The agreement extends to potential solutions. The same three proposals were ranked as the most popular approaches to strengthening Social Security among both Democrats and Republicans:

1. Increase taxes on higher earners to increase funding: 51% overall, including 56% of Democrats and 43% of Republicans
2. Increase funding through taxes paid by employers: 42% overall, including 44% of Democrats and 42% of Republicans
3. Reduce or eliminate benefits for individuals with incomes above a certain threshold: 38% overall, including 38% of Democrats and 37% of Republicans 
    

Americans expect action, but few are ready for it
More than three in five Americans (61%) believe the government is likely to make changes before Social Security benefits are reduced. Social Security is also becoming a major consideration at the ballot box, with 75% saying a candidate’s position on reform will be a major factor in how they vote in future elections.

Yet the expectation that changes are coming has not translated into clear financial plans: just 20% know how they would adjust their finances if benefits were reduced. This might be because Americans underestimate how soon the program could face funding constraints. On average, respondents believe depletion is 17 years away – in reality, the fund is projected to run out by the fourth quarter of 2032, according to the 2026 Social Security Trustees Report.

Among Americans without a clear financial plan, 45% say an announcement of specific government changes would prompt them to act. Waiting for that certainty, however, may leave households with less time to adjust their savings, retirement date or income strategy.

“Americans may agree that Social Security needs to change, but they can't afford to wait for what those changes could mean for their own retirement before they prepare,” said Kevin Jestice, president of Nationwide Retirement Solutions. “It’s impossible to know how lawmakers may act, but scenario planning can give people more time and flexibility to adjust their savings, income strategy and claiming decisions.”

Current beneficiaries are already making difficult tradeoffs
Future benefit reductions would compound pressures many Social Security recipients are already facing. Among current beneficiaries, 74% say they have changed their finances because rising living costs have outpaced their benefits.

The most common changes include cutting discretionary spending, such as travel or dining out (51%), reducing spending on essentials, including groceries and medications (38%), and relying more heavily on savings or retirement accounts (25%).

That financial strain, combined with widespread uncertainty about Social Security’s future, is pushing some Americans to make decisions based more on fear than on a full understanding of the long-term tradeoffs. For example, 51% of Americans say they have filed or plan to file for Social Security as early as possible to ensure they receive something before the program changes or runs short of funds. In most cases, though, filing before full retirement age generally results in a permanently lower monthly benefit, which can have lasting consequences for retirement income.

Financial professionals can help prepare Americans for different outcomes
That is where informed guidance from a financial professional can make a meaningful difference. Survey respondents who work with a financial professional were nearly four times as likely to have a clear plan for reduced Social Security benefits – 39% compared with 10% of those who do not.

Americans are also looking for help with the complexities surrounding Social Security. Nearly eight in 10 (79%) are interested in learning from a financial professional about how their benefits will be taxed in retirement.

“Decisions about when to claim Social Security can affect a person’s income for the rest of retirement, so they should not be driven by fear or headlines alone,” Jestice said. “A financial professional can help individuals assess filing age, taxes, income sources such as their employer sponsored retirement plan savings, and possible benefit changes within the context of their broader retirement plan.”

Nationwide offers a variety of resources to help. The full 2026 SurveyResults can help financial professionals focus client conversations where it matters most. Additional resources to support planning conversations can be found at Nationwide.com/SimplifySocialSecurity. View an infographic on this new data or a recent blog from Kevin Jestice. 

Methodology
The 2026 Social Security survey was conducted online in the U.S. by The Harris Poll on behalf of Nationwide among 1,823 adults age 18+ who currently receive or expect to receive Social Security (“national sample”), including 300 Gen Z (age 18-29), 512 Millennials (age 30-45), 511 Gen Xers (age 46-61), and 500 Boomers+ (age 62+) and an additional oversample of 60–65-year-olds (n=464) The survey was conducted May 11-June 4, 2026.

Data for the generations and 60–65-year-olds are weighted where necessary by age by gender, race/ethnicity, region, education, marital status (not included for Gen Z), household size, household income, and political affiliation to bring them in line with their actual proportions in the population. To ensure the national sample was representative, the data were initially weighted by generation (Gen Z 18-29, Millennials 30-45, Gen Xers 46-61, and Boomers+ 62+) and then combined into a total age 18+ group and 30+ group to preserve trending.

To preserve trending data for the 50+ are weighted separately where necessary by age by gender, race/ethnicity, region, education, household income, retirement status, and political affiliation to bring them in line with their actual proportions in the population. Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data for 60-65 is accurate to within ± 6.11 percentage points, the sample data for 50+ is accurate to within ± 4.32 percentage points, the sample data for 18+ is accurate to within ± 2.34 percentage points, the sample data for 30+ is accurate to within ± 2.56 percentage points all using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

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 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 a 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.

• While three quarters of non-retired investors are concerned about a recession, a growing number are planning to take advantage of investment opportunities now
• This mix of action and anxiety creates risk for three in ten non-retired investors who do not have a strategy in place to protect against market volatility
• Advisors are leaning into protection solutions to balance clients’ growth and risk management needs

COLUMBUS, Ohio – Inflation and market volatility have created one of the most complex financial environments in recent memory, causing more than three in four (77%) non-retired investors to be concerned about a U.S. economic recession over the next 12 months. However, recent data from the Nationwide Retirement Institute reveals that rather than retreating, a growing number of Americans are leaning in.

The study shows a notable shift from caution to action, with investor activity at some of the highest levels tracked across the study. One in three (33%) non-retired investors say they will change their retirement savings approach over the next 12 months by planning to take advantage of investment opportunities now, up from 21% in the summer of 2024. More than one in five (22%) say they plan to manage their investments more aggressively, up from 16% in 2024.

The data also shows an emerging sense of stabilization in retirement planning, even as concerns remain elevated. Just 15% of non-retired investors say they plan to retire later than planned, down from a peak of 22% in 2024. The number of investors who don't know if they will ever be able to retire (11%) is down from a high of 16% in 2024.

"Investment markets reached all-time highs this summer in the face of elevated volatility, reflecting a shift in how investors are interpreting uncertainty. Rather than viewing volatility as a signal to step aside, many may be viewing it as an opportunity to be offensive versus the historic instinct to turn defensive,” said Mark Hackett, chief market strategist for Nationwide’s Investment Management Group. “We're seeing them use these periods of volatility to rebalance, diversify and position themselves for future growth, recognizing that participation, not timing, is often the key driver of long-term outcomes.”

Many Investors Still Lack a Plan
Even as investors show increased confidence and a growing willingness to take action in a volatile environment, many still do not have formal strategies in place to protect their retirement savings.

Nearly three in ten (29%) non-retired investors say they do not currently have a strategy in place to protect their assets against market risk, and one in ten (10%) non-retired investors say they are not sure if they do, pointing to a need for clearer and more frequent conversations between advisors and clients about what is actually in place.

Advisors are leaning into protection solutions
Advisors who say they have a market risk protection strategy in place for their clients are evolving their use of retirement solutions in line with the current environment. Six in ten (60%) advisors say the events of the last 12 months have made them more likely to recommend a guaranteed income solution as part of a client’s portfolio. Use of registered index-linked annuities (RILAs) among advisors with a market risk protection strategy has grown from 39% in the summer of 2023 to 52% in 2026, a 13 percentage-point increase over three years.

Data suggests that advisor momentum toward guaranteed income solutions is meeting a receptive audience with clients. More than half (57%) of non-retired investors say recent events have made them more likely to put part of their portfolio in an annuity or other guaranteed income solution.

Advisors are also tracking a number of potential threats to clients’ long-term plans. Nearly a quarter (24%) say the cost of healthcare is among the most immediate challenges to their clients' retirement portfolios. They’re also tracking systemic risks to the programs and policies clients have long planned around. More than half (55%) of advisors say they believe Social Security or Medicare funding will be reduced, with 40% specifically citing Social Security solvency as a concern. Additionally, nearly three in five (58%) advisors expect the future tax burden for clients to increase. 

"Advisors can play a critical role in helping clients balance growth and protection by building strategies that don't force an either-or decision," said Brad Carrier, vice president of Nationwide Annuity Distribution. "Through asset allocation, diversification and the use of solutions like annuities that incorporate downside protection, advisors can help clients stay invested during periods of volatility while managing the emotional and financial risks that sometimes lead to hasty decisions."

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

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.

Nationwide's Retirement Institute survey, formerly known as the Nationwide Advisor Authority survey, 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 Nationwide Retirement Institute Survey: Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 528 Advisors and Financial Professionals and 2,012 investors ages 18+ with investable assets (IA) of $10K+, from January 15-February 6, 2026. Among the investors, there were 1,411 non-retired investors and 691 retired investors.

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within ± 4.3 percentage points using a 95% confidence level. For investors data is accurate to within ± 2.9 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.  For complete survey methodology, including weighting variables and subgroup sample sizes, please contact news@nationwide.com.

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

The Nationwide Financial Growth & Protection Index, which measures how consumers balance financial growth and financial protection, scored Americans at 54 on a 100-point scale, indicating consumers are slightly more protection-oriented than growth-oriented overall. That shift is reflected in how Americans now view financial success: 84% say the American Dream is now more about financial stability than building wealth, while the same percentage believe it is harder to get ahead financially than it was for previous generations.

For many Americans, this mindset is shaped by the pressures of everyday financial life. Nearly seven in 10 consumers (68%) reduced spending over the past year to improve their financial situation, while 45% dipped into savings to cover essential expenses. Three-quarters (75%) say their primary financial focus is covering basic expenses, and 74% say they are simply trying to stay financially afloat, suggesting many Americans are making financial decisions from a place of protection rather than ambition.

Together, the findings suggest Americans are not abandoning financial ambition, but they are making decisions from a more defensive position — focused first on protecting their households, preserving progress and avoiding setbacks.

"Financial progress still matters to Americans, but the path to achieving it has changed," said Craig Hawley, President and COO of Nationwide Financial. "People still want to build wealth, but today's environment has made financial stability and resilience just as important. Protecting what you've worked hard to build has become a critical part of achieving long-term financial success."

Optimism Outpaces Preparation
Despite today's financial pressures, Americans remain optimistic about their future. Seven in 10 consumers (70%) believe they can significantly improve their financial situation over the next five years, while nearly six in 10 (59%) expect their income to increase meaningfully over time.

However, many have yet to take steps to protect the financial future they expect. Just 30% have taken steps to protect against income loss due to illness or injury, and more than one-quarter (27%) say they would not be financially protected at all if their household's primary income earner could no longer work. The findings point to a growing gap between consumers' financial aspirations and the safeguards they have in place to protect them.

That disconnect is especially evident when it comes to retirement planning. More than eight in 10 consumers (81%) say they would prefer a guaranteed, predictable retirement income stream over higher-growth investments, yet only 24% currently have products or strategies designed to reduce market risk in retirement.

As Americans increasingly define financial success through the lens of stability, the findings suggest many are still looking for practical ways to translate that priority into a long-term strategy.

Helping Americans Balance Growth and Protection
The Index also points to an opportunity for financial guidance that reflects how consumers are thinking about their financial futures. Nearly three-quarters of consumers (74%) say they would be more likely to work with a financial advisor who could help protect them financially.

Employer-sponsored retirement plans remain the most common retirement savings vehicle among Americans, creating an important opportunity for retirement planning professionals, including financial advisors and those supporting workplace retirement plans, to help workers build strategies that support long-term growth while preparing for unexpected challenges.

"Our findings suggest retirement planning is entering a new chapter," said Hawley. "Building wealth remains essential, but consumers also want confidence that their savings can support them through market volatility, longer lifespans and life's unexpected challenges. That creates an opportunity for financial advisors and workplace retirement plans to bring growth and protection together in a way that better reflects how Americans are preparing for retirement today."

To learn more about the first-ever Nationwide Financial Growth & Protection Index, view an infographic, review the data or view a blog post from Craig Hawley.

Methodology
The Nationwide Financial Growth & Protection Index research was conducted online in the United States among 2,000 adults age 22 and older. The survey was fielded May 1–14, 2026. Respondents were nationally representative by age, gender, race/ethnicity, region, employment status and income level. The Index measures how consumers balance financial growth and financial protection by evaluating responses across three dimensions: mindset, actions and confidence. Individual pillar scores were weighted and combined to produce an overall Index score ranging from 0 to 100, with lower scores indicating a stronger growth orientation and higher scores indicating a stronger protection orientation.

This unease is widespread. A majority of women investors (77%) say they are concerned about a U.S. economic recession, and that anxiety appears to be shaping how many are viewing their own future. While about four in 10 say they are on track to retire about the same time as planned, 14% say they do not know whether they will ever be able to retire, according to Nationwide’s survey.

Perhaps even more alarming, despite their concerns about volatility impacting their ability to retire, many women investors do not have a formal plan to protect themselves against market turbulence. One-third (33%) said they do not have a strategy in place to protect their assets against market risk, while another 14% said they are not aware if they have a market risk strategy at all.

“The need for financial advice is clear,” said Suzanne Ricklin, senior vice president of Nationwide Retirement Solutions Distribution. “Women investors are navigating uncertain markets against a unique backdrop of challenges specific to them and many are doing it without a clear plan in place.”

The good news? Women are open to working with an advisor, with 34% saying they prefer to work with an advisor to help guide their financial planning. But the advisor relationship is not always working as it should. Nearly three in 10 (29%) women investors with an advisor say they have experienced ‘mansplaining’ – explanations delivered in a way that feels condescending rather than helpful.

“I believe advisors have good intentions when they are trying to break down financial topics with their female clients, but it’s important for women to speak up if they feel those explanations are not providing the information and approach they need,” said Ricklin. “Our survey makes it clear that women don’t want to be talked at, they want to engage in a discussion. Seek out an advisor who creates a non-judgmental space for you to ask questions and address your concerns.”

Ricklin shared five things women should look for in a financial professional:

1. Listens first, advises second: Seek out an advisor who asks thoughtful questions about your life, priorities and values before offering recommendations. You should feel heard and understood.

2. Communicates clearly: A good advisor should explain strategies in easy to understand language, use examples when helpful and welcomes questions.

3. Takes a holistic view: Women’s financial lives may include caregiving responsibilities, career breaks and longer lifespans, so planning should extend beyond investments alone.  

4. Respects your comfort with risk: Your comfort level matters as much as your potential returns. Your advisor should help build a strategy that reflects both your goals and your ability to stay confident during market swings.

5. Treats planning as a collaboration: The best advisor relationships are partnerships that leave women feeling informed, empowered and involved in decisions.  

“A great way to identify an advisor who is skilled at serving women clients is to talk to your female family and friends who currently work with one,” Ricklin said. “A referral from someone you trust can be a great place to start. Their experience is a great way to understand what to expect before you invest your time and money in a new advisory relationship.”

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

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05/2026

Nearly all (95%) women investors with advisors agree their advisor treats them with the same respect as male investors, including over two-thirds (68%) who strongly agree. Even so, there is room for advisors to grow when it comes to how that respect shows up in everyday conversations. Three in 10 (29%) women investors with advisors say their advisor sometimes ‘mansplains’ concepts to them in a way they don’t always appreciate.

Women investors are not questioning whether their advisor cares. Rather, they are signaling where there is an opportunity to communicate better. About one in three (34%) women investors say they find their advisor condescending when explaining recommendations or responding to questions. About the same amount (32%) say their advisor assumes they know less about finances than they actually do.

“I believe advisors have the best intentions when they are trying to break down financial topics with their women clients, however it’s important to recognize that what may be intended as a helpful explanation can land as dismissive or condescending,” said Suzanne Ricklin, senior vice president of Nationwide Retirement Solutions Distribution. “Our survey makes it clear many women investors don’t want to be talked at, they want to engage in a discussion and have a conversation around their needs. Advisors should ask thoughtful questions to get to the root of their client's needs, do the research to be well-versed in the unique issues women are facing and listen to understand each client's unique goals and perspectives. When advisors shift their emphasis from explaining to asking questions and listening to what is most important to their women clients, they can build stronger relationships and more aligned goals.”

Women investors seek education amid uneasy macro outlook
The need for financial guidance feels as urgent as ever for women investors. Navigating a distinct set of financial pressures, many are looking ahead with a mix of determination and unease, and with a clear appetite for support.

That unease is grounded in real economic and retirement worries. A clear majority (77%) of women investors are concerned about a U.S. economic recession. Only four in 10 (39%) non-retired women investors say they are on track to retire about the same time as they previously planned, while more than one in 10 (14%) don’t know if they’ll ever be able to retire.

What women investors do know is what kind of help they are looking for. Their preferences point to a consistent theme: they want to be active participants in their financial planning, not passive recipients of advice:

• More than two in five (44%) women investors prefer to fully understand their options before making decisions.
• 34% of women investors prefer to work with a financial professional to guide their financial planning.
• 21% of women investors seek out educational resources to help them understand financial strategies.

“Women told us they want clarity and context. Advisors can put that into action by taking time to fully lay out options and inviting questions during conversations,” Ricklin said. “By encouraging open dialogue about what is important to them, you’ll ensure your women clients’ priorities are being heard and addressed.”

Women advisors are leading the way with tailored service
Women advisors are approaching women clients differently than their male peers. When taken together, nearly all (99%) women advisors indicate they have taken specific actions to better serve women clients, including:

• Nearly half (47%) of women advisors have developed strategies specifically for women going through major life transitions, compared to just 34% of men advisors.
• More than two in five (43%) women advisors have increased their focus on protection and guaranteed income solutions, compared to just 35% of men advisors.
• A similar share (44%) of women advisors have studied the unique retirement challenges women face (e.g., longevity, caregiving, wage gaps), compared to just 38% of men advisors.
• More than a third (36%) of women advisors have completed training or education on financial planning for women, compared to just 29% of men advisors.
• Two in five (40%) women advisors have sought feedback from women clients on how they can better serve them, compared to just 35% of men advisors.

