment options, it’s likely their clients are only waiting for them to make the recommendation. Approximately nine in 10 plan sponsors trust financial advisors or consultants to counsel them on choosing the right options for their company’s retirement plan and consider them to be the primary source for learning more about guaranteed lifetime income investment options.

Retirement plan decision makers are ready to talk about this now. The survey shows seven in 10 plan sponsors report they evaluate their company retirement plan options at least every six months. This is more frequent than most advisors and consultants realize, with more than eight in 10 advisors (82%) saying only a few or none of their plan sponsor clients are evaluating their company retirement plan in the next six months.

“There is an immediate business opportunity for advisors and consultants to initiate conversations with plan sponsors about adding guaranteed lifetime income investment options,” Stevenson said. “Plan sponsors are telling us they’re hungry for more guidance and advisors and consultants are in prime position to help by exploring these solutions with their clients today.”

View an infographic summarizing data from this survey.

Nationwide also provides a variety of in plan guarantee resources for financial advisors and plan consultants.

Methodology
Edelman Data and Intelligence (DxI) conducted the online survey on behalf of Nationwide July 19-August 4, 2021. Respondents included:

• 500 company plan sponsors, including business executives, business owners, human resources professionals, and financial management professionals who are full-time workers at U.S. businesses with at least 10 full-time employees. They must also be decision-makers for company retirement plans including 401(k), 403(b), or 457(b) plans.
• 300 financial advisors or consultants who advise at least one plan sponsor on investment decisions, financial planning, and options.
• 1,000 plan participants 45+ years of age who work full-time and have access to a 401(k), 403(b), or 457(b) plan through their employer.

“Right now, tax policy is top of mind for advisors, financial professionals and the clients they serve. They’re clearly concerned about taxes affecting their portfolios—and it’s impacting their approach to investing,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “In fact, taxes have consistently been a top financial concern of investors year over year—especially the High Net Worth and Ultra High Net Worth—according to Nationwide’s annual Advisor Authority Study. Working with an advisor can help clients enhance their long-term financial outcomes through a holistic approach to planning and investing for greater tax-efficiency.” 

Taxes Number-One Concern for Clients 
Nearly three fourths (74%) of advisors and financial professionals said tax policy is their clients’ No. 1 concern, among the new administration’s proposed policies. They rated clients’ concerns about all other polices in the single digits, including pandemic relief (9%), health care policy (4%), immigration policy (4%), climate change/green energy policy (3%).  

Likewise, when considering the potential effects of the new administration’s proposed policies, advisors and financial professionals said that their clients’ three biggest financial concerns over the next 12 months, will be taxes (59%), protecting assets (51%) and managing volatility (39%). Taxes far outpaced clients’ other concerns, including generating reliable income during retirement (28%), rising interest rates (20%) and inflation, cost of healthcare and saving enough for retirement (tied at 19%). In fact, nearly two-thirds of Americans (60%) expect their taxes to increase in the next four years, according to the recent 2021 Nationwide Retirement Institute®(NRI) Tax-Efficient Retirement Income Survey.  

Taxes Top Factor Impacting Portfolios and Investing 
Nearly nine in ten (88%) advisors and financial professionals said that their clients want to discuss the impact of tax policy on their investments and financial plans. Clients’ interest in discussing the impact of taxes significantly exceeds all other proposed policies, including immigration policy (44%), climate change/green energy policy (42%), pandemic relief (38%) and health care policy (36%).  

Asked to choose the single most important macro issue that will adversely impact their clients’ portfolios over the next 12 months, advisors and financial professionals rated taxes first (32%), with US Federal Budget Deficit a distant second (12%), while ongoing volatility and the COVID-19 pandemic tied for third (11%). The impact of gridlock in Washington (9%), inflation (8%) and a range of other factors were all rated in the single digits. 

Advisors and financial professionals also said say tax policy (53%) will be the No. 1 trend that will impact their approach to investing, with domestic economic performance and political/social discord in the US tied for a distant second (30%) and inflation third (27%). Because of the impact of the new administration’s proposed policies, one-third of advisors and financial professionals (33%) say they’ll invest more conservatively in 2021, and 10% say they’ll invest more aggressively. While 44% say they’ll invest about the same, another 10% say the administration’s policy will not impact how they invest.  

