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.

• 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.

This improved outlook comes despite uncertain market conditions. For some, the uncertainty has encouraged more active engagement: 44% of workers say they are checking their retirement account balances more frequently in recent months due to market fluctuations. However, for others, that same volatility has also prompted reactive decisions, with 48% shifting savings to more conservative assets, potentially sacrificing long-term growth for short-term reassurance – or locking in losses in down markets.  That number climbs to 54% among young people ages 22-34 who have longer investment time horizons.

Most concerning, those who express the highest levels of confidence are more likely to make decisions that could undermine their financial futures. They are 12 points more likely to have reallocated savings to more conservative assets and 10 points more likely to have made emotional decisions about their retirement investments that they ended up regretting. These include selling at market bottom, putting too much of their portfolio in a single asset class, halting retirement contributions altogether or buying too high when markets recover. These actions run counter to long-term investment principles and reflect instinctive, rather than informed, choices.

These findings underscore a troubling reality: confidence may not be grounded in financial knowledge. In fact, fewer than half of American workers (46%) correctly understand how compound interest works – one of the most essential, foundational concepts in retirement planning. Similarly, Americans aged 50-75 averaged just 31% on a retirement literacy quiz despite expressing high confidence in their preparedness, according to a study from The American College of Financial Services.

“These findings show that feeling confident isn’t the same as being prepared. Even confident investors make decisions that undermine their long-term financial security,” said Cathy Marasco, vice president of Protected Retirement at Nationwide. “To prevent letting emotion drive decisions, workers should make sure they’re taking advantage of the best advice they can get from a financial professional or resources provided by many workplace retirement plans for those who may not have access to an advisor. They may also find security in innovative solutions that may be offered by their workplace retirement plan, like lifetime income investment options that can deliver protection without sacrificing growth, even in volatile markets.”

“Even financially knowledgeable investors often make emotional decisions during market volatility,” said Eric Ludwig, PhD, CFP®, Director of the Center for Retirement Income at The American College of Financial Services. “The solution isn't just more education, but plan designs that account for human psychology. Features like lifetime income options can help workers avoid the temptation to make reactive decisions in the first place, regardless of their knowledge level."

Employees Seek Predictability, Employers Lag Behind

Employees’ desire for stability is clear in the survey findings. Most workers say they want plan features that provide predictability and protection, including auto-enrollment (73%) and automatic contribution increases (64%). Yet many don’t have access to these tools according to the survey: Only 66% of private sector employers offer auto-enrollment and just 51% offer auto-increase.

When it comes to protection, like in-plan lifetime income funds, the demand among private-sector employees far outpaces what most of their employers provide. About 9 in 10 employees say they want guaranteed monthly income that lasts for life, yet less than 2 in 5 private sector employers offer such plans. While many employers cite higher employee costs as a barrier, 85% of private sector workers say they would be willing to pay more today for protected investment options.

“Our survey findings highlight the need for private employers to offer guaranteed income sources to their employees, especially with so much uncertainty around the future of Social Security. Offering solutions like lifetime income investment options within retirement plans is not just good for employees, it’s good for business,” added Cathy Marasco. “These features strengthen retirement readiness, which can boost employee satisfaction, ease long-term financial pressures on organizations and aid recruiting and retention. Confidence without knowledge is risky, but with the right tools, workers can build retirement security with even more confidence.”

You can find information about Nationwide’s protected retirement solutions here for financial professionals and here for plan sponsors.

For more insights on this survey data, see the Advisor Advocate Blog or view this infographic.

Methodology

Edelman Data and Intelligence (DXI) conducted a national online 20-minute survey of n=500 private plan sponsors, n=100 public plan sponsors, and 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. 

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NFM-24755AO (05/25) 

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. 

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.

This survey of 1,334 U.S. adults aged 28 or older with household incomes $75,000 or higher found that many are in the difficult position of balancing caregiving and their long-term financial wellbeing, often leading them to make significant financial sacrifices.

Among the key findings:

• When considering how they will afford to provide care for loved ones, over half (56%) said they are willing to take a loan from their retirement account to be a caregiver for someone in their family, straining their long-term finances
• Nearly half (42%) believe being a caregiver will likely use up the money they had planned for their children
• Caregivers have substantial out-of-pocket non-reimbursed expenses associated with caregiving, such as co-pays, prescription drugs, gas money, transportation, and more. On average, these individuals spend $338 per month on caregiving expenses
• Nearly half (43%) are afraid that caregiving expenses will keep them from ever retiring
• Fifteen percent of Americans had to transition to part-time work to be a caregiver or take a lower paying job that is more flexible in order to be a caregiver

While it is clear that the caregiving role can place a significant financial strain on individuals and families, only 17% of adults say they have discussed long-term care planning with their financial professional. Of those who have a financial professional but have not talked with them about long-term care costs, 30% report that their financial professional has not brought it up as a planning topic.