Across each of these key measures, women advisors are more likely to have taken the specific steps that women investors say matter most. Male advisors looking to strengthen their relationships with women clients may benefit from incorporating the best practices of their women colleagues.

“Our survey found that many women advisors are structuring conversations around personalization and intentionality, taking the time to understand their client’s retirement goals and aspirations. That approach builds trust and makes financial planning feel empowering rather than transactional,” Ricklin said. “Male advisors can increase their success with women investors by evolving their approach throughout the client engagement process, incorporating additional questions and discussion opportunities for their women clients.”

While some advisors may overestimate their skill set, others lean into opportunities
Advisors feel confident they recognize the needs of their women clients. More than nine in 10 (91%) advisors rate themselves as skilled at meeting the specific needs and expectations of women clients, and a similar share (95%) say they have already taken specific actions to better meet those needs.

Despite near-universal confidence in their own abilities, fewer than four in 10 advisors (37%) say they actually understand their women clients' financial and retirement goals. Only 38% say they understand the impact of the unique financial challenges women face, such as longer lifespans, caregiving responsibilities and wage gaps. 

In practice, just one in four advisors (25%) say they have received formal training on the unique financial challenges women face, pointing to a meaningful disconnect between self-assessed skill and professional development. This suggests that for many advisors, confidence has outpaced preparation.

Still, a significant number of advisors recognize the opportunity and are taking steps to close the gap. Four in 10 (40%) say they prioritize building a human connection and demonstrating genuine care with their women clients, and an equal share (40%) say they take time to educate their women clients on financial strategies and ensure they truly understand their options. Another 26% say they actively adjust their communication style to avoid being condescending.

“Women are controlling more wealth, yet many still feel underserved by the industry – exposing a critical opportunity for advisors,” Ricklin said. “By creating a more inclusive, collaborative experience that prioritizes listening, education and partnership, advisors can build trust with their women clients, encouraging them to stick around for the long-term, refer others and ultimately grow their practice. A great way for advisors to ensure they are hitting the mark is to ask for direct feedback from women clients about their communication preferences and what approaches they find most helpful in their decisioning.

Ricklin offers this advice to women investors trying to find a good financial advisor: “There is no substitute for a great referral. Ask your friends and family about the experience they have had working with their advisors. That may be the best indication that a particular advisor would be a good fit and can help with your specific needs.”

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

Nationwide’s Retirement Institute^® survey, formerly known as the Nationwide Advisor Authority survey, explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.

Nationwide Retirement Institute Survey Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 528 advisors and financial professionals and 2,012 investors ages 18+ with investable assets (IA) of $10K+, January 15-February 6, 2026. Among the investors, there were 882 women investors and 421 women investors working with a financial professional. Among the advisors, there were 119 women advisors.

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

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

According to a new survey from the Nationwide Retirement Institute, 47% of investors have not had conversations with family members about how they’re planning for financial security in retirement. Even more striking, 17% say they don’t think these conversations are necessary.

Meanwhile, the 53% of investors who are talking with family members about retirement finances report that they span multiple topics. Conversations include wishes for end-of-life care, access to financial accounts and plans for passing on assets and managing finances when a parent becomes unable to do so, according to Nationwide’s survey.

“When a parent or loved one who has been a source of guidance and stability can no longer manage their finances or care for themselves, many families find themselves thrust into a sudden and overwhelming crisis,” said Juan José Pérez, senior vice president of Nationwide Strategic Customer Solutions. “It doesn’t have to be that way. Family conversations can help create a shared roadmap for how a family can come together to follow through on their loved one’s wishes if and when the time comes to do so.”

The good news? The vast majority of financial advisors are already helping families have these conversations as part of their practice. According to Nationwide’s survey, 90% of advisors say they currently facilitate conversations between aging clients and their adult children about retirement planning, healthcare costs or financial security, including 43% who say it’s a standard part of their practice.

However, generations differ on how involved they want their advisor to be when it comes to family financial planning. While 60% of Millennials say they want a financial advisor to serve as a facilitator for discussions, only 32% of Gen Xers and 16% of Baby Boomers agreed, according to Nationwide’s survey.

“Change can happen quickly, which is why it’s essential for loved ones to have a plan in place and be ready to step in when needed – something an advisor can help coordinate,” said Perez. “Older generations have an opportunity to clearly share their wishes and help their families feel prepared to support them when the time comes.”

Perez shared the following topics families may want to discuss during financial planning conversations:

1. Establish expectations: Parents should articulate their vision and plan for their life when they need more help and when they pass away. Younger generations should be honest about how they may be able to contribute to these plans as a caregiver or financial partner.

2. Retirement income and expenses: Talk through where money will come from in retirement, including Social Security, pensions, savings or investments. Discuss how it will cover everyday living costs, healthcare, housing and lifestyle goals. This helps set realistic expectations before problems arise.  

3. Health care and long-term care plans: Families should discuss health insurance coverage, Medicare decisions and potential long-term care needs. Chronic illness or cognitive decline can dramatically change financial needs.

4. Estate plans and beneficiary wishes: This includes wills, trusts, beneficiary designations and who will make decisions if someone becomes incapacitated. Clear conversations can prevent confusion, conflict and delays in the future.

5. Values and legacy goals: Beyond the numbers, families should talk about what matters most: supporting a surviving spouse, helping children or grandchildren, charitable giving or preserving a family legacy. These conversations help ensure financial plans reflect personal priorities.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The study found Americans are bracing for a higher tax burden in retirement, yet most are not engaging in proactive, year-round tax planning to mitigate their exposure. Four in five (80%) investors broadly expect taxes to rise in the future, yet less than one-third (31%) of this cohort are proactively adjusting their financial plan accordingly.

Additionally, 17% of investors say not knowing the best tax strategies for their portfolio or understanding tax implications (14%) before retirement withdrawals are among their biggest concerns when planning for retirement.

"Our study highlights that for most investors, tax anxiety is real – however, their plan to address it is lacking,” said Kush Kotecha, president of Nationwide Annuity. “A majority of investors are telling us they're concerned about rising taxes, but only a fraction are taking steps to prepare their portfolios. That gap between worry and action is where real financial risk can build."

For many investors, tax planning starts and ends with tax season
Despite widespread concern about taxes, most investors are not engaging in proactive, year-round tax planning. More than one-third (34%) say they mostly pay attention to taxes during "tax season," and only one in four (26%) engage in ongoing, proactive tax management all year.

Among investors who work with a financial advisor, 29% say they count on their advisor to help them plan for taxes in retirement. However, just 37% of these investors say their advisor proactively discusses tax planning strategies or tax policy changes as part of regular review meetings. More than one in 10 (11%) say discussions happen only when major tax law changes occur or when they specifically ask about tax matters (11%). For most investors, this means tax planning only comes up when something forces the conversation.

“Advisors should make taxes a part of regular client discussions,” Kotecha said. “Investors with an advisor who are not receiving regular guidance on this important topic should ask for it or consider looking for a financial professional who will help them prioritize tax-efficient retirement planning.”

Tax strategies are not one-size-fits-all, but some investors are flying blind
Less than half (44%) of investors surveyed say their portfolio is a combination of taxable, tax-deferred, and tax-free assets – likely indicating good tax diversification. Others surveyed indicated heavier reliance on a single taxable class of assets. A meaningful share of investors (13%) don’t know how to describe their portfolio’s tax composition.

“It's not surprising to find investor portfolios come in all shapes and sizes when it comes to tax exposure, and it's important to recognize that there is no 'one-size-fits-all' approach," said Kotecha. "However, those without awareness of their portfolio’s tax profile or a strategy for managing the mix of taxable asset classes in their portfolio risk missed opportunities or unforced errors that could haunt them in retirement. Personalized, advisor-led planning is essential to help investors understand how their unique mix of assets will be taxed, both now and in retirement."

Advisors say they are helping clients take action
While nearly half (45%) of advisors say their clients have a risky mix of taxable asset classes, the vast majority (85%) say they're working with their clients to help them diversify their tax profile within their portfolio.

With taxes expected to rise, advisors are also increasingly steering clients toward tax-efficient income solutions. More than half (60%) of advisors say given the events of the last 12 months, they are more likely to recommend a client put part of their portfolio into an annuity or other solution that provides guaranteed income.

"Advisors are recognizing that annuities can be a powerful tool when it comes to reshaping the tax profile of a portfolio. By allowing assets to grow tax-deferred, annuities can help reduce the drag of taxes on long-term returns and create a more efficient income strategy in retirement," said Kotecha. "That efficiency matters for retirees who need predictable income and want more control over how and when they pay taxes. In an environment where every dollar of after-tax income counts, annuities can offer a sense of stability and security that's increasingly hard to find."

The Nationwide Retirement Institute offers this guide to help investors think about planning for a tax-efficient retirement.

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

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

About Advisor Authority: Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 528 advisors and financial professionals and 2,012 investors ages 18+ with investable assets (IA) of $10K+, January 15-February 6, 2026. Among the investors, there were 1,041 with a financial professional, 971 without a financial professional, 300 High Net Worth (IA of $1M-$4.99M), and 504 Less Affluent ($10K to <$100K).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Learn more on the Nationwide Advisor Advocate Blog.

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

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According to a new survey from the Nationwide Retirement Institute, just two in five (40%) investors who have retired in the last five years say they’re on track with their original budget and decumulation plan, with another 21% saying they’ve had to be more conservative with spending than planned since retiring – meaning less financial freedom to enjoy retirement the way they envisioned.

The reason for the shift? Market volatility is proving to be especially problematic for recent retirees compared to their longer-retired peers. Nationwide’s survey found half (50%) of those retired in the last five years made changes to their retirement portfolio due to recent market turbulence, compared to just one-third (33%) of longer-term retirees. Additionally, 47% said market volatility has impacted the way they approach managing their portfolio and withdrawing or spending down their retirement savings income, compared to 35% of those who have been retired for more than five years.  

As a result, more than half (55%) of recent retirees say they have regrets about how they saved for retirement, with 28% wishing they began saving earlier and 13% wishing they contributed more to their retirement savings and investments each year.

“Retirement planning isn’t just about setting a number and aiming to achieve it; it’s about building a strategy that anticipates life’s changes and regularly revisiting that plan as life happens,” said Kevin Jestice, president of Nationwide Retirement Solutions. “However, it’s not too late for retirees to take steps toward greater financial confidence. Review your budget, explore additional income opportunities and partner with a financial advisor to align your investments with your goals.”

Financial advisors understand retirees’ concerns and can help tackle key issues, Jestice said. In fact, according to Nationwide’s survey, nearly all (97%) advisors agree that rising living costs are making it harder to retire comfortably. As a result, they are shifting their focus for their clients to address the increased burden from healthcare costs and other economic pressures, as well as identifying guaranteed income solutions.

“Advisors play an essential role during the first few years of retirement, helping retirees navigate new financial realities, manage spending and adjust strategies as life unfolds,” Jestice said. “By openly communicating your concerns and goals with an advisor, you can feel more confident your plan will evolve with your needs regardless of changing market environments.”

Jestice shared the following topics recent retirees may want to revisit with their financial advisor:

1. Contributions: Talk with your advisor about tax-efficient ways to boost savings, like Roth conversions. If you’re still working part-time or have earned income, consider catch-up contributions to IRAs or 401(k)s.

2. Withdrawal and Spending Plan: Create or revisit your withdrawal strategy that balances income needs with longevity risk. Bucket expenses into essential versus discretionary spending to prioritize necessities.

3. Investments: Ask about strategies to hedge inflation, like annuities.

4. Healthcare and Long-Term Care: Work with your advisor on estimating Medicare premiums, supplemental insurance and out-of-pocket costs. Explore long-term care insurance if possible.

“This data should also serve as a wakeup call for younger savers to review their savings habits and strategies before they reach retirement,” Jestice said. “The sooner you address potential challenges to your financial security, the more options you have.” 

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More than half (55%) of recent retirees (those retired in the last five years) say they have regrets about how they saved for retirement. More than a quarter (28%) wish they began saving earlier, and 13% wish they contributed more to their retirement savings and investments each year.

Immediate, tangible financial challenges are fueling these concerns. Just 40% of recent retirees say they're on track with their original budget and decumulation plan, and 21% say they’ve had to be more conservative with spending compared to their pre-retirement expectations. Only one in five (20%) have avoided the need to tap retirement savings by relying solely on the guaranteed income of a pension and/or Social Security, resulting in a majority who may need to lean on their self-invested retirement funds accumulated in their working years. 

“Many recent retirees told us they wish they had saved differently, highlighting a critical truth: retirement planning isn’t just about setting a number—it’s about building a strategy that anticipates life’s changes and regularly revisiting that plan as life happens,” said Kevin Jestice, president of Nationwide Retirement Solutions. “Thoughtful, comprehensive planning before retirement can make the difference between uncertainty and confidence in your future. A great way to do this is by working with a trusted financial advisor or leveraging planning resources offered through your workplace retirement plan. For those already retired, it’s not too late to take steps to enhance your retirement strategy. Reviewing your budget, exploring additional income opportunities and working with a financial advisor can help you feel more secure and in control.”   

Market Volatility Hits Recent Retirees Harder
Recent retirees are especially vulnerable to market turbulence, and those new to post-career life are facing more significant headwinds than their peers who retired more than five years ago (longer-term retirees). As a result, recent retirees are more likely to make changes to their portfolios in the early years of retirement. Half (50%) of recent retirees made at least some changes to their retirement portfolio due to market turbulence, compared to just one-third (33%) of longer-term retirees. Additionally, 15% made significant changes to their portfolio – nearly double the 8% of longer-term retirees who did the same.

The impact extends beyond portfolio adjustment and into real-world spending decisions. Nearly half (47%) of recent retirees say recent market volatility has impacted the way they approach managing their portfolio and withdrawing or spending down their savings in retirement, compared to 35% of longer-term retirees.

This market uncertainty is also driving interest in guaranteed income solutions. Thirty-six percent (36%) of recent retirees said they are more likely to put part of their portfolio in an annuity given the events of the last 12 months.

Advisors Recognize the Unique Challenges of Early Retirement
Financial professionals understand the first two years of retirement require heightened attention and strategic adjustments. Based on what they see with their own clients, top challenges for recent retirees cited by advisors include:

• Adjusting to life without a paycheck: Six in ten (60%) advisors say adjusting to not earning active income or not having a job is a challenge their recently retired clients face in their first two years of retirement.
• Managing anxiety about market volatility: More than four in ten (42%) advisors say dealing with anxiety about market volatility while living off investments is a challenge.
• Staying within budget: Four in ten (41%) advisors say maintaining their desired lifestyle within budget constraints is a challenge.

Market conditions are driving advisors to take action. The vast majority (85%) of advisors say recent market conditions caused them to recommend changes to clients' decumulation strategies, and nearly half (45%) made significant changes across most of their recent retiree clients’ decumulation strategies.

Recent Retirees Stay Highly Engaged as Advisors Refocus
Instead of a “set it and forget it” planning approach, advisors report that their recent retirees are monitoring their portfolios closely. 

More than half (56%) of advisors say their recently retired clients review their portfolio and financial plan at least monthly. Nearly one in five (19%) review continuously, with access through digital platforms and periodic advisor contact, and 16% do weekly brief check-ins during market volatility periods.

Financial professionals are adapting their approaches to meet the investment needs of their clients. Notably, 93% of advisors increased their focus on addressing healthcare costs over the last year, and 87% increased their focus on identifying guaranteed income solutions.

“The first few years of retirement are critical, and we’re encouraged to see recent retirees lean on their advisors to navigate a changing market environment. Advisors play an essential role during this period, helping retirees navigate new financial realities, manage spending and adjust strategies as their next chapter begins to unfold,” Jestice said. “Advisors can help boost confidence by reviewing or exploring guaranteed income solutions or other strategies to address longevity risk. With expert guidance, retirees can feel confident their plan supports both today’s needs and tomorrow’s possibilities.”

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

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

Guarantees are subject to the claims-paying ability of the issuing insurance company.
Provisions of these options may vary based on plan selection and/or by state regulation. These investment options may not be available in all states.

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

About Advisor Authority: Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 510 advisors and financial professionals and 2,007 investors ages 18+ with investable assets (IA) of $10K+, August 19-September 2, 2025. Among the investors, there were 180 recent retirees (those who retired in the last five years) and 274 longer term retirees (those who retired more than five years ago).

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

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

“Our research highlights how different generations approach retirement – and what we can learn from them,” said Cathy Marasco, head of Protected Retirement at Nationwide. “Younger savers are showing that early engagement and proactive planning can create confidence and resilience, while older generations offer valuable perspective on the risks of waiting to take action. As we think about resolving to create better financial habits in the year ahead, these insights give all of us a clearer roadmap for building a stronger financial future.”

Young savers are practicing smart retirement behaviors
On average, Gen Z and Millennial savers started contributing to their workplace retirement plans at age 23 and 28 respectively – nearly a decade earlier than Gen X (34) and Boomers (40). They’re also more engaged and protection focused: checking balances weekly, increasing contributions annually, and planning ahead for market volatility. Roughly 7 in 10 younger savers say they have a strategy to safeguard their savings before retirement, compared to just 55% of Gen X and 44% of Boomers.

Millennials, in particular, are leaning more on resources like their company’s HR team, retirement plan providers, and financial advisors to guide their decisions. And both Gen Z and Millennials show greater familiarity with investment solutions that provide downside protection – and are more likely to say they’d use them.

Ultimately, these habits are paying off. Eight in 10 younger savers feel optimistic about their retirement plans. Nearly half also feel confident about the savings they’ve accumulated – compared with just a third of Gen X and a quarter of Boomers.