Concerns about Market, Economy and Advisory Practice 
While many positive factors driving markets remain in place, including vaccine optimism, the economic reopening and accelerating earnings, most advisors and financial professionals are concerned that the impact of new administration’s proposed policies could lead to a US bear market over the next 12 months, with 21% very concerned and 40% somewhat concerned. Only 30% say they are not very concerned and just 9% are not at all concerned. 

Likewise, while many experts suggest that a booming recovery is gaining momentum, most advisors and financial professionals are concerned that the impact of new administration’s proposed policies could lead to a US economic recession over the next 12 months, with 20% very concerned and 40% somewhat concerned. Only 31% say they are not very concerned and just 10% say they’re not at all concerned.  

Additionally, most advisors and financial professionals believe the new administration’s proposed regulatory changes to the financial services industry will negatively impact their practice over the next 4 years. In fact, 31% say it will have a very negative impact and 41% say it will have a somewhat negative impact. Only 19% say it will have no impact, while 6% say it will have a somewhat positive impact and just 3% say it will have a very positive impact. 

When asked what one thing they’d want to know with absolute certainty over the next 4 years, advisors and financial professionals said US equity market performance (39%) far outranks all other options. US economic performance (19%) was a distant second and the trajectory and timing of the resolution of the pandemic (14%) was third.  

Survey Methodology:
This Washington Impact Survey of more than 200 advisors and financial professionals was conducted online by Nationwide, March 2021 – May 2021.

This overwhelming support suggests the proposed legislation would be well-timed, with 77% of financial professionals agreeing that COVID-19 has led their clients to slow or stop contributions toward their retirement savings, and another 50% reporting that their clients’ financial security has been negatively impacted by COVID-19.

Financial professionals indicated that when the SECURE Act of 2019 passed, their clients updated their retirement plans (50%), were able to save more in general (48%), increased their retirement account contributions (48%), and increased their emergency savings (47%). Today, they agree that many of the proposed components of SECURE Act 2.0 would make it even easier for their clients to save for retirement and get back on track toward their goals.

Notably, 93% believe allowing employers to match contributions under a 401(k) plan, 403(b) plan or Simple IRA while employees make student loan payments will increase their clients’ financial security. Eight in ten (81%) agree increasing the catch-up contribution limit for those 60+ to $10,000 for retirement plans and $5,000 for simple IRAs will do the same. Similarly, 79% support increasing the Required Minimum Distribution (RMD) age from 72 to 75 years old and 78% agree adding ETFs as an investment option to variable annuities would also be financially beneficial for clients.

Additionally, 93% of financial professionals are in favor of the proposed Saver’s Credit changes, which would simplify and increase tax incentives for low- and middle-income individuals saving for retirement, and 93% say it will promote healthy financial practices.

“The first SECURE Act legislation that passed in 2019 was a tremendous step forward in removing some of the obstacles people experience when saving for retirement,” said John Carter, president and COO of Nationwide Financial. “SECURE Act 2.0 is a significant next step that will help many Americans take control of their financial futures. It’s great to see that advisors and financial professionals helping Americans prepare for retirement also see significant opportunities for their clients in the proposed legislation. We’re encouraged by the bipartisan support taking shape on Capitol Hill.”

In terms of additional opportunities to help clients save for retirement, 94% of financial professionals agree that adding an emergency savings provision to the proposed legislation that would permit employees to withdraw or use limited retirement plan contributions for critical short-term financial needs without an early distribution tax penalty would help improve Americans’ financial security, and 91% agree that it should be included as part of the SECURE Act 2.0 legislation.

“We saw first-hand how many Americans turned to their retirement savings to bridge the gap when faced with a COVID-19-related emergency,” said Eric Stevenson, president of Nationwide Retirement Solutions. “By building an emergency savings component into a retirement plan, participants could tap funds without incurring excessive tax consequences or pulling their assets out at market lows. It’s our hope that lawmakers consider an emergency savings provision for SECURE Act 2.0 or in a separate piece of legislation to address lessons learned during the COVID crisis.”

Stevenson testified before a U.S. Senate subcommittee in support of the proposed legislation in December.

View an infographic highlighting survey results.

Methodology
Nationwide commissioned Edelman Data and Intelligence (DxI) to conduct a 13-question, online survey among 500 full-time U.S.-based financial advisors and financial professionals. Online fieldwork was completed between February 9 – 19, 2021.

“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.