Older savers share regrets
On the flip side, older savers were candid about what they wish they’d done differently. More than 80% of Gen X and Boomers regret not starting to save or participating in their employer-sponsored retirement plan earlier. Over 8 in 10 also wish they’d focused earlier on strategies to protect their savings from market volatility or convert assets into sustainable income in retirement. These regrets are compounded by persistent knowledge gaps, including:

• Over three-quarters of older savers wish they understood the power of compounding interest and the benefits of maximizing contributions at a younger age
• 54% of Gen X and 39% of Boomers still misunderstand how compounding interest works
• More than half believe their 401(k) will provide predictable monthly income like a paycheck, setting unrealistic retirement expectations

These missed opportunities have real consequences. One in five Gen X and Boomers feel they’re on the wrong track for retirement and almost 1 in 3 now expect to retire later than planned. And economic uncertainty is adding pressure, with many reporting increased anxiety about their retirement savings over the past year.

Starting early pays dividends
Analysis of NRI’s research by The American College of Financial Services highlights just how powerful an early start can be. Among those who began saving for retirement by age 25, three-quarters feel confident or cautiously optimistic about their future, compared to just 46% of those who started later – a 30-point gap. Even beyond that cutoff, the trend holds: optimistic savers began at roughly age 30 or younger, while those who feel anxious or pessimistic started around age 32 or older.

"The lesson is simple: don’t wait for the perfect moment or the perfect amount to start saving," said Eric Ludwig, PhD, CFP®, Director of the Center for Retirement Income at The American College. "Building the habit early – even with modest contributions – sets the foundation for decades of confidence and better retirement readiness."

Kick off 2026 with smarter saving
With the new year underway, it’s an ideal moment for retirement savers to take stock of where they stand and where they want to be. To start 2026 on the right path, consider some simple actions that can help improve your retirement outlook:

• Start now – or increase what you’re already saving. Every day you wait is a missed opportunity for growth. If you’re already contributing, consider a small increase. Even a 1% bump can make a meaningful difference over time.
• Contribute enough to earn your full employer match. Roughly 20% of savers across all generations say they either don’t contribute enough to receive the full match or aren’t sure if they do, leaving money on the table. If your budget allows, consider maximizing contributions to capture even more growth potential.
• Check in with your retirement plan provider or financial advisor. A quick review at the start of the year can help you understand if your current allocation and risk level still align with your goals, and whether rebalancing may be appropriate.
• Prepare for market changes and long-term income. Take time to understand how your current savings will eventually convert into income in retirement and explore plan options that provide protection or guaranteed income – features that can help stabilize your strategy through market shifts.

“A new year is a natural point to reset your financial habits,” said Marasco. “Workplace retirement plans are evolving to include many of the tools and protections needed to build long-term security – like income solutions, portfolio guidance and downside protection – making it easier for savers to take the next step.”

Advisors and plan sponsors can help ensure their participants have the tools they need to be confident and thrive in retirement. Learn about Nationwide’s Protected Retirement solutions or view the full survey findings.

Methodology
Edelman Data and Intelligence (DXI) conducted a national online 20-minute survey of n=2,200 plan participants, on behalf of Nationwide from July 30th – August 13th, 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.

In fact, six in ten (61%) non-retired Gen Xers say they didn’t feel their retirement was an urgent priority, rather a distant milestone, until age 50 or older. Moreover, about a quarter (26%) say they won’t reach that point until age 60 or older.  

This delayed awareness has created a domino effect. Many Gen Xers now feel like they're behind in their planning and are fighting to catch up with their retirement savings. After realizing retirement was nearing, 40% of Gen X investors cut discretionary spending, 34% increased their contributions to retirement accounts, 23% sought out professional financial advice and 19% shifted their investment strategy to reduce risk.

Even though they’re taking action, Gen Xers lack confidence in their ability to stretch savings through the full duration of their retirement – and financial advisors agree with that concern. A quarter (25%) of Gen X investors say they are concerned their savings won’t last more than 14 years, and more than one in ten (12%) say their savings are already dwindling. Many advisors share that unease, with 39% believing insufficient retirement income is one of the biggest obstacles for their Gen X clients’ retirement readiness.

“For Gen Xers, the clock is ticking. Retirement is no longer a distant milestone, but an event that’s right around the corner. These investors have been focused on juggling college costs for their children, caring for aging parents and managing through economic volatility over the last several years, but retirement planning can no longer wait,” said Suzanne Ricklin, vice president of Nationwide Retention and Sales. “Every year of delay means fewer options and greater risk they will miss out on a secure retirement. Making retirement a priority now by connecting with a financial advisor who can help pinpoint the right solutions for Gen Xers’ needs is essential for this generation.”

Macro Pressures Top of Mind
Cost of living and broader macroeconomic pressures are profoundly impacting Gen Xers' retirement plans. Despite being on the threshold of retirement, many are reconsidering their timelines entirely. In fact, 16% of non-retired Gen Xers say they are planning to retire later than initially hoped. More than one in ten (12%) say they plan to work part-time in retirement, and 15% say they don't know if they'll ever be able to retire.

That uncertainty is carrying over into Gen Xers' perspective on their post-retirement lives, too. A quarter (26%) of non-retired Gen Xers believe they would be forced to return to the workforce at some point due to inadequate savings if they retired in the next 12 months. More than four in ten (43%) say they'd continue working in some capacity to supplement income out of necessity.

Swirling macroeconomic pressures over the last year have played a key role in this sentiment. While 29% say they won’t change their allocations, 50% of Gen Xers say the events of the last 12 months have made them more likely to put part of their portfolio into an annuity or other solution that provides guaranteed income.

Concerns about inflation and government benefits are accelerating at an alarming pace. More than half (56%) of non-retired Gen Xers believe inflation will increase in the next year, up from 39% six months prior. Nearly half (48%) believe Social Security and Medicare will be cut in the Federal budget process, threatening the long-term solvency of the program, up from 34% six months ago.

The impact is clear: 89% of Gen Xers believe rising living costs are making it harder to retire comfortably.

Key Catalysts Spur Retirement Action
Gen Xers are learning from their family members' retirement experiences—and it's changing how they approach their own planning. In fact, more than a third (37%) of non-retired Gen Xers say observing peers or family members struggle with retirement planning was a primary trigger for making retirement planning a priority for themselves.

In addition to familial struggles with retirement, the current economic landscape is driving retirement planning to the top of the list of priorities for Gen Xers, as 38% say economic changes or market volatility forced them to prioritize retirement planning. Moreover, advisors' recommendations carry significant weight in Gen Xers' eyes, with 28% saying a financial planning session or advice from an advisor prompted them to make retirement planning a priority.

Financial Professionals Recognize Headwinds, Offer Perspective
Beyond insufficient retirement income, financial professionals have identified other key headwinds facing Gen X clients’ retirement prospects. A quarter (25%) point to insufficient emergency savings as a key retirement obstacle for Gen Xers, and a third (33%) also point to concerns around escalating healthcare and insurance expenses as one of the biggest obstacles for Gen X clients.

In response, advisors are using different, targeted approaches to help their Gen X clients compared to those used with their older clients. More than four in ten (43%) are having more frequent and flexible communication with this cohort, keeping in touch regularly to guide them through the home stretch. Nearly a third (32%) are increasing or introducing the use of annuities with their Gen X clients.

“As Gen X investors approach retirement, working with a trusted financial advisor becomes more critical than ever,” said Ricklin. “This generation faces unique challenges, and a calm, professional perspective can help cut through the noise, keep plans on track and protect the dreams they’ve worked so hard to build. Advisors should help Gen X clients create a holistic financial plan that sets them up to meet all their needs, including a plan to ensure their money lasts as long as they do, providing confidence and clarity when it matters most.”

Nationwide offers resources to help advisors facilitate conversations with Gen X clients, including this whitepaper which explores how annuities can help address this cohort’s inflation and market volatility concerns while also offering the clarity and control they value.  

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

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

About Advisor Authority: Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 510 advisors and financial professionals and 2,007 investors ages 18+ with investable assets (IA) of $10K+, August 19-September 2, 2025. Among the investors, there were 580 Gen X (age 45-60). 

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

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

According to a new survey from the Nationwide Retirement Institute, 61% of non-retired Gen Xers say they didn’t feel retirement was an urgent priority until age 50 or older. Additionally, one in four (26%) say they won’t reach that point until age 60.

The reason for the delay? Gen Xers said the cost of living and broader macroeconomic pressures are impacting their ability to save, with 89% saying rising living costs are making it harder to retire comfortably and more than half (56%) believing inflation will increase in the next year, up from 39% six months ago.  

As a result, many said they feel behind in their planning and are frantically working to catch up with their retirement savings. After realizing retirement was nearing, 40% of Gen Xers said they cut discretionary spending, 34% increased their contributions to retirement accounts and 23% sought out professional financial advice.

“For Gen Xers, the clock is ticking. Retirement is no longer a distant milestone, but an event that’s quickly approaching – and retirement planning can no longer wait,” said Suzanne Ricklin, vice president of Nationwide Retention and Sales. “Every year of delay means fewer options and greater risk you will miss out on a secure retirement. It’s encouraging to see some Gen Xers seeking out professional financial advice now, but for those who still haven’t done so, connecting with a financial advisor is a great way to pinpoint the right strategies to help you maximize the impact and efficiency of your retirement savings and close any gaps you may have in your plan.”

A financial advisor can help Gen Xers create a holistic financial plan that includes guaranteed income in retirement, Ricklin said. In fact, according to Nationwide’s survey, 32% of advisors are already increasing or introducing the use of annuities with Gen X clients – one of the only investment vehicles that can provide guaranteed income for life ensuring you will not outlive your savings needed to fund your retirement, she said.

Advisors are also putting an emphasis on staying in touch with Gen X clients as they get closer to retirement, with 43% saying they are having more frequent and flexible communication with these investors. That means you have a partner to help you design strategies to support your goals that can be leveraged throughout your retirement journey, Ricklin said.

“Gen Xers face unique challenges, caring for aging parents and adult children while saving for retirement amid ongoing economic volatility,” Ricklin said. “Partnering with a trusted financial professional can help you face these obstacles with a calm, strategic mindset, keep your plans on track and protect the dreams you’ve worked so hard to build.”

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

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12/2025

• 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.

According to a recent survey from Nationwide, three-fourths (76%) of annuity owners are confident they will be able to retire when they want, compared to only 49% of those who do not own an annuity. However, the age investors plan on retiring has shifted since 2023 when Nationwide initially polled consumers between the ages of 45-60. This cohort now expects to retire at 64.3, six months later than in 2023 (63.7).

“It’s not surprising to see annuity owners feeling confident in their ability to retire, particularly because annuities are one of the only investment products that can provide guaranteed income for life no matter how long someone lives and regardless of the economic environment,” said Rona Guymon, senior vice president of Nationwide Annuity Distribution. “This presents an opportunity for financial professionals to connect with investors who don’t currently own an annuity to see if one aligns with their financial goals and retirement plans. In any economy, and at all stages of the financial life cycle, annuities can provide protection and guaranteed income.”

Interest in annuities is growing

In addition to helping them feel confident about their retirement timeline, investors also recognize the value of annuities when it comes to guaranteed income.

According to a recent Greenwald Research program sponsored by Nationwide, consumers have more confidence in the guarantee from an annuity than they do from Social Security. Seventy percent of consumers said they were confident they would receive annuity income payments as promised, vs only 61% that said they were confident they would receive their full Social Security benefits.

This confidence in guaranteed payouts may be a reason interest in annuities is growing, with 31% of investors who have never purchased an annuity significantly more likely to consider a purchase today than in 2023 (5%), according to Nationwide’s survey.

“For years, misinformation and misinterpretations have plagued annuities, but as advisors have stuck with fact-based messages to dispel those myths, we’ve seen sentiment start to change. It’s incredible to see investors recognizing the unique benefits annuities offer and turning to them as a key solution for a stable retirement,” Guymon said. “This reinforces how crucial it is for advisors to help their clients fully understand the benefits and drawbacks of all retirement solutions so they can make informed decisions about the products that are right for them.”

Seeking out a financial professional partner

Interest in annuities isn’t the only thing on the rise. More investors are seeking out financial professionals and advisors too.

Almost half (48%) of investors in Nationwide’s survey said they are working with a paid financial professional, up from 36% in 2023. Those who work with a financial professional are also more likely to have discussed annuities (78% in 2025 vs 66% in 2023), and more likely to say their financial professional views annuities positively (55% in 2025 vs 39% in 2023).

“Our survey data highlights an opportunity for advisors to connect with the 52% of investors who don’t currently receive professional financial advice, helping them gain the knowledge of solutions like annuities that will allow them to retire with confidence,” Guymon said.

The Nationwide Retirement Institute offers access to planning tools and consultative support that financial professionals can use to connect with new clients, helping to build a trusted and lasting relationship.

About Nationwide and Zeldis Reseach’s Future Annuity Buyers Study:

The research was conducted online within the U.S. by Nationwide Mutual Insurance Company and Zeldis Research from July 17-24, 2025, among 699 consumers who qualified as “Future Annuity Buyer” targets. This target was defined as consumers ages 45-60, not retired, with income and asset thresholds of at least $100,000 and $150,000, respectively.

About Greenwald Research’s Retiree Insights Program:

The research was conducted online within the U.S. by Greenwald Research in June 2025, among 1,000 consumers. Consumers were between 50-70 years old with investable assets of at least $200,000, no defined-benefit income and involved in household financial decisions. Nationwide Mutual Insurance Company was a sponsor of this research.

A recent survey from the Nationwide Retirement Institute reveals the emotional and financial realities facing caregivers today. Among those who have served as caregivers, the average time commitment is more than 22 hours per week, with $372 in monthly out-of-pocket expenses. Nearly half of Millennial and Gen X caregivers say caregiving has strained their relationships with spouses, children, or friends. Yet despite these challenges, 70% say they would choose to be a caregiver again.

“Caregivers are the unsung heroes of our health care system,” said Holly Snyder, president of Nationwide Life Insurance. “As we celebrate Long-Term Care Awareness month, we should all salute America’s caregivers for their dedication, compassion, and resilience —not just this month, but every day. Their sacrifice should serve as a call-to-action for the financial community to help more Americans, and their loved ones, prepare for the future.”

Need for Greater LTC Awareness and Education

The survey also highlights the need for greater public education around long-term care. While 22% of respondents say they have long-term care insurance (LTCi), industry data from LIMRA shows actual ownership is closer to 3–4%.

Additionally, 58% of Americans mistakenly believe Medicare will cover long-term care costs, which it largely does not. Four in ten people (41%) doubt they will live long enough to need LTC, and however, 70% over age 65 will need some sort of LTC in their lifetime.*

Many also overestimate the cost—47% by two times and another 23% by three times. Encouragingly, once consumers learn the actual cost, nearly half (47%) say they are more willing to consider purchasing LTCi.

The Role of Financial Professionals

Despite widespread concern, only 1 in 5 Americans have discussed long-term care costs with a financial professional. Among those who have not, the most common reason is that their advisor has not brought it up. Yet two-thirds (66%) of consumers trust that their financial professional will tell them when it is the right time to buy LTCi.

“Financial professionals have a responsibility—and an opportunity—to lead these conversations,” said Snyder. “By helping clients understand the real costs of caregiving, the risks of relying solely on family, and the value of long-term care insurance, they can empower families to plan with confidence.”

Planning for the Future Starts Today

To learn more about the 2025 Nationwide Retirement Institute Long-term Care survey and access planning resources, visit nationwide.com/SimplifyLTC, and visit nationwide.com/LTCbasics to access and share client-approved educational and planning resources.

*Long-termCare.gov,2025

NFM-25181AO

The good news? “Credit and loan management solutions, like securities-backed lending (SBL), can help investors address all three of those concerns,” said Debra Griffin, head of Nationwide’s SBL business. However, as SBL gains popularity, misunderstandings about its advantages and potential risks may cause confusion among clients.

“The SBL industry has seen significant growth over the last five years as investors seek out ways to access liquidity by leveraging their investment portfolios as collateral,” said Griffin. “Despite that growth, misunderstandings about the product persist, which is why it’s so important for advisors to educate their clients about solutions that may be right for them, including SBL.”

Here are a few common misperceptions about SBL that advisors can address with clients:

SBL is only for rich people

One of the most common SBL myths across the industry is that it is only for the wealthiest investors, Griffin said.

“While it’s true SBL used to be reserved for the ultra-wealthy, they have become much more accessible in recent years, now serving as a popular source for funding real estate purchases, education expenses and paying tax liabilities at a time when many of us are struggling with high costs,” said Griffin.

Lenders determine the value of a securities-backed line of credit (SBLOC) based on an investor’s portfolio, with the minimum amount needed to open one now much smaller than it was in the past. For example, Nationwide’s SBL solution, Nationwide Smart Credit, offers a $26,000 minimum line of credit, allowing more modest investors opportunities to meet their liquidity needs.

All debt is the same

“Many investors also believe they should avoid all debt, but not all debt is the same,” Griffin said. A SBLOC provides strategic liquidity, she explained, allowing investors to use their investments to access cash and potentially enhance their portfolios. Investors can use SBL to seize business opportunities, boost retirement income and manage estate planning needs. Unlike high-interest consumer debt such as credit cards or personal loans, SBL also offers flexible repayment options.

“Investors may believe other lending options, like credit cards or individual bank loans, may be more accessible or better options in the current environment, but SBL is a smart alternative right now,” Griffin said. “Advisors should talk to their clients about the lower interest rates available through SBL compared to traditional loans, home equity lines of credit or credit cards. SBLs also allow investors to avoid paying capital gains taxes when liquidating.”

SBL only makes sense in low-interest rate environments

Investors may also believe that SBL, like most credit and loan management solutions, only works well in low-interest rate environments.

“In fact, a SBLOC performs effectively in higher-interest rate environments like we’re experiencing right now,” Griffin said. “We’re also seeing interest rates start to decline, which will make them even more attractive.”

The Federal Reserve cut rates by 25 basis points last week for the second time this year, and Nationwide’s Office of Economics expects them to cut another 75 basis points by the end of 2026.

Loan paperwork is cumbersome and takes too long to complete

Another common myth Griffin said her team hears frequently is that loans in general take too long to process and provide access to cash when needed.

“Depending on the type of lender and how much information is needed for the application, funds can take weeks to be sent,” Griffin said. “However, the SBL industry is speeding up that timeline using digital, online processes and paperwork so investors have the cash they need when they need it.”

Some companies – like Nationwide – have made it so clients can access cash in as little as hours or days, Griffin explained.

“It’s important for advisors to talk with their clients to truly understand their goals so they can anticipate their needs and recommend solutions that fit their financial journey,” Griffin said. “While SBL comes with a lot of misconceptions, helping break those down with your clients can ensure they’re not missing out on a product that could help them – and position you as a trusted partner that can help them achieve their goals.”

Advisors who are looking for more information on securities-backed lending, including key benefits and advantages, can visit https://www.nationwide.com/financial-professionals/products/corporate-solutions/sbl.

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10/2025

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About Advisor Authority: Methodology

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

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

About The Harris Poll

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

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

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

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

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

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

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

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

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10/2025

These conditions include the increased cost of living, cited by 51% as one of the biggest long-term challenges to their retirement portfolio, and inflation, with 15% saying they will retire later than planned because of it.

Possibly as a result, some pre-retirees are focused on building their savings over the next year, including one fifth (20%) who say their biggest financial concern over the next 12 months is saving enough for retirement. Many also plan to continue working in some capacity in retirement to preserve those savings. More than One third (35%) of pre-retiree investors are planning to work in retirement, and 27% say they’re delaying their retirement – two approaches that are radically different from previous generations.

“Many pre-retiree investors saw their parents and grandparents retire with the confidence that came from having traditional pension benefits – benefits that are much less common today,” said Craig Hawley, president of Nationwide Annuity. “It’s not surprising that pre-retiree investors are questioning whether their dream retirement is even possible as they grapple with lingering inflation, market volatility and concerns about running out of money in retirement. As a result, we’re seeing many of them abandon conventional retirement strategies used by previous generations. Rather than try to figure this out on their own, pre-retirees should lean into relationships with trusted financial professionals to build a plan that puts them in the best position for success.”

Not your grandparents’ retirement: Veering from traditional retirement rules
Overall, nearly six in ten (59%) pre-retiree investors say their expectations for retirement have changed significantly in the last five years. At the same time, many also indicate they do not subscribe to traditional retirement norms and strategies in the same way previous generations have, citing today’s economic environment as the cause.

The 4% Rule: More than a third of pre-retirees (35%) do not find the 4% Rule (withdrawing 4% of your retirement portfolio to make it last through retirement) to be a relevant retirement rule of thumb in today’s economic environment. Some (13%) investors in this group are abandoning the 4% Rule altogether.

100 Minus Age: Additionally, 53% do not find the ‘100 Minus Your Age in Stocks’ rule (deciding the portion of your portfolio dedicated to stocks based on your age) to be relevant in today’s economic environment.  

Magic Number: Pre-retirees are also abandoning a ‘target’ retirement age or savings goal. Over half (52%) of pre-retiree investors do not believe in the concept of a ‘magic number’ for retirement savings.

Retiring at 65: Nearly two thirds (64%) say the norm of retiring at age 65 doesn’t apply to people like them, up from 59% a year ago.  

Advisors aren’t ready to abandon tried-and-true rules of thumb
Facing largely ambiguous retirement prospects, pre-retirees are turning to financial professionals – with many having done so in the past year. Of the 40% of pre-retirees who currently work with a financial advisor, more than a quarter (28%) started working with their advisor in the last 12 months.

Financial advisors still support traditional retirement rules of thumb, even as their pre-retiree clients abandon legacy investment practices. A significant majority (84%) of advisors find the 4% Rule to be relevant in today’s economic environment, and nearly three fourths (73%) find the ‘100 Minus Your Age in Stocks’ Rule to hold value, too.

“Our survey data shows a disconnect between pre-retiree investors and advisors when it comes to traditional retirement strategies – a gap that may be driven by the fact that more than half of pre-retiree investors are not currently working with an advisor and may not understand how these tried-and-true rules of thumb can benefit them,” Hawley said. “While traditional retirement rules are not going to be for everyone, working with a trusted advisor can help pre-retirees determine which ones, if any, are right for them.”   

Financial professionals cite macroeconomic factors as key disruptors to their clients’ retirement planning strategies. Nearly half (46%) say inflation influenced their pre-retiree clients to rethink or redefine their retirement planning strategies. Nearly the same share of advisors (45%) blame the rising cost of living and 37% point to a fear of running out of money in retirement.

With these headwinds in mind, advisors say their pre-retiree clients’ retirement prospects look much different than those of their parents or grandparents. More than four in ten (42%) advisors say their pre-retiree clients plan to ‘phase’ their retirements (work six months, off six months, or work fewer hours).  

“Pre-retiree investors are at an age where the financial decisions they make can carry massive implications for their retirement security,” Hawley said. “Financial professionals can help them create a holistic plan for addressing important factors like Social Security, health care, long-term care, taxes and income in retirement. While some of these investors may feel hopeless, a good financial professional can help them chart a course for a more secure retirement and potentially head off challenges while there’s still time to address them.”

The Nationwide Retirement Institute offers resources to help facilitate conversations on these topics. These resources can help advisors address plans and identify gaps for their pre-retiree clients before it’s too late.

For more 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 379 pre-retirees in January 2025, 336 pre-retirees in August/September of 2024.

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. The sample data for the subset of pre-retiree investors age 55-65 who are not retired is accurate to within ± 6.0 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.

As Americans live longer than ever – with the U.S. Census Bureau projecting the number of centenarians to quadruple by 2054 – the likelihood of needing LTC, and needing it for many years, is rising sharply. And many are not ready: 41% of Americans doubt they will live long enough to use long-term care insurance, even though nearly 70% of Americans turning 65 today will need LTC.

The financial strain of long-term care is already felt as these expenses are increasing sharply across all care types. More than half of Americans, 58%, are concerned about their ability to pay for their or their partner’s LTC and a shocking 59% say they plan to use Medicaid to help pay for those expenses. This suggests many expect to spend down savings enough to qualify for the safety net program intended for individuals with limited income and assets – one currently under threat of major cuts.

Potential cuts to Medicaid could significantly impact LTC options for our aging population, as the program is the single largest source of funding for these services. Despite its critical role, 50% of Americans do not believe that cuts to Medicaid will affect their own LTC – a disconnect that highlights the urgent need to educate the public about the real financial risks associated with aging.

Too Expensive to Move, Too Risky to Stay
Many see aging at home as a way to avoid rising costs, but it’s not necessarily without challenges. While 77% of Americans would prefer to receive long-term care in their own home, 41% say their current home may not be safe or accessible for aging in place, and nearly half, 47%, say they expect modifying their home for aging in place to be unaffordable.

For those considering a move, the barriers are just as steep: 54% believe today’s real estate market makes it difficult for them to move or find an ideal home for retirement. As a result, 42% of baby boomers and older (age 61+) plan to remain in their current homes without making renovations or changes once they retire – despite the potential risks that accompany that decision.

These growing pressures are also affecting family finances across generations. Half of Americans say LTC costs will diminish their children’s inheritance, and many are already bearing the burden of caregiving. Caregivers report spending an average of nearly $400 a month on non-reimbursed, out-of-pocket expenses such as prescriptions, transportation, and home necessities ($372/month). This creates a financial ripple effect, with 42% of caregivers believing it will likely use up the inheritance they had hoped to leave to their own children. 

“Too many Americans are entering the most vulnerable stage of life with a false sense of security,” said Holly Snyder, president of Nationwide’s life insurance business. “We underestimate how long we’ll live, how likely we are to need long-term care, how much that care will cost, and how we’ll pay for it, leaving a growing number of Americans – and their families – unprepared for the financial and emotional toll that often comes with aging.”

Long-Term Care Insurance Is Misunderstood and Underused
Long-term care insurance (LTCI) is specifically designed to address these concerns, but awareness and usage remain low. While 32% believe LTCI would be one of the most helpful resources for preparing to live to 100, only 1 in 10 actually report owning a policy, according to a separate report released by Nationwide and The American College of Financial Services. Even more concerning, the intent to purchase LTCI appears to be declining: 40% of Americans age 29+ in Nationwide’s 2025 Long-Term Care survey said they do not plan to purchase coverage, up from 32% the previous year.

Cost continues to be a major perceived barrier. About four in ten, 38%, adults believe LTCI is too expensive, a perception often driven by lack of information: 64% overestimated the monthly price of a LTCI plan. When presented with accurate pricing, about half, 47%, would be more willing to consider purchasing similar coverage.

Even those with access to financial advisors are missing the opportunity to plan properly. Among respondents who work with a financial professional but have not discussed LTC costs with them, the most common reason is simple: their advisor has not brought it up as a planning topic (34%). In fact, 66% say they trust their advisor will tell them when it is the right time to buy long-term care insurance.

“Proactive education and planning are more important than ever,” said Snyder. “Many people don’t realize how comprehensive long-term care insurance can be – it’s not just for nursing homes. It can help cover home modifications for accessibility, compensate friends or family members who provide care, and, if the benefits go unused, it can even pay out tax-free to beneficiaries. Financial professionals have a critical opportunity and responsibility to guide clients through these conversations, break down misconceptions about cost and coverage, and help families understand what solutions will work best for them.”

Planning for long-term care is not just about protecting assets, it is about protecting families. This year’s survey highlights how urgently society needs to address the myths around Medicare, shift perceptions about affordability, and help Americans take control of their future care.

To learn more about the 2025 Nationwide Retirement Institute Long-term Care survey, visit nationwide.com/SimplifyLTC

Methodology
The research was conducted online in the United States by The Harris Poll on behalf of Nationwide among 1,324 Americans ages 29+ with household income of $75K+. The survey was conducted March 17 – Apr. 7, 2025.

Data are weighted where necessary by age by gender, race/ethnicity, region, education, marital status, household size, household income, and political party affiliation to bring them in line with their actual proportions in the population.

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 +/- 3.6 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

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 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.

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.

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.

Women of All Ages Challenged by Caregiving, Economic Outlook
Caregiving commitments are forcing women of all generations to make difficult decisions between family obligations and career advancement. More than two-thirds (67%) of women investors who support children or aging parents say caregiving responsibilities have impacted their careers, and 18% say supporting children or aging parents has prevented them from saving for retirement.

Because of these caregiving responsibilities, women have taken actions that could have an adverse impact on their ability to save for retirement, including reducing work hours (26%), limiting professional development opportunities (19%), taking extended family or medical leave (18%), switching to part-time positions (13%), or declining or delaying promotions (11%).

Economic uncertainty is also creating financial stress for women. More than four in ten (42%) non-retired women investors believe inflation will increase in the next year. Nearly three in four (73%) women investors are concerned about a U.S. economic recession in the next 12 months, and a quarter (25%) describe their financial outlook for the next year as pessimistic.

“Our study sheds light on the financial challenges women of all ages are facing. Recent conditions of market uncertainty combined with the significant stress that family caregiving responsibilities are putting on women are certainly creating a challenging environment,” said Amelia Dunlap, vice president of Nationwide Retirement Solutions Marketing. “But the concerns of women investors are not one-size-fits-all. We’re seeing each generation of women process these challenges in different ways, creating opportunities for financial professionals to better serve clients in these groups."

Gen Z Women Focused on the Near-Term, but Open to Seeking Financial Advice
Still early in their careers, Gen Z (aged 18-28) women investors are more focused on addressing immediate financial obligations rather than long-term planning. This cohort lists basic household expenses, like groceries and utilities, as a top financial commitment over the next 12 months (61%), followed by paying down loans and debts (42%).

Further, 35% of Gen Z women list caring for family members as a top financial commitment over the next 12 months — the most of any generational cohort (vs. 23% of Millennials, 23% of Gen X, and 16% of Baby Boomers+).

While focused on these short-term financial commitments, Gen Z women recognize they need assistance. About a quarter of Gen Z women who support children or aging parents (23%) are likely to seek advice from a financial professional to help manage the pressure of supporting family members. This number slightly outpaces their older peers (22% Millennial, 22% Gen X).

Millennial Women Challenged by Caregiving Responsibilities and Career Disruptions
Caregiving commitments pose a major challenge for Millennial women (aged 29-44) as they report they are facing more impacts to their career compared to their older and younger peers.

More than half of Millennial women investors who support children or aging parents (55%) say they have frequently or occasionally experienced career or income disruptions due to caregiving responsibilities for younger or older loved ones in the past five years.

Nearly a quarter (22%) say they have gotten a second job to supplement their income to help manage the financial pressure of caregiving and 18% are taking on credit card debt to do the same – emphasizing the financial sacrifices needed to meet caregiving demands.

One in ten (10%) Millennial women who support children or aging parents say they were terminated or fired from employment due to familial caregiving responsibilities, and a third (32%) say they have reduced work hours. What’s more, 17% say they were forced to decline or delay a promotion.

To combat this, Millennial women are tapping financial advisors to guide them through uncertainty. Women investors in this generation who work with an advisor are most frequently discussing managing debt (32%), solidifying a long-term retirement plan or primary retirement goals (29%) and building up an emergency savings fund (27%).

Challenged by Debt and Career Disruptions, Gen X Women are Falling Behind in Retirement Savings
While they may be more financially established than their younger peers, Gen X women (aged 45-60) are still prioritizing paying down debts as they approach retirement age. Four in ten (40%) list paying down loans and debts as a top financial commitment over the next 12 months.

As they work to tackle debt, these investors may be sacrificing their broader progress towards retirement. One in five (20%) non-retired Gen X women say they are significantly behind on their retirement savings goals and need to make changes, and an additional 34% admit they feel behind but are working to catch up.

Although debt is top of mind for this generation, career and income disruptions due to caregiving responsibilities are also changing Gen Xers’ perspective on retirement possibilities. About half (47%) of Gen X women who support children or aging parents say they have frequently or occasionally experienced career or income disruptions due to caregiving responsibilities for loved ones in the past five years – and 25% of Gen X women say their career progression has negatively affected their ability to save for retirement.

These saving struggles and income disruptions have significantly impacted Gen X women’s retirement savings goals. Nearly half (49%) of Gen X women now believe they need $1 million or more in retirement savings to feel comfortable about their financial future, including 23% who feel they need $2 million or more. Despite this, just 27% of women investors in this generation have $500,000 or more saved for retirement.

Despite Career Stability, Boomers Still Concerned About their Ability to Retire
Boomer women (aged 61+) do not have the same financial concerns as their younger counterparts, as they are more likely than any generation to not financially support their children or aging parents (81% vs. 32% of Gen Z, 18% of Millennials, 50% of Gen X). Debt is also not a focus, as only 3% of those who work with a financial professional are discussing managing debt with their advisor (vs. 32% of Millennials, 20% of Gen X and 42% of Gen Z).

Yet, the youngest Boomer women are just four years from the ‘traditional’ retirement age, and half (51%) of this cohort say the norm of retiring at 65 doesn’t apply to people like them. In addition, 35% of non-retired Boomer women expect to retire between 66-70 years old, and 17% don’t expect to retire by age 70.

What’s more, a quarter (25%) of Boomer women say economic conditions over the last five years have delayed, altered or canceled their dreams for retirement.

“It’s understandable that women investors, who often serve as primary caretakers for their family, feel challenged by the current economic environment and the pressures of taking care of their loved ones,” said Suzanne Ricklin, vice president of Retirement Solutions Sales for Nationwide. “Our data highlights an opportunity for women investors of all generations to seek guidance from advisors to turn their financial anxiety into proactive action in the form of a holistic plan for retirement. It’s important for women to ask questions and be clear with their advisors about their concerns and goals. By confidently communicating their expectations and priorities, women can work with their advisors to address the risk of allowing near-term family obligations to jeopardize their long-term financial security.”

Advisors Are Confident in their Ability to Help Women Clients
Advisors are well-positioned to support their women clients as they plan for and approach retirement. Nearly all advisors (95%) say they understand the needs of women clients and feel well-equipped to serve them, and 92% say they plan to grow their base of women clients in the next 12 months.

However, despite overwhelming confidence from financial professionals, just under half (48%) of women investors who pay to work with an advisor or financial professional feel they understand their financial goals at this stage in their lives. 

“While I believe advisors want to build relationships with more women clients and have the expertise to help them, our survey data shows a disconnect, highlighting an opportunity for advisors to take a step back and ensure they are listening to women’s goals and addressing their concerns before offering solutions,” Ricklin said.

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

Advisors are bringing solutions to the table
Nearly all (93%) advisors say they have women clients who care for children or aging parents and are guiding them through the associated financial challenges.

To help manage the financial pressure of supporting children or aging parents, 47% of advisors are recommending their clients leverage tax deductions and credits, such as declaring dependents on tax returns. Nearly the same amount (45%) recommend cutting back on non-essential expenses like vacations, and 44% suggest prioritizing retirement savings over other expenses.

“In the current highly volatile market conditions, advisors can help women investors stay focused on long-term strategies to avoid making short-sighted decisions based on near-term economic or caregiving impacts,” Dunlap said. “Regardless of income or savings level, one of the key roles an advisor can play is to help calm investor anxiety by sharing insights on historical market cycles and providing solutions that help address their fears.”

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 1,145 women in total including 176 Gen Z (aged 18-28) women, 316 Millennial (aged 29-44) women, 290 Gen X (aged 45-60), and 363 Baby Boomers+ (aged 61+) women.

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 Kristen Vasas-Samson.

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

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

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

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

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

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

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

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

NFM-24554AO
01/2025

As they consider whether or not relocating will improve their retirement finances, 32% of all investors do not believe their current location makes sense financially as a place to retire, led by those in the Northeast (41%) and West (37%) who often face higher tax burdens. About one in six investors (16%) across the country say they will be forced to relocate to a more affordable region due to cost of living in their area. Additionally, 41% of non-retired investors expect to retire at 66 or later, with Northeasterners (47%) being slightly more likely to share this view.

“While it’s clear that investors across America are facing many of the same challenges, their attitudes and actions may look a little different, depending on where they live,” said Eric Stevenson, president of Nationwide Retirement Solutions. “Between inflation and a lack of savings, many pre-retirees are likely feeling they don’t have enough to make a traditional retirement work. Our survey provides great insights to help advisors, financial professionals and plan sponsors across the country understand these investors and tailor their approach to meet their personalized needs.”

Investors in the Northeast Feel the Burden of High Living Costs
While many Northeastern investors remain optimistic about their retirement prospects, high living costs are prompting significant financial lifestyle changes before they leave the workforce.

Nearly half (46%) of Northeasterners describe their financial outlook for the next 12 months as optimistic. These investors indicated they had a median retirement savings of about $250,000. However, 20% expect to relocate to a more affordable region in retirement due to the cost of living, surpassing the national average of 16%.

One in four Northeastern investors (25%) anticipate working in retirement to supplement their income out of necessity due to cost of living, and 19% of non-retired Northeasterners say they might withdraw money from retirement savings prematurely to afford cost of living if they retired in the next 12 months.

According to Nationwide Retirement Solutions participant data across corporate, nonprofit and government sectors, some plan participants in the Northeast took potentially adverse actions with their 401(k) or 403(b) plans in 2024. Participants in this region had the second highest level of contribution stops and the lowest number of contribution increases among all regions.¹

Inflation, Smaller Nest Eggs Impact Retirement Confidence in the Midwest  
Inflation remains a key concern for Midwest investors, with only 41% saying they were optimistic about their 12-month financial outlook – the lowest of all regions. Survey respondents also reported the smallest nest eggs of about $200,000.

While Midwest investors may be the most pessimistic, they also are the least likely to make financial lifestyle changes – perhaps due to the generally lower cost of living and taxes in their region. Just 32% of Midwesterners say they plan to work beyond age 65 – the smallest share of any region. Only 11% expect the cost of living in their area to force them to relocate to a more affordable region for retirement, well below the national average.

Nationwide Retirement Solutions plan participants across corporate, government and non-profit sectors in this region had the highest level of contribution increases to defined contribution plans in 2024, likely positioning themselves for better financial security over time.¹

Southern Investors Confident but Expect to Work Longer
While 43% of Southern investors express an optimistic financial outlook for the next 12 months, they share many of the same concerns as the rest of the country.

Nearly three in 10 (27%) non-retired Southerners expect to delay retirement and 39% say they would need to continue working in some capacity to supplement their income if they retired in the next 12 months. Further, 62% believe the norm of retiring at 65 doesn’t apply to people like them, while 72% say living costs will impact their ability to retire. Southern survey respondents indicated they held a median retirement savings of $250,000.

Nationwide Retirement Solutions participant data across corporate, government and non-profit sectors shows participants in the Southern region were most likely among all regions to take hardship withdrawals from their 401(k) or 403(b) plans in 2024, a move that could have a long-term impact on their financial future.¹

Larger Savings Fuels Financial Confidence in the West

More than four in 10 (44%) investors in the West feel optimistic about their financial outlook in the next 12 months. What’s more, investors in this region indicated the highest median level of savings of all regions, at about $300,000.

However, inflation weighs on Western savers, with seven in 10 (69%) saying the cost of living will impact their ability to retire, and about 31% saying their current state or city is not the place they want to be in retirement.

Nationwide Retirement Solutions plan participant data across public, private and non-profit sectors shows Western savers took some potentially adverse actions in 2024, with higher levels of contribution stops and decreases in their 401(k) or 403(b) plans when compared to other regions.¹

Advisors Help Clients Prepare for Financial Challenges
Advisors across the country are bracing for financial adversity, with 78% expressing concern about a U.S. economic recession over the next 12 months. Inflation tops the list of client concerns over the next 12 months, cited by 34% of advisors, with regional variations: Advisors said inflation concerns among clients were highest in the Northeast and Midwest (36% each), followed by the South (34%), and West (29%).

Tax planning and retirement savings remain top priorities across regions. Advisors frequently discuss tax planning strategies (Northeast 33%, Midwest 37%, South 37%, West 33%) and accumulating sufficient savings to enter or stay in retirement (Northeast 27%, Midwest 31%, South 32%, West 33%) with their clients.

Advisors are also emphasizing retirement timing and long-term care with clients. They say they are frequently talking to clients about when they are financially ready to retire (41% West, 33% Northeast, 37% Midwest, 32% South), and considering long-term care solutions (34% West, 22% Northeast, 21% Midwest, 24% South).

Advisors are largely unified in the solutions they use to help clients protect their assets against market risk, widely using annuities, with advisors in the Midwest (85%) and West (78%) most frequently incorporating them into client plans.

“It’s good to see advisors tuned into the needs of their clients who are thinking about relocating in retirement. Advisors have an opportunity to help these clients consider factors like tax implications, healthcare needs and availability, and community support to make a more informed decision about whether or where they should relocate,” Stevenson said. “To help ease worries about long-term financial security, I'd also encourage advisors to continue exploring protection and income solutions like annuities. Many employer-sponsored retirement plans across the country are now offering solutions that protect against volatility and guarantee income in retirement as well. Advisors also have a great opportunity to help their plan sponsor clients understand the value of including these solutions as an investment option within their plan to help participants feel more confident about their financial future.”

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 2,496 investors ages 18+ with investable assets (IA) of $10K+, August 26-September 13, 2024. Among investors, there were 492 Northeasterners, 463 Midwesterners, 990 Southerners, and 551 Westerners. Among advisors, there were 135 Northeasterners, 137 Midwesterners, 195 Southerners, and 143 Westerners. The respondents were grouped into each region based on the state they indicated living in.

Regional cuts described in this study are defined as follows:

• Northeast: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, New Jersey, New York, Pennsylvania
• Midwest: Illinois, Indiana, Michigan, Ohio, Wisconsin, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
• South: Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, Washington, D.C., West Virginia, Alabama, Kentucky, Mississippi, Tennessee, Arkansas, Louisiana, Oklahoma, Texas
• West: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming, Alaska, California, Hawaii, Oregon, Washington

Respondents for this survey were selected from among those who have agreed to participate in our surveys.   The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within + 4.0 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. The sample data for the subset of pre-retiree investors age 55-65 who are not retired is accurate to within + 6.7 percentage points using a 95% confidence level. 

For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Kristen Vasas-Samson.

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 the survey, a striking 82% of employees over the age of 45 wish they had sought advice or guidance on retirement savings when they were younger. The same number wish they understood the importance of compounding interest sooner, regret not taking retirement saving more seriously during their younger years, and wish they had focused more on income protection strategies at an earlier age. 

“New Year’s resolutions often fall by the wayside when they feel too overwhelming, but financial resolutions don’t have to be overly ambitious to make a difference,” said Suzanne Ricklin, Vice President of Retirement Solutions at Nationwide Financial. “Starting small—like increasing retirement contributions by just a percent or setting aside a little more in savings each month—can lead to meaningful progress over time. These small financial changes are easier to stick with and thanks to the power of compounding interest, even small steps can have a significant impact on your future.”

Turning financial regrets into New Year’s resolutions
Through the survey, older employees shared valuable financial lessons they wish they had known earlier, offering younger generations a roadmap to avoid common retirement regrets. Their advice inspires actionable New Year’s resolutions that can pave the way to long-term financial success:

• Resolution 1: Start saving now—even small amounts make a big difference. More than three-quarters (76%) of workers aged 45+ wish they had started saving earlier. Whether you’re just beginning or already contributing to a retirement plan, it’s never too late to start or increase your savings. Even small steps, like contributing monthly to a 401(k) or increasing your current contribution by 1 – 2%, can lead to significant growth over time thanks to the power of compounding interest.
• Resolution 2: Maximize your employer match. Don’t leave additional funds on the table. Contribute enough to your retirement plan to receive your employer’s full match. If your employer doesn’t offer a match, explore other options, such as increasing your contributions to tax-deferred accounts like IRAs or HSAs to boost your savings.
• Resolution 3: Build an emergency fund. Having savings readily available to pay for an unexpected expense is essential for protecting your long-term finances. More than half (56%) of employees identified having an emergency fund as a top priority, yet many Americans fall short—27% have no emergency savings at all, according to Bankrate's 2024 Annual Emergency Savings Report. To get started, set up automatic monthly transfers to a dedicated savings account through your bank.
• Resolution 4: Tackle debt strategically. Paying down debt is essential for financial health, but it shouldn’t come at the expense of saving for retirement. Prioritize eliminating high-interest debt, like credit cards, while still contributing to your retirement plan. Striking this balance can help grow your savings through compounding interest while easing the burden of high-interest debt.
• Resolution 5: Take advantage of employer-sponsored resources. Many retirement plans offer free tools, educational materials, calculators and trained resources to help optimize your strategy. Take advantage of these resources and reach out to your plan administrator for personalized guidance. Ask whether your plan offers solutions to help plan for income in retirement, and if not, consider advocating for them as they can play a significant role in achieving your retirement goals.

Nationwide offers a variety of educational resources for newer investors.

Tackle retirement challenges with your financial professional
Planning for retirement can feel overwhelming—many American workers report facing challenges like determining how long their savings need to last (61%), understanding how to maximize benefits (57%), turning retirement savings into reliable income (55%), and figuring out how much they should be saving to reach their goals (55%). These uncertainties can make it difficult to approach retirement with confidence.

Meeting with a financial professional in the New Year can help alleviate these concerns by offering personalized advice and a clear strategy.

“No one should have to navigate retirement planning alone,” said Ricklin. “A financial professional can simplify the process, provide answers to your most pressing questions, and create a plan tailored to your goals and timeline, giving you confidence to take control of your financial future.”

To learn more about Nationwide’s protected retirement solutions, visit:

• For financial professionals
• For plan sponsors

Methodology
Edelman Data and Intelligence (DXI) conducted a national online survey of n=500 private plan sponsors, n=100 public plan sponsors, n=2,200 plan participants, n=400 peak retirement plan participants, and n=400 financial advisors on behalf of Nationwide from July 11th – July 26th, 2024. 

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.

More than half (56%) of Gen X investors currently provide financial support to their parents or children, according to Nationwide’s tenth annual Advisor Authority study, powered by the Nationwide Retirement Institute. Among them, more than one in five (21%) report taking on large levels of debt to manage this responsibility. To meet these financial commitments, a quarter (24%) of Gen X investors are taking on credit card debt, while more than a third (35%) are reducing nonessential expenses.

The financial responsibility of supporting both parents and children is also taking a toll on Gen X investors’ retirement savings. One in five (20%) report being unable to save for retirement, while 23% have reduced or halted retirement savings due to supporting their children and/or parents. What’s more, 16% have tapped into retirement accounts or investments to manage these financial pressures.

Beyond family responsibilities, broader economic factors are also compounding retirement challenges for Gen X investors. One in four (26%) non-retired Gen X investors feel they will retire later than planned because of inflation with more than two in five (44%) expecting to retire at age 66 or later. This prediction stands in contrast to a recent EBRI study¹ showing a median retirement age of 62.

With retirement obstacles mounting, many Gen X investors feel like they have a long way to go to reach retirement readiness. One in five (20%) believe they would need $2 million or more in retirement savings to feel comfortable about their financial future. However, only 7% report saving that amount, and just 16% report having half that amount saved ($1M). Alarmingly, three in ten (30%) report having less than $100,000 saved for retirement.

"Gen X investors have shouldered the impact of major economic events, from the dot-com crash in 2000 to the Great Recession in 2008, while also entering the workforce just as pensions were being phased out, leaving them responsible for building their own retirement savings," said Craig Hawley, president of Nationwide Annuity. "Though these experiences have built resilience, many now face the added financial strain of supporting both aging parents and children. For those Gen Xers struggling financially, it’s not too late to get back on track—with the right long-term plan developed alongside a trusted financial professional."

Despite pessimism, Gen X embrace pragmatism
Having weathered significant economic events during their careers, Gen X investors are less optimistic about their financial outlook but taking proactive steps to prepare for potential near-term volatility.

Compared to other generations, Gen X is the least optimistic about their financial outlook over the next year (36%), outpacing Gen Z (40%), Baby Boomers (45%) and Millennials (49%).

Even so, this group is taking steps to manage short-term disruptions. Six in ten (60%) pre-retiree (aged 55-59) Gen X investors have adjusted their portfolios in response to high inflation, and 67% report having sufficient savings to survive a potential recession in the next 12 months. Despite these efforts, one in ten (10%) say they struggle to afford basic household expenses like groceries and utilities.

“While it’s understandable that Gen X investors are less optimistic about their financial outlook, their life experience has also made them more pragmatic,” said Hawley. “A big challenge for the Sandwich Generation is that they often put the needs of their loved ones above their own, leaving them in a potentially precarious financial situation that can have long-term implications. It’s encouraging to see some are taking action to address these challenges.”

Gen X investors are increasingly turning to experts for financial guidance, with nearly four in ten (37%) currently paying for advisor services, up from 29% just six months ago. Additionally, 21% believe a financial professional helps them stay focused on long-term goals, and 32% of Gen X investors with an advisor frequently discuss retirement readiness.

Advisors confident in understanding Gen X needs
Financial professionals feel attuned to the unique challenges faced by their Gen X clients, developing strategies to enable a comfortable retirement. Nearly nine in ten (88%) advisors report their clients financially support aging parents or children, with 55% managing and paying caregiving costs.

Furthermore, six in ten (60%) advisors say their clients plan to continue supporting family members in retirement, with 35% balancing costs for both children and aging parents.

To address these mounting commitments, advisors are providing tailored tools and strategies for managing family-related expenses in retirement. Over four in ten (42%) of advisors whose clients support their children and/or aging parents are utilizing tax deductions and credits to help manage the financial pressures of familial expenses in retirement, while 36% suggest long-term care insurance for aging parents. Nearly the same share (35%) are helping clients prioritize retirement savings over other expenses, often using retirement investment vehicles like annuities (82%) to safeguard assets from market risks.

"Gen X investors are at an age where the financial decisions they make can carry massive implications for their retirement security,” said Hawley. “Financial professionals can help this group create a holistic plan for addressing factors like long-term care, taxes and income in retirement. Good advisors can identify gaps and create plans to help clients address them before it’s too late.”

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.

¹ EBRI 2024 Retirement Confidence Survey

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 2,496 investors ages 18+ with investable assets (IA) of $10K+, August 26-September 13, 2024. Among the investors, there were 319 Gen Z (18-27), 724 Millennials (28-43), 635 Gen X (44-59), and 741 Baby Boomers (60-78).

Respondents for this survey were selected from among those who have agreed to participate in our surveys.   The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within + 4.0 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. The sample data for the subset of pre-retiree investors age 55-65 who are not retired is accurate to within + 6.7 percentage points using a 95% confidence level. 

For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Kristen Vasas-Samson.

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 a new survey from Nationwide, one in five are unable to save for retirement, and 23% have reduced or stopped making retirement contributions entirely. What’s more, one in six are withdrawing from retirement accounts or investments to manage the financial pressures of caring for both their parents and children.

Today’s turbulent economy is weighing heavy on these investors, causing them to feel like they are fighting an uphill battle when it comes to meeting their financial goals for retirement. More than a quarter (26%) feel they will retire later than planned because of inflation and 20% believe they will need at least $2 million in savings to feel comfortable in retirement. However, only 7% report saving that amount, and just 16% have half that amount saved. Alarmingly, 30% said they have less than $100,000.

"Gen X investors are carrying the weight of having lived through multiple economic events, from the dot-com bubble crash of 2000 to the 2008 Great Recession. Many of them entered the workforce just as pensions were being phased out, leaving them responsible for building their own retirement savings,” said Craig Hawley, president of Nationwide Annuity. “While navigating these events has made them resilient, now they are supporting both aging parents and children, adding even more financial pressure. For many Gen Xers who report they are struggling financially, it’s not too late to get back on track – and one of the best ways to do that is to build a long-term plan in partnership with a trusted financial professional.”    

Gen X investors believe the most important benefit of working with a financial professional is helping them stay focused on long-term goals, according to Nationwide’s survey. While they may be pessimistic about their financial outlook, some are taking proactive, pragmatic steps to prepare, with 60% adjusting their portfolios in response to high inflation and 33% reducing nonessential expenses like vacations and shopping sprees to save more for retirement.

Financial professionals are also attuned to their Gen X clients’ unique financial situations and are developing targeted strategies to help them achieve a stable retirement. According to Nationwide’s survey, advisors are helping Gen Xers find tax deductions and credits, evaluate long-term care insurance for aging parents and prioritize retirement savings over other expenses. Many are also turning to retirement investment vehicles like annuities, with 82% using them to help protect their clients’ assets from market risks.

"Gen X investors are at an age where the financial decisions they make can carry massive implications for their retirement security,” said Hawley. “Partnering with a good financial professional can help them plan for factors like long-term care, taxes and income in retirement, identifying gaps and creating plans to help address them before it’s too late.”

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

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11/2024

This year marks a historic milestone: More Americans will turn 65 than ever before, with roughly 12,000 people a day reaching the age most target for retirement. While many of these individuals aged 60-65 are confidently stepping into retirement, others have valuable lessons to share on avoiding common pitfalls.

Advice to younger selves

When asked what advice they would give their younger selves about planning for long-term care needs, individuals aged 60-65 highlighted three key pieces of wisdom related to planning for long-term care expenses:

1. Start saving financially earlier (53%): More than half emphasized the importance of beginning to save for long-term care earlier. Starting early can significantly ease the burden later in life.
2. Start planning earlier (32%): Nearly a third stressed that alongside saving, early planning is important. This involves understanding potential long-term care needs and exploring options well in advance.
3. Do not assume you will always be healthy enough to be approved for coverage (27%): More than a quarter cautioned against the assumption that you will always be healthy enough to be approved for long-term care insurance coverage. Life is unpredictable, and preparing for all possibilities is essential.

Other notable advice included: not assuming you will never need long-term care (25%), purchasing long-term care insurance (20%), and working with a financial professional to create a plan for long-term care costs (19%).

Concerns about long-term care

The survey also revealed significant concerns among respondents regarding long-term care:

• Becoming a burden (47%): Nearly half express worry about becoming a burden to their families as they get older.
• Desire to compensate family caregivers (37%): Many would like to compensate family members who provide long-term care, recognizing the financial toll caregiving can take.
• Concerns about paying for care (26%): A significant portion is concerned about their ability to pay for long-term care for themselves or their partner.
• Impact on children’s inheritance (25%): Some worry that paying for long-term care will diminish the inheritance they can leave for their children.

The importance of early planning

These insights underscore the importance of early and proactive planning for long-term care. By starting to save and plan early, discussing needs with family, and considering long-term care insurance, individuals can better prepare for the future and alleviate potential burdens on their loved ones.

“The wisdom shared by those nearing retirement is invaluable,” said Holly Snyder, president of Nationwide’s life insurance business. “Their experiences remind us that it is never too early to start planning for long-term care. By taking action now, we can help mitigate future challenges and provide greater security for our families.”

While financial professionals are key and can support retirement savers in creating a robust plan for their long-term care needs, the first step is talking about long-term care with their family.

“Thanksgiving is an ideal time to have these important conversations with family,” Snyder noted. “Gathering together provides a natural opportunity to discuss long-term care planning and ensure everyone is on the same page about future needs and wishes.”

Methodology

The research was conducted online in the United States by The Harris Poll on behalf of Nationwide among 1,334 adults ages 28+ with household income of $75K+ -- including 263 aged 60 to 65. The survey was conducted March 12 – April 2, 2024.

Data are weighted where necessary by age by gender, race/ethnicity, region, education, marital status, household size, household income, and political party affiliation to bring them in line with their actual proportions in the population. Respondents for this survey were selected from among those who have agreed to participate in 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 +/- 3.8 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

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.

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 ± 3.2 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

About Nationwide

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

For more information, visit www.nationwide.com.

A majority (55%) of investors believe the results of the 2024 U.S. federal (presidential and congressional) elections will have a bigger impact on their retirement plans and portfolio than market performance – up 10 percentage points from just a year ago, according to Nationwide’s 10th annual Advisor Authority study, powered by the Nationwide Retirement Institute®.

In anticipation of the election results, investors are bracing for adverse outcomes if their preferred candidates fail to win the White House and Congress. If the political party they least align with gains more power in the 2024 federal elections, one-third of investors (34%) believe the economy will plunge into a recession within 12 months. However, Nationwide’s Office of Economics believes a recession in the near-term is unlikely unless there is a significant unforeseen event.

With regard to specific economic concerns related to the party they least align with winning the election, half of investors (50%) believe the cost of living will rise, while 1 in 3 believe their taxes will increase within 12 months of the election (34%) or that economic policy will be enacted that will negatively impact their financial future (33%).

Investors are also preparing their portfolios and retirement plans. More than a quarter (26%) of non-retired investors plan to invest more conservatively in anticipation of this year’s election, and 18% plan to increase diversification of retirement solutions within their portfolios.

“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. That’s why it’s important for investors to stay focused on long-term strategies by working with a trusted advisor to avoid making short-sighted, emotional decisions based on near-term political shifts.”

Market Concerns Elevated as Election Day Approaches
Just weeks away from Election Day 2024, investors report the same top financial concerns as they did when polled about the election last fall. More than half of investors (54%) say inflation is a top financial concern leading up to the 2024 elections, down from 61% in 2023. Fears of an economic recession (34%, down from 41% last year) and taxes (30%, up from 26% last year) are also top of mind for investors.

“Our current forecasts show that while the economy is likely to cool somewhat over the next six-to-12 months, a recession is unlikely unless there is a significant unforeseen event. Presidential campaigns often portray their candidates and plans as the primary factors that will impact the economy, but retirement savers should keep in mind that in most cases, the eventual winner has a limited ability to effect significant change – positive or negative – on their own,” said Nationwide Chief Economist Kathy Bostjancic. “Historically, the Federal Reserve has a much greater impact on the economy in the short- and medium-term than does a president, especially if the winner is constrained by Congress.”

The potential impacts of this year’s election continue to be a concern for investors, with six in 10 (61%) believing the outcome of a presidential election has a direct, immediate and lasting impact on the performance of the stock market, about the same as 2023 (60%). Investors are most concerned with the election’s impact on market volatility (77%), their personal finances (71%) and investment portfolio performance (69%).

Voters Divided on Key Campaign Issues
Across party lines, voters cite the same key threats to their retirement prospects. Both non-retired Democrat and Republican investors see inflation (47% and 57%, respectively) and economic recession (34% and 37%, respectively) as the most immediate threats to their retirement portfolios over the next 12 months.

Overall sentiment differs across party lines. While a majority (55%) of Democrats have an optimistic financial outlook for the year ahead, just over 1 in 3 Republicans (37%) and independents (37%) feel the same.

Democrats are slightly more concerned about unexpected or emergency expenses (21% vs. 16%) and outpace Republicans with concerns about the rising cost of living forcing retirement savings withdrawals (23% vs. 16%). Republicans (84%) are more concerned than Democrats (67%) about the prospect of a U.S. economic recession in the next 12 months.  

The top investment strategy selected by Democrats (22%), Republicans (26%) and independents (23%) is a shift to a more conservative approach in anticipation of the election.

Advisors Mirror Investor Concerns, Provide Support
Despite differences in key concerns ahead of this year’s election, investors across the political spectrum agree on the benefits of working with a financial advisor: Democrats (63%), Republicans (59%) and independents (58%) say that working with a financial advisor during an election year helps them feel more secure, regardless of who is elected.

Financial advisors share their clients’ concerns, especially in terms of their 12-month outlook. Roughly two-fifths of advisors believe inflation (42%) and market volatility (38%) pose the two most immediate challenges to their clients’ retirement portfolios over the next 12 months.

To proactively meet those concerns, advisors are implementing more comprehensive solutions into their clients’ retirement portfolios. Advisors are counselling their clients to take capital gains early in case tax laws change (31%) and to take Social Security benefits later (29%). Nearly a third (32%) also plan to increase diversity of retirement solutions within their clients’ portfolios in anticipation of this year’s elections.

This turbulent moment is inspiring advisors to adjust their recommended retirement solutions. Compared to a year ago, advisors are increasingly using solutions like annuities to protect clients’ assets against market risks. More than half (55%) are incorporating Fixed Index Annuities (FIAs), up slightly from 50% last year. Additionally, 47% of advisors are incorporating Registered Index-Linked Annuities (RILAs), up from 39%.

“The run up to this year’s election has been filled with plenty of noise and we expect to see that continue for weeks after the election is over, so advisors should reinforce the importance of their clients sticking to their long-term plans,” Jestice said. “Advisors can use this time to revisit solutions that perform well amidst market volatility, like annuities, as a way to help calm investor anxiety and position them for guaranteed income in retirement – regardless of election results.”

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

Nationwide’s 10th 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 2,496 investors ages 18+ with investable assets (IA) of $10K+, August 26-September 13, 2024.

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within + 4.0 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. The sample data for the subset of pre-retiree investors age 55-65 who are not retired is accurate to within + 6.7 percentage points using a 95% confidence level. 

For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Kristen Vasas-Samson.

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 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
NFM-24362AO
10/2024

As Americans’ fears about the long-term solvency of Medicare grow, many want meaningful reforms. When thinking about the 2024 U.S. Presidential election, more than two in five (42%) said the top health care priority for the next administration to address should be ensuring Medicare's stability, just behind lowering out-of-pocket health care costs (43%) and lowering prescription drug prices (43%). Notably, these reforms have some bipartisan support for the next administration to address with 47% of Democrats and 43% of Republicans prioritizing Medicare’s stability, and 47% of Democrats and 44% of Republicans wanting lower prescription drug prices to be addressed.

“Concerns about the future of Medicare are adding another layer of uncertainty for Americans as they consider how they’ll manage health care costs in retirement,” said Kristi Martin Rodriguez, senior vice president of the Nationwide Retirement Institute. “With high living costs already squeezing household budgets, many are worried about having enough saved to cover their long-term health care. Given the current pressures and potential for future health care cost increases, it is never too early to begin planning for health care expenses in retirement.”

The survey found that high costs remain a major barrier for many Americans trying to build a solid financial safety net, with rising health care expenses exacerbating their concerns and financial stress. For example:

• 67% worry a single large health care issue could ruin their finances for years to come
• 49% said medical and health expenses have drastically reduced how much they saved/will be able to save for retirement
• 44% could not pay off an unexpected $5K health care out-of-pocket expense
• 25% have canceled in the past 12 months or are considering cancelling/postponing getting an annual physical this year due to high inflation

AI in health care: Streamlining costs and increasing life spans
Artificial intelligence offers promising solutions, potentially making health care more affordable while transforming the industry. By automating routine tasks and enhancing diagnostic accuracy, AI has the potential to improve patient outcomes and streamline care delivery. Many Americans share this optimism, with 53% expecting AI to enhance the quality of health care, 45% believing it will discover cures for chronic conditions that they may develop in the future, and 33% believing that AI could extend their life expectancy. Those who expect AI will add to their lifespans expect it will add approximately 10 years on average.

Although this progress is encouraging, it also suggests retirees might bear health care costs for more years. This has led to concerns for 62% of Americans who worry about living for a long-time and running out of money in retirement.

To prepare for this possibility, some Americans (18%) say they plan to update their retirement plans to accommodate for longer lifespans, but far too many may be unprepared for managing higher health expenses that could come with longer retirements.

Seeking help from a financial professional is key
The survey found that two-thirds (66%) currently do not work with a paid financial professional even though many Americans have clear knowledge gaps when it comes to paying for health care in retirement. For example, 54% are unable to estimate how much their annual health care costs would be/are in retirement and one-third (34%) admit they do not know how Medicare works to cover medical costs in retirement.

Despite these knowledge gaps, Americans overwhelmingly want expert guidance.

A majority (83%) say managing health care costs should be part of personal financial planning, with over a third (37%) strongly agreeing. Yet more than half (57%) report that their financial professional has not provided advice on how and when to file for Medicare benefits.

“Now more than ever, seeking guidance from financial professionals is essential,” added Rodriguez. “Advisors should proactively address health care costs, from Medicare to AI’s potential impact on life expectancies, to help ensure their clients' savings last as long as they will need to. A well-informed plan is key to securing financial futures.”

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 2024 Nationwide Retirement Institute Health Care Costs in Retirement consumer survey, visit www.nationwide.com/healthcarecosts. In addition, financial professionals can visit www.nationwide.com/simplifyhealthcarecosts to learn more.

View an infographic and blog post for more on this data.

Nationwide, widely recognized as a leading personal lines property and casualty insurance company, offers so much more than just great home and auto insurance. The company has evolved into a financial services powerhouse, providing a wide range of retirement and investment solutions to help Americans protect their financial futures, along with offering financial solutions for businesses.

Nationwide continues to lead the way with its diverse range of financial solutions and thought leadership, ranking No.1 in 457(b) retirement plans, company-owned life insurance and universal life. Nationwide also ranks in the top ten for linked benefit long-term care insurance, traditional variable annuities and fixed indexed annuities, with forty-eight 4- or 5-star Morningstar rated mutual funds¹. Nationwide has established itself as a leader and innovative thinker in the industry with its suite of Protected Retirement solutions designed to help defined contribution plan participants convert their savings into lifetime income. Nationwide is also the nation’s No. 1 agribusiness insurer, a leader in excess & surplus lines and standard business insurance, and a top pet insurer. Founded to protect and built on trust, Nationwide has spent nearly 100 years safeguarding what people value most: their families, businesses, and futures.

Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey among 1,692 adults age 18+ residing in the U.S. The survey was conducted July 9-31, 2024.

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 ± 3.2 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

After months of strong stock market gains, the survey found that this improvement is largely due to the active engagement of employees in managing their retirement accounts. Most workers (76%) check their balances at least once a month and 3 in 10modify their contributions or rebalance their investments monthly.

In addition to growing optimism around their retirement finances, employees increasingly think about their retirement savings in terms of the monthly income it will provide in retirement (59%) rather than a total savings balance (26%). They are also embracing new solutions to create steady income in retirement. Nearly two in five (37%) of employees 45 or older are now aware of guaranteed income options within 401(k) plans, a significant 20-point increase since 2023.

To enhance and maximize their savings, employees are asking for automatic features that simplify retirement planning, reflecting a shift in how people think about retirement savings – from a mere nest egg to a crucial element of financial security in retirement. For example, 73% want their workplace retirement plan to include an automatic way to convert their assets to a stream of income in retirement, a number that rises to 77% for employees aged 45 and older.

“I’m thrilled to see that retirement plan participants are viewing 401(k) plans as so much more than just a savings vehicle by thinking about them as a comprehensive tool to help prepare for and live in retirement.”” said Cathy Marasco, vice president of Protected Retirement solutions at Nationwide. “In this new era, it’s crucial that we meet employees where they are with the right education and solutions to help them achieve financial security in retirement.”

Despite increased optimism, 56% of employees continue to worry about outliving their retirement income and many (61%) find it challenging to determine how long their savings need to last. Inflation and the high cost of living continue to weigh on workers, with 80% of both public and private sector employees expressing significant concern.

Because of this, nearly one in three employees 45 or older (28%) now expect to delay retirement due to insufficient savings.

Lingering Employee Anxieties Highlight Need for Action
These anxieties reveal critical gaps in retirement planning that need to be addressed by employers, employees, and financial professionals.

Employers have a critical role to play in offering employees not only resources and information about retirement planning but more importantly, simple, automated guaranteed income solutions. Failing to meet these needs can lead to more delayed retirements, negatively affecting the organization’s financial performance and the onboarding of new talent. For example, 47% of private sector employers say that delayed retirement makes their health and benefits plans more expensive, 35% say delayed retirement impacts their ability to promote younger talent, and 26% have noticed lower productivity levels.

Employees should actively engage with their employers to understand their financial options and advocate for access to guaranteed income solutions—an investment choice that appeals to two-thirds of workers.

Financial professionals also play a crucial role in educating employers about guaranteed income solutions and making sure that plan participants have access to these useful retirement tools. Most employers are interested in including guaranteed income options in target date funds (85% of private and 91% of public employers) or managed accounts (81% of private and 87% of public employers), representing a significant opportunity for financial professionals to help plan sponsors fill this gap for their employees.

A Call to Action: Securing the Future of Retirement
As retirement planning continues to evolve, it's evident that the future of long-term financial security involves guaranteed income solutions and automatic features within retirement plans. Now is the time for all stakeholders—employers, employees, and financial professionals—to act decisively.

“While education is helpful, survey respondents told us they want solutions that make it easy. We’ve found that automatically enrolling participants and automatically increasing contributions lead to significantly better outcomes for participants,” added Cathy Marasco. “The next opportunity is to enable automatic income in retirement with protected retirement solutions—and that’s not just a nice-to-have. It's a necessity to help ensure that participants can retire with confidence and security. Employers and financial professionals must prioritize these solutions, and participants should actively seek them out to help secure a stable financial future."

More information about Nationwide’s protected retirement solutions:

• For financial professionals
• For plan sponsors

While broadly known as a leading personal lines property and casualty insurance company, Nationwide is so much more than just a great home and auto insurer . The company has quietly grown into a financial services powerhouse with a broad portfolio of solutions to help Americans achieve a secure financial future, as well as financial solutions for businesses. Nationwide is the No.1 writer of 457(b)retirement plans, company-owned life insurance and universal life, with top ten rankings for linked benefit long-term care insurance, traditional variable annuities and fixed indexed annuities¹. Nationwide is a leader in the industry with a suite of Protected Retirement solutions to help defined contribution plan participants convert their savings into lifetime income. The company is also the nation’s No. 1 agribusiness insurer ¹; a leader in excess & surplus lines and standard business insurance as well as a top pet insurer.

Methodology
Edelman Data and Intelligence (DXI) conducted a national online survey of n=500 private plan sponsors, n=100 public plan sponsors, n=2,200 plan participants, n=400 peak retirement plan participants, and n=400 financial advisors on behalf of Nationwide from July 11^th – July 26^th, 2024.  

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. 

A recent Nationwide Annuity survey found that 18% of recent annuity buyers surveyed intentionally sought out or started a new financial professional relationship in order to purchase an annuity. For financial professionals, the fact that roughly a fifth of recent annuity buyers are actively seeking help for the first time reveals not only the importance of an advisor’s role in the process, but a significant sales opportunity in this growing market, according to Rona Guymon, Senior Vice President of Nationwide Annuity Distribution.

“While annuities are not new, most retirement savers are still unfamiliar with them,” said Guymon. “When it comes to securing guaranteed income in retirement, whether it’s someone who is only a few years from retirement or decades away, savers want to be sure they have the best information available. This presents an opportunity for financial professionals to build trust and establish a long-term relationship with new clients.”

Why annuities
As interest rates and stock market volatility increased over the last several years, annuities have become more popular among savers looking to convert their nest-eggs into guaranteed regular payments that will last throughout retirement. Among those responding to the latest Nationwide Annuity survey, 32% said that generating retirement or lifetime income was their prime motivator for purchasing an annuity, followed by principal protection (17%) and tax-deferred growth (13%).

Investors with fewer assets, less confidence   
The survey reinforces the role financial professionals play in the annuity purchasing process, especially for savers who may not be as sophisticated. The survey found annuity buyers who are more likely to begin a new relationship with a financial professional, specifically to buy an annuity include those with fewer assets (26% had less than $250,000 in assets), less confidence in the eventual success of their retirement plans (23% identified as having very little or no confidence) and those who already have a pension (23% indicated they have a pension).

“While it may be a bit counter-intuitive that those with a pension are turning to annuities, this statistic likely speaks to the fact that many pensions provide inadequate benefits, and these individuals realize they need to close the income gap,” Guymon said.

Personalized guidance builds trust
Financial professionals play a critical role in guiding savers through the annuity purchasing process, and it’s no wonder, says Guymon.

“Planning for retirement carries so many expectations and worries with it that trust becomes absolutely crucial,” Guymon said. “Savers need to feel confident they are making prudent moves, and when they feel their financial professional understands their unique needs and offers personalized guidance, they feel better about making these important decisions relating to their retirement security.”

Guymon noted that it’s not always financial planners that savers turn to. According to the survey, 68% of annuity buyers purchased through a financial professional, advisor or planner, while 18% bought through an insurance agent, and 13% bought directly from an annuity provider.

Interestingly, those most likely to have bought directly from an annuity provider are individuals owning multiple types of annuities (20% vs. 5% for those who own only one type) and those who bought their most recent annuity in the past five years (17% vs. 9% for those who bought 6-10 years ago).

The survey also highlights the level of ongoing engagement between annuity buyers and their financial professionals. The majority of annuity buyers (58%) discuss their annuity with their financial professional annually, while 18% engage in discussions more than once per year. Additionally, 12% discuss their annuity every two years, 7% every three or more years, and 5% never discuss their annuity with their financial professional.

“As more Americans adopt annuities, financial professionals have an important opportunity to provide updates on performance, as well as valuable guidance and support,” Guymon said. “This presents a significant opportunity for those in the industry to expand their client base and build lasting relationships.”

To learn more about the annuities Nationwide offers, visit https://financial.nationwide.com/products/annuities?utm_source=NWNewsroom&utm_medium=Newsroom&utm_campaign=NWNewsroom. 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.

About Nationwide’s Annuity Buyer Consumer Survey
The research was conducted online within the U.S. by Nationwide Mutual Insurance Company from February 6-26, 2024, among 300 consumer respondents between ages 50-74. Respondents owned one or more annuities purchased in the past 10 years, evenly split between those who bought in the past five years and those who bought six-to-10 years previously and have not started receiving income from the annuity.

The 2024 survey found that nearly three-quarters (72%) of adults worry the Social Security system will run out of funding in their lifetime. This concern is particularly pronounced among millennials (79%) and Gen Xers (77%), compared to Gen Z (66%) and boomers+ (66%). Alarmingly, almost one in four (23%) believe they will not get a dime of the Social Security benefits they have earned.

"Though Americans’ heightened anxiety around the Social Security program is not surprising, it is now more important than ever for them to have a retirement plan that hedges against the possibility of receiving less in benefits than expected," said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide. “We are in an opportune time for financial professionals to empower their clients to plan for the future and build long-term financial resilience.”

Key reforms supported by Americans
Social Security reform is top of mind for many Americans, as 69% report that a candidate’s stance on the topic will be a major factor in how they vote in the upcoming U.S. presidential election. With that in mind, many are voicing their opinions on ways the system needs to change.

Notable proposed changes that Americans support include raising the minimum eligibility age from 62 to 64 for all future retirees aged 50 or younger (66%) and increasing the full retirement age from 67 to 69 on all future retirees ages 50 or younger (51%). Interestingly, these proposals have bipartisan support with 68% of Democrats and 69% of Republicans backing the first and 50% and 51%, respectively, favoring the second.

Other proposed changes to the Social Security system include:

• Increasing taxes on higher earners to increase funding (47%)
• Decreasing taxation on benefits (40%)
• Increased funding through employer taxes (34%)

Knowledge gaps and the need for education
Despite desiring change in the system, many Americans still do not fully understand how the Social Security system works. In fact, more than half of respondents (51%) admit they do not know exactly how to maximize their Social Security benefits and one-third (33%) are uncertain about the age at which they are or were eligible for full retirement benefits.

Unfortunately, this knowledge gap has grown over the last decade. When this survey was conducted in 2015, 86% of respondents aged 50+ knew that Social Security could offer benefits for their spouse or children, whereas only 74% knew this in 2024. Similarly, 66% of respondents aged 50+ knew that divorced adults may be eligible for Social Security benefits based on their ex-spouse’s record, whereas only 52% answered this correctly in 2024.

Furthermore, two-thirds (66%) of U.S. adults did not know or were unsure that Social Security is protected against inflation, and a mere 4% could identify all five factors that determine the maximum Social Security benefit. This growing knowledge gap highlights the need for better education and resources to help Americans understand how this important element of their retirement plan will contribute to their financial security in the future.

Despite growing concerns, many Americans are not taking action
Although Americans’ widespread concerns about Social Security solvency are apparent, many are not taking proactive steps to secure their financial futures.

Almost half (47%) report that they do not pay to work with a financial professional and do not want one. In addition, 55% of U.S. adults who do not pay to work with a financial professional have no plans to seek advice about Social Security benefits from one. However, the good news is that the majority are open to learning more from a financial professional. For example, when thinking about managing their savings for retirement, three in four (75%) expressed interest in discussing savings or investment options to guarantee specific income levels during their retirement.

"Given Americans’ increasing worries about the future of Social Security, it is concerning to see that many have yet to take proactive steps to secure their retirement," added Ambrozy. "Seeking guidance from a financial professional can make a significant difference in maximizing Social Security benefits and ensuring financial stability in retirement. We encourage everyone to take action now to better understand their options and safeguard their financial futures."

Nationwide offers a variety of resources to help. The Nationwide Social Security 360 Analyzer® can help financial professionals assess a client’s goals to better advise on the optimal time to claim Social Security. To learn how to optimize Social Security benefits, visit www.Nationwide.com/SocialSecurity. Financial professionals can visit www.NationwideFinancial.com/SocialSecurity.

Methodology
The research was conducted online in the U.S. by The Harris Poll on behalf of Nationwide among 1,831 adults age 18+ who currently receive or expect to receive Social Security (“national sample”), including 313 Gen Z (age 18-27), 506 millennials (age 28-43), 506 Gen Xers (age 44-59), and 506 boomers+ (age 60+).  The survey was conducted April 19-May 13, 2024.

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 21^st century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advice to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.

According to a new survey by the Nationwide Retirement Institute^®, retired investors are reprioritizing their non-essential expenses to make ends meet in the wake of economic constraints. Nearly four in ten (39%) are spending less on entertainment to meet financial commitments in today’s economic environment, and more than a third (34%) are taking fewer trips or vacations.

Additionally, long-term debt is also continuing to weigh on retirees, with 26% of retired investors continuing to pay off their mortgage, and 25% still paying down credit card debt. With everyday financial obligations remaining a concern for retirees, many expect to be less secure in their retirement than their parents and grandparents were, according to Nationwide’s survey.

“The picture of life after retirement has changed for many people as economic stressors continue to weigh on retired investors, but that doesn’t mean retirees can’t enjoy a quality life in retirement,” said Mike Morrone, Vice President of Nationwide Annuity Business Development. “If you don’t already have one, turn to an advisor or financial professional to build or update your long-term strategy, helping you protect your assets and achieve financial security.”

According to Nationwide’s survey, over one-third (37%) of retired investors don’t have a strategy in place to protect their assets against market risk. By working with an advisor to use solutions like annuities, which can help protect against outliving savings, retirees can have confidence in their financial stability, which may make it easier to consider doing the things they enjoy in retirement, Morrone said.

Financial advisors can also help retirees increase their financial knowledge and think about what they want to happen with their assets at the end of their life. More than half (59%) of advisors say their clients are confirming beneficiary designations to prepare their heirs for the transfer and management of wealth, with another 54% saying their clients are reviewing or creating estate planning documents – planning needs that will help retirees prepare for the Great Wealth Transfer. Additionally, 44% of advisors said they are working with their clients to build financial confidence and knowledge, helping them feel more positive about their choices in retirement.

“Advisors recognize and acknowledge retirees’ desire to avoid making the wrong moves in retirement,” Morrone said. “They can help you feel more confident about your retirement plans by working with you to understand your goals and anxieties, and help you protect your savings and plan for income you won’t outlive.”

For help finding a financial professional, visit https://www.nationwide.com/personal/investing/find-financial-professional/.

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 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 © 2024 Nationwide.
NFM-24059AO
07/2024

Nearly one-third (31%) of retirees expect to be less secure in their retirement than their parents and grandparents were, according to Nationwide’s ninth annual Advisor Authority study, powered by the Nationwide Retirement Institute^®.

This feeling of uncertainty among retirees is compounded by the fact that everyday financial obligations remain a concern – more than one in five (22%) retired investors worry about affording their monthly bills.

Retirees Reevaluate Financial Commitments
The transition to life after retirement demands crucial shifts, including the prioritization of financial commitments. In addition to short-term financial obligations like basic living expenses, long-term debt continues to weigh on retirees, with 26% of retired investors continuing to pay off their mortgage, and 25% still paying down credit card debt.

While most American savers dream of a retirement of leisure and travel, retired investors are adjusting their priorities to make ends meet in the wake of economic constraints. Nearly four in ten (39%) retired investors are spending less on entertainment to meet financial commitments in today’s economic environment, and more than a third (34%) are taking fewer trips or vacations.

To compensate further, 22% of retired investors are drawing more funds from retirement accounts, intensifying the traditional decumulation stage.

“The picture of life after retirement has changed for many people as economic stressors continue to weigh on retired investors,” said Mike Morrone, Vice President of Nationwide Annuity Business Development. “Now is the time for advisors and financial professionals to check in with their clients and help them remain calm, nimble and informed in the face of continued economic headwinds, ensuring the plan they have in place continues to position them for a secure retirement.”

Strategies Vary for Investors Already in Retirement
To account for financial headwinds, retirees are bolstering their plans. Nearly two in three (63%) retired investors have a strategy in place to protect their assets against market risk, up from 54% last summer.

However, these retirement plans look radically different from the plans of generations past. Some retirees (12%) are abandoning the 70-80% spending rule (i.e., ensuring they have 70-80% of their pre-retirement income per year in retirement) and 11% are casting aside the 4% rule (i.e., withdrawing 4% of their retirement portfolio each year when retired).

Retired investors are also initiating conversations about legacy planning and wealth transfer with their heirs. Nearly a third (32%) of retirees are discussing wishes for end of life (long-term care expenses, funeral preferences, etc.), and 34% are discussing financial details of their estate with heirs.

Financial Advisors Guide Clients Toward Retirement Security
Advisors are supplying their clients with the guidance needed to help achieve financial security in retirement, counseling their retired clients on how to generate guaranteed income (23%), prioritizing wants vs. needs (21%) and supplementing income out of necessity (16%).    

Advisors are also helping investors plan for lingering financial commitments, such as mortgage repayments, which more than a third (34%) of advisors say their clients are planning to continue paying in retirement.

With the Great Wealth Transfer underway, advisors are helping clients – and their heirs – prepare. More than half (59%) of advisors say their clients are confirming beneficiary designations to prepare their heirs for the transfer and management of wealth. Another 54% say their clients are reviewing or creating estate planning documents, and 44% are building financial confidence and knowledge.

“Advisors are recognizing and acknowledging investors’ desire to avoid making the wrong moves in retirement,” Morrone said. “They can help clients feel more confident about their retirement plans by understanding their goals and anxieties, and helping them protect their savings and plan for income they won’t outlive by reinforcing the value of different retirement solutions and products, like annuities.”

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

Nationwide’s ninth 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 research was conducted online within the U.S. by The Harris Poll on behalf of Nationwide from January 8-23, 2024, among 518 advisors and financial professionals and 2,346 investors ages 18+ with investable assets (IA) of $10K+. Investors included a subset of 391 “pre-retirees” age 55-65 who are not retired, and subsets of 346 single women and 726 married women.

Weighting: Raw data from advisors were not weighted and are therefore only representative of the individuals who completed the survey. Investor data are weighted where necessary by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets, and propensity to be online to bring them in line with their actual proportions in the population.  To ensure the investor sample was representative, the data were initially weighted separately for those with investable assets of $10K to less than $100K and those with $100K+ and then post-weighted/combined into a total investor group. Data for the subset of pre-retirees age 55-65 who are not retired were weighted separately as needed by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income and investable assets.   

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 + 2.8 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 subset of pre-retirees age 55-65 who are not retired is accurate to within + 6.2 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 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 majority of small business owners (72%) and mid-market business owners (51%) rate the current condition of the U.S. economy overall as 'poor' or 'fair,' with inflation topping their list of concerns at 61%. Following closely behind are worries about the upcoming U.S. presidential election (49%), high interest rates (49%), and supply chain disruptions (40%).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

View an infographic summarizing survey data

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

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With annuity demand expected to shatter records again this year, financial professionals should be prepared to discuss annuity options with their clients – especially as a recent survey from Nationwide Annuity shows they play an important role in helping investors feel confident in their annuity purchase. According to the survey of 300 annuity owners, 82% said the opinion of their financial professional made them feel more positive about their decision to buy an annuity, followed by the performance of the annuity itself (76%), market performance (70%) and interest rate changes (67%).

Additionally, the survey found investors are turning to annuities for a more secure future in retirement. 67% of investors said their top motivation for purchasing their annuity was funding their retirement, and 41% said they did so to generate a ‘personal pension’ that could provide a reliable income stream, in many cases, for life.

“More than any other source out there, investors trust their financial professional to guide them toward the right solution to ensure a protected retirement, which is why it’s so important for advisors to ensure their clients have a good understanding of how different vehicles perform in different environments,” said Rona Guymon, Senior Vice President of Nationwide Annuity Distribution. “As we mark National Annuity Awareness Month (NAAM) this June, financial professionals should seize this opportunity to engage with their clients to reinforce the value of different retirement solutions and products, including annuities, as part of a robust plan that helps them protect investments, enable growth and guarantee they won’t outlive their income.”

Annuity education driven by financial professionals increases investor satisfaction
In addition to the performance of the market and product, investors feel more confident about their purchase when they understand the complexities of annuity solutions – especially when that education comes from their financial professional.

While over 90% of investors said they were confident their annuity purchase was the right decision, having annuity knowledge made them feel even more confident (54%), compared to those who felt less knowledgeable (36%). Investors’ understanding of the annuity they purchased also varied depending on which product they bought, with investors owning registered index-linked annuities (RILAs) having the highest product comprehension (94%) of all annuity buyers, followed by those who own a fixed annuity (85%), fixed index annuity (78%) and variable annuity (70%).

“Annuity education materials and product knowledge can be provided by financial professionals as a means to engage customers,” Guymon said. “There is no real substitute for a trusted and qualified financial professional who can help clients anticipate and plan for future challenges and tailor portfolios for specific needs.”

While financial professionals are investors’ main source of annuity information (84%), 48% are also turning to websites, blogs and online articles to learn more. However, they are struggling to find high quality and neutral online information about annuities, in addition to finding the product confusing when researching on their own. More than two-thirds (69%) of investors said annuity information available online tends to be very basic and lacking detail, and 65% said annuities are harder to research online than other investment topics.

“To help investors feel more confident about their annuity purchase, financial professionals have an opportunity to tailor the product knowledge they offer their clients based on their unique needs, financial acumen and the type of annuity they own or are considering,” Guymon said. “The Nationwide Retirement Institute offers advisors access to planning tools and consultative support that can help break down topics like annuities to help them prepare their clients for their financial future.”

About Nationwide’s Annuity Buyer Consumer Survey
The research was conducted online within the U.S. by Nationwide Mutual Insurance Company from February 6-26, 2024, among 300 consumer respondents between ages 50-74. Respondents owned one or more annuities purchased in the past 10 years, evenly split between those who bought in the past 5 years and those who bought 6 to 10 years previously and have not started receiving income from the annuity.

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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“While it’s good to have a goal in mind, it’s more important to focus on a holistic approach to income planning instead of trying to hit a single number,” said Rona Guymon, senior vice president of Nationwide Annuity Distribution. “In fact, according to Nationwide’s survey, only 38% of investors believe in having a magic number target in place. Since everyone’s magic number is different, rather than trying to match someone else’s target, your best bet is to work with an advisor to plan for retirement goals that fit your needs.”

Today’s turbulent economy is impacting more than just how much investors feel they need to save. According to Nationwide’s survey, nearly half (49%) of investors have delayed, altered or cancelled their dreams for retirement due to economic conditions seen in the last five years, and one-third (33%) are worried about paying monthly bills in retirement.

Focusing on what you can control and partnering with an advisor to establish or revisit your long-term plan are two of the most immediate steps investors can take to feel more confident about reaching retirement, Guymon said.

“Working with an advisor to plan for your own unique circumstances – like where you live, your lifestyle preferences and your healthcare expectations – is going to be key in planning for and meeting expenses you might have in retirement,” Guymon said. “Advisors can help review financial and investment strategies, as well as diversify your investment portfolio to help plan for steady income in retirement and guard against market volatility.”

With the rising cost of living causing investors to rethink or redefine their retirement planning strategies, advisors are seeing their clients use more non-traditional approaches to meet financial commitments that may lead to adverse outcomes, Guymon said. More than a third (34%) of advisors said their clients are drawing more funds from their retirement accounts, and an additional 23% said their clients are liquidating assets.

However, advisors have solutions that can help. According to Nationwide’s survey, annuities, diversification, non-correlated assets and liquid alternatives, such as mutual bonds or exchange-traded funds, are all strategies advisors recommend to help protect your assets against market risk.

While there is often a cost associated with working with a financial professional or advisor, Guymon stressed that the cost of not planning holistically for retirement can be much more damaging to your long-term financial future.

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.

Investing involves market risk, including possible loss of principal. No investment strategy or program can guarantee a profit or avoid loss.

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05/2024

According to Nationwide’s ninth annual Advisor Authority survey, powered by the Nationwide Retirement Institute^®, more than 6 in 10 (61%) investors say their expectations for retirement have changed significantly in the last five years, and nearly half say their dreams for retirement have been delayed, altered or cancelled as a result of the economic conditions seen in the last five years.

In the face of these headwinds, just 38% of investors believe in having a retirement savings target, or a specific savings goal for retirement. For those that do have a figure in mind, 42% of investors believe they need between $1 million and $2 million to retire, while 18% believe they need more than $2 million saved to comfortably retire.

“Americans believe they will need over $1 million to retire comfortably – a figure that could be discouraging for even the most committed retirement savers,” said Rona Guymon, Senior Vice President of Nationwide Annuity Distribution. “What’s important to remember is that everyone’s ‘magic number’ in retirement will vary depending on a number of variables including spending habits, health, debt levels, location and more. It’s good to have a goal in mind, but holistic financial planning with an advisor is more likely to lead to a comfortable retirement. At the end of the day, a magic number doesn’t tell you much about how long your income will last over an uncertain amount of time in retirement. That’s where holistic financial planning can make all the difference in the world to address the anxiety of a nervous investor.”

This lack of a ‘magic number’ and anxiety about an uncertain financial future is causing concern about affording necessary items in retirement. Investors age 55+ or currently in retirement are most worried about paying for basic living expenses (83%), medication and other health-related items (58%) and supplemental health insurance (39%) in retirement. To meet these financial commitments, this same cohort is foregoing big and small pleasures today, spending less on luxury goods (47%), leisure (44%), entertainment (44%) and vacations/trips (38%).

External Factors Sway Retirement Optimism
For many investors, the uncertain economic landscape presents an ongoing challenge to retirement planning. Three in 4 investors are concerned about a US economic recession in 2024, including 81% of those farthest from retirement (non-retired 18- to 54-year-olds).

As a result, nearly 1 in 3 (31%) non-retired investors believe an economic recession poses the most immediate challenge to their retirement portfolio over the next 12 months, and over half (53%) of non-retired investors expect interest rates to be increased 12 months from now.

These factors are forcing investors to consider a difficult reality — that the concept of an accessible and absolute retirement is no longer a realistic post-career possibility. More than a quarter (27%) of all non-retired investors would likely be forced to return to the workforce at some point due to inadequate savings if they retired in the next 12 months, and 1 in 5 (19%) non-retired investors are unsure if they will ever retire. What’s more, an additional 19% claim that they will retire later than planned because of inflation.

“While it’s understandable that the turbulent markets we’ve seen over the last few years have investors on edge, we no longer expect a recession in 2024 and still predict rate cuts will occur later this year,” said Mark Hackett, Chief of Investment Research at Nationwide Financial. “It’s important for investors to focus on what they can control in today’s economic environment, and one way they can do that is by working with their advisor or financial professional to establish or revisit their long-term plan to ensure it remains aligned with their retirement goals.”

Financial advisors identify with their clients’ concerns
As investor concerns proliferate, financial advisors are providing strategic solutions to help ensure a stable retirement for clients. Nearly half of advisors (48%) say the rising cost of living has influenced their clients to rethink or redefine their retirement planning strategies.

In addition, advisors say their clients are taking non-traditional, or in some cases, approaches that may lead to adverse outcomes to meet financial commitments in retirement. More than a third (34%) of advisors say their clients are drawing more funds from their retirement accounts to meet financial commitments. Nearly 1 in 4 (23%) financial advisors say their clients are liquidating assets, and 16% say their clients are moving in with adult children.

Financial advisors believe these adjustments are significantly changing their clients’ perceptions of retirement. Nearly half (47%) of advisors say working in retirement is one strategy their clients are using that would be considered radically different from that of their parents or grandparents. To help these clients protect their assets against market risk, advisors are using annuities (79%), diversification and non-correlated assets (77%) and liquid alternatives, such as mutual bonds or ETFs (58%).

“It’s clear that having a trusted advisor makes a difference when it comes to feeling confident about living comfortably in retirement,” Guymon said. “Advisors and financial professionals should seize this opportunity to engage with their clients to reinforce the importance of sticking to their long-term plan. Another way to address client anxiety around retirement goals is to help them understand the value of protection solutions, like annuities, which can guarantee income in retirement and guard against market volatility.”

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

Nationwide’s ninth 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 research was conducted online within the U.S. by The Harris Poll on behalf of Nationwide from January 8-23, 2024, among 518 advisors and financial professionals and 2,346 investors ages 18+ with investable assets (IA) of $10K+. Investors included a subset of 391 “pre-retirees” age 55-65 who are not retired, and subsets of 346 single women and 726 married women.

Weighting: Raw data from advisors were not weighted and are therefore only representative of the individuals who completed the survey. Investor data are weighted where necessary by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets, and propensity to be online to bring them in line with their actual proportions in the population.  To ensure the investor sample was representative, the data were initially weighted separately for those with investable assets of $10K to less than $100K and those with $100K+ and then post-weighted/combined into a total investor group. Data for the subset of pre-retirees age 55-65 who are not retired were weighted separately as needed by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets and propensity to be online. 

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 + 2.8 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 subset of pre-retirees age 55-65 who are not retired is accurate to within + 6.2 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 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 majority of pre-retiree investors (69%), defined as non-retired investors aged 55-65, agree that the norm of retiring at 65 doesn’t apply to them, according to Nationwide’s ninth annual Advisor Authority survey, powered by the Nationwide Retirement Institute. The survey also found that two-thirds (67%) of pre-retirees expect to face more challenges in retirement than their parents and grandparents.  

This stress is shifting the perception of life as a retiree, especially for those closest to retirement age. Four in 10 (41%) pre-retirees said they would continue working in retirement to supplement their income out of necessity, and more than a quarter (27%) plan to live frugally to fund their retirement goals. What’s more, pre-retirees say their plans to retire have changed over the last 12 months, with 22% expecting to retire later than planned.

“Many of us watched our parents and grandparents enjoy a smooth transition to a secure retirement powered by traditional pension benefits,” said Eric Henderson, President of Nationwide Annuity. “Today’s investors are having a tougher time picturing that for themselves as they grapple with inflation and concerns about running out of money in retirement.”

Adjusting Financial Habits and Expectations
More than other cohorts, pre-retiree investors are adjusting their spending and savings habits. Four in 10 (42%) agree that managing day-to-day expenses is getting more difficult due to the cost of living. Nearly three in 10 (27%) are saving less for retirement because of inflation, and more than half (57%) believe inflation poses the most immediate challenge to their retirement portfolio over the next 12 months. 

Additionally, more than four in 10 (41%) pre-retiree investors are avoiding unnecessary expenses such as vacations, jewelry and shopping sprees to save more for retirement, compared to 34% of non-retired investors.

In contrast to previous generations, trust in traditional financial and retirement safeguards, such as Social Security, has waned. Lack of confidence in the viability of Social Security upon retirement (38%) is a significant factor influencing pre-retirees to rethink or redefine their retirement planning strategies. Over two-fifths (43%) are not counting on Social Security benefits as much as previously expected, and more than a quarter (27%) expect to receive less in benefits than previously anticipated.

Financial Professionals Guide Near-Retirement Strategy
With difficult financial choices ahead for those nearing retirement, advisors are offering actionable insights and recommendations to guide clients toward post-career financial security. Pre-retiree investors are talking with their advisors about: accumulating sufficient savings to enter or stay in retirement (49%), tax planning strategies (38%) and converting accumulated savings into retirement income (33%).

Advisors report counseling their pre-retiree clients on when to claim Social Security benefits (28%), taxes and tax planning (23%), and planning for healthcare costs in retirement (21%). Additionally, advisors are recommending their pre-retiree clients delay taking Social Security benefits (32%) to ensure maximum payment benefits in retirement, an increase from five months ago (28%).

Advisors have also amped up their efforts to incorporate strategies to protect pre-retiree clients against market risk – more than six in ten (61%) advisors are adopting strategies or annuities to do so, compared to 55% just five months ago. Annuities (79%) and diversification/non-correlated assets (77%) rank as the most popular solutions used to help clients protect their assets against market risks.

“The final years leading up to retirement are a critical time for making decisions that can carry life-long implications,” Henderson said. “Financial professionals can help this group create a holistic plan for addressing factors like Social Security, healthcare, long-term care, taxes and income in retirement, topics the Nationwide Retirement Institute offers additional resources on to help facilitate conversations with clients. Good advisors can identify gaps and create plans to address them before it’s too late.”

Nationwide’s ninth 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 research was conducted online within the U.S. by The Harris Poll on behalf of Nationwide from January 8-23, 2024, among 518 advisors and financial professionals and 2,346 investors ages 18+ with investable assets (IA) of $10K+. Investors included a subset of 391 “pre-retirees” age 55-65 who are not retired, and subsets of 346 single women and 726 married women.

Weighting: Raw data from advisors were not weighted and are therefore only representative of the individuals who completed the survey. Investor data are weighted where necessary by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets, and propensity to be online to bring them in line with their actual proportions in the population.  To ensure the investor sample was representative, the data were initially weighted separately for those with investable assets of $10K to less than $100K and those with $100K+ and then post-weighted/combined into a total investor group. Data for the subset of pre-retirees age 55-65 who are not retired were weighted separately as needed by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets and propensity to be online. 

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 + 2.8 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 subset of pre-retirees age 55-65 who are not retired is accurate to within + 6.2 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 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.

NRI’s In-Plan Protected Retirement survey of 1,200 employer-sponsored retirement plan participants revealed one in four women (23%) feel they’re “on the wrong track” for retirement, versus 15% of men, and 41% hold a negative or neutral outlook on their retirement planning compared to just 29% of men. This gender disparity is further demonstrated by the fact that women are less likely than men to have reached key savings milestones, like saving enough for an emergency fund or adjusting their retirement investment allocations.

Today’s macroeconomic landscape may be throwing women retirement savers off course. The report found that women are more likely to be concerned about a recession or economic downturn and the impacts of rising costs or market volatility on their retirement savings. As a result, more than half of women are concerned about outliving their income in retirement (52%). However, only 13% have diversified their investment portfolio and only 15% looked for other investment options that offer protection during economic uncertainty.

“Women are actively participating in their employer-sponsored retirement plans alongside their male counterparts, but they’re also facing a variety of challenges that can make navigating their retirement journey more complex,” said Cathy Marasco, leader of Protected Retirement for Nationwide Retirement Solutions. “Women are likely to live longer in retirement, so it’s understandable that fear of outliving their income would be a source of anxiety. The good news is there are new solutions available for employers to help plan participants address concerns about income in retirement.”

Outliving savings is a top concern, but protected retirement solutions can help
In addition to navigating today’s macroeconomic landscape, another top challenge for 60% of women savers is determining how long they will need their retirement savings to last. Only 11% have created a plan to convert their savings into income in retirement.  They also have other common concerns about their money, including the cost of health care (69%), Social Security not being there when they’re ready to retire (68%), and being able to manage expenses and lifestyle choices during retirement (52%).  

Because of these challenges and concerns about their savings, many are interested in solutions that can help. Three in four women say they wish their 401(k) provided a “pension-like” income stream and nine in 10 women say that they would be at least somewhat likely to roll over their money into an in-plan protected retirement solution if it was offered to them. 

“Women who participated in our study say a pension-like income stream would reduce their stress, increase their financial security and improve their peace of mind,” said Marasco. “This sentiment aligns with our research showing pension holders are more financially confident and less concerned about outliving their money than those without pensions. It’s time for employers to extend those same benefits to today’s workers by offering a guaranteed lifetime income investment solutions through their qualified employer-sponsored plan.”

To learn more about Nationwide’s Protected Retirement solutions and how they can offer plan participants guaranteed income for life and protect against market volatility, visit Nationwide’s resources for financial professionals and plan sponsors.

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

Survey Methodology
Edelman Data and Intelligence (DXI) conducted an online survey of 1,000 U.S. plan participants ages 45+, 100 participants ages 35-44, and 100 participants ages 22-34 with access to a 401(k), 403(b), 457(b) or a government defined contribution plan at their work. The study was conducted from August 10 – 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.

Guarantees are subject to the claims-paying ability of the issuing insurance company.

Provisions of these options may vary based on plan selection and/or by state regulation. These investment options may not be available in all states.

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 © 2024 Nationwide

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Managing expenses and monthly payments has only become more challenging as the cost of living continues to rise. More than four in ten single women (43%) and married women (40%) report increased cost of living poses one of the biggest long-term challenges to their retirement portfolio.

Single women are facing unique financial challenges
As the number of single older Americans steadily grows, single women in particular are grappling with unique circumstances.

The survey found that market volatility and the rising cost of living are causing many single women investors to feel less financially secure than their married counterparts, with only 31% feeling optimistic about their financial outlook for the next 12 months, compared to 39% of married women.

Compounding this concern, more than four in ten single women (44%) are worried about their ability to afford monthly bills in retirement. Managing debt is also one of the biggest financial concerns in the next 12 months for single women (21%), with nearly one in three (31%) single women age 55 or older or retired expecting to be paying down credit card debt in retirement.

To address these challenges, single women are turning to professionals for proactive solutions. While more than one in three women (36%) currently work with an advisor, single women have begun working with them at a slightly higher rate than their married counterparts. More than four in 10 (41%) single women who work with an advisor started to do so in the past 12 months, compared to 37% of married women.

“While women in general face significant challenges when planning for retirement, single women are doing so without the balance provided by a partner’s savings and income. For many, there is no back-up plan,” said Ann Bair, Senior Vice President of Marketing for Nationwide Financial. “It’s encouraging to see that more single women are working with an advisor – and that’s helping them feel more confident and empowered in their retirement planning journey.”

Women want tactical financial guidance
Single women tend to be more proactive than married women when it comes to discussing retirement planning with their advisor. Among those who work with an advisor, more single women (22%) than married women (11%) are establishing advance directives or living wills and identifying beneficiaries. Single women (27%) are slightly more likely to discuss converting accumulated savings into retirement income with their advisor than are married women (22%).

Tax planning strategies (37%), accumulating sufficient savings to enter or stay in retirement (34%) and converting accumulated savings into retirement income (27%) rank among the most common topics that single women are talking with their financial professional about.

When it comes to their partnership with an advisor, one item stands out: single and married women (19% and 25%, respectively) say the main reason they have an advisor is to feel more confident in their financial futures.

Advisors are rising to meet the challenge but may overestimate their ability to connect with women clients
With demand for sound advice growing in today’s inflationary market, advisors are looking to serve more women clients. Nine in ten (90%) advisors are planning to work with more women over the next 12 months, an 11-percentage point increase since August 2023. Notably, 96% of advisors feel well-equipped to do so.

However, just around half of single (47%) and married (51%) women who pay to work with an advisor or financial professional feel they understand their financial goals at this stage in their lives.

“Advisors clearly want to build relationships with more women clients and feel very confident in their ability to serve them – and I have no doubt that most of them have the expertise to address their financial goals and challenges. However, our data shows a disconnect, with only about half of women indicating their advisor understands their financial goals,” said Suzanne Ricklin, Vice President of Sales and Retention for Nationwide Retirement Solutions. “This highlights an opportunity for advisors to take a step back and ensure they are truly listening in their interactions before offering solutions. Many women investors we surveyed appear to indicate they don’t feel heard by their advisor – and that can be a true differentiator for advisors in advancing relationships with more women clients.”

The Nationwide Retirement Institute offers a variety of resources to help financial professionals facilitate a conversation that meets women clients where they are.

Advisors are bringing solutions to the table
Financial advisors share women’s concerns about the current economic environment and are providing insights and recommendations to help their female clients better prepare them for retirement. Almost half (48%) of advisors say the rising cost of living has influenced clients to rethink or redefine retirement planning strategies, followed by inflation (45%).

When it comes to retirement solutions, nearly eight in ten (79%) advisors who have a strategy to protect client assets against market risks are employing annuities to help them address this challenge, followed by diversification and non-correlated assets (77%) and liquid alternatives, such as mutual funds or ETFs (58%).

“It’s encouraging to see more advisors recognize the opportunity to serve women clients,” said Ricklin. “For single women clients in particular, focusing on their unique needs, like planning for long-term financial independence and building a robust emergency fund can help them feel more confident and committed. With women poised to inherit trillions of dollars of assets from the Baby Boomer generation over the course of the Great Wealth Transfer, advisors who focus on this client group and demonstrate a clear understanding of their needs and preferences have a huge opportunity to grow their practices.” 

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

Nationwide’s ninth 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 research was conducted online within the U.S. by The Harris Poll on behalf of Nationwide from January 8-23, 2024, among 518 advisors and financial professionals and 2,346 investors ages 18+ with investable assets (IA) of $10K+. Investors included a subset of 391 “pre-retirees” age 55-65 who are not retired, and subsets of 346 single women and 726 married women.

Weighting: Raw data from advisors were not weighted and are therefore only representative of the individuals who completed the survey. Investor data are weighted where necessary by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets, and propensity to be online to bring them in line with their actual proportions in the population.  To ensure the investor sample was representative, the data were initially weighted separately for those with investable assets of $10K to less than $100K and those with $100K+ and then post-weighted/combined into a total investor group. Data for the subset of pre-retirees age 55-65 who are not retired were weighted separately as needed by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets and propensity to be online. 

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 + 2.8 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 subset of pre-retirees age 55-65 who are not retired is accurate to within + 6.2 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 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.

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

For more information, visit www.nationwide.com.

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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 © 2024 Nationwide.

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03/2024

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.