“Long-term care planning is complicated and emotional, and has a huge impact on financial wellbeing,” said Holly Snyder, president of Nationwide’s Life Insurance business. “Our data shows that Americans would benefit from taking a more proactive approach to financial planning to ensure they are equipped to meet the needs of their loved ones and themselves as they age. The most important step financial professionals can take is to proactively communicate with their clients, ensure they understand the costs, and develop a long-term care plan that accounts for their own long-term care needs as well as those of their loved ones.”

Many Americans have misconceptions about the cost of long-term care insurance

Unfortunately, many Americans are underutilizing the safeguards in place to help manage long-term care costs, such as long-term care insurance. In fact, just one in five said that they have purchased long-term care insurance. Of those who have not purchased the insurance, nearly half (49%) cited cost as a reason for not prioritizing it.

All too often, people overestimate the cost of long-term care insurance. When presented with a description of a sample long-term care insurance policy, 20% guessed it was $500+ per month, nearly four times the actual cost of $130 per month. After they were told that the policy cost $130 per month, 40% said they were willing to consider purchasing a similar one for themselves.

“Because most people assume long-term care insurance isn’t affordable, they don’t purchase a policy, which can leave them saddled with hefty long-term care costs later in life,” Snyder added. “It is great to see that so many said they would consider purchasing a policy after seeing an estimate. This misperception is a costly mistake that can easily be avoided with the right insurance partner and a proactive financial professional.”

Future long-term care is looking bright with the help of AI

Although long-term care costs and caregiver expenses are a financial burden for many of these Americans, advancements in AI, AI helper tools, or robots could change the way people receive their long-term care and reduce the financial strains placed on caregiving and aging.

While almost one third (32%) do not believe they will be able to afford to receive long-term care in their home, over half (54%) expect that AI and robotics will be affordable for people like them to help with aspects of daily living later in life.

Americans anticipate AI to assist in more ways than only easing financial strain. Over one third (37%) believe AI will provide their in-home long-term care, relieving stress from family and loved ones. Additionally, more than half of Americans (53%) expect AI will make their job easier – either by alerting them if the person they are caring for suffers a medical emergency (47%) or helping them manage their medication and appointments (36%).

In fact, One in three Americans (33%) expect AI to extend their life an average of 6 years. And a third of caregivers (36%) expect AI to extend the life of the person they provide care an average of 7 years.

To encourage discussions around long-term care costs in retirement, Nationwide’s Health Care/LTC Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data to provide a meaningful, personalized cost estimate to help financial professionals and clients plan for future medical and long-term care expenses.

To learn more about the 2024 Nationwide Retirement Institute Long-term Care survey, visit www.nationwide.com/ltcinsights. Financial professionals can learn more at www.nationwidefinancial.com/ltcinsights.

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+. 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.

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.

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

NFN-1605AO

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 3.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

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

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

About The Harris Poll 
The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing.

The 2023 Social Security survey delivered concerning findings: three-fourths (75%) of adults age 50+ worry Social Security will run out of funding in their lifetime, up from 66% in 2014. Additionally, one in five (21%) adults age 50+ say they have no source of retirement income in addition to Social Security, up from 13% in 2014. Ten years ago, nearly half of Americans (48%) had a pension in addition to Social Security, compared to just 31% in 2023.

A notable bright spot is that more adults age 50+ are talking with a financial professional about Social Security today than they were in 2014. Over half (53%) of adults today say their financial professional provides advice on how and when to file for Social Security benefits, up significantly from 35% in 2014. More than two-fifths of adults (43%) with a financial professional now expect their financial professional to provide Social Security advice, a 14-point jump from 10 years ago (29% in 2014).

“A decade of research into Americans' views on Social Security confirms that working with a trusted financial professional isn't just beneficial, it's vital to maximizing your benefits—especially as retirement approaches,” said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide. “Social Security education is an empowerment tool and a proven strategy for creating financial resilience, one that financial professional stand ready to provide.”

Gen Z and millennials are pessimistic about the future, but plan to take action
In addition to analyzing the 10-year trends among adults age 50+, this year’s survey also reveals how younger generations think about Social Security’s future. The study found that about two-fifths or more of Gen Z (45%) and millennials (39%) believe they will not get a dime of the Social Security benefits they have earned.

The majority of Gen Z (76%) and millennials (76%) anticipate they will need to continue working in retirement because Social Security will not pay enough. However, the younger generations are more likely to turn to financial professionals for help. More than two in five (43%) Gen Z and 39% of millennials plan to ask a financial professional about Social Security benefits, compared to just 22% of Gen X and 6% of baby boomers.

Americans across generations lack critical Social Security education 
Nearly half (49%) of U.S. adults 18+ say they know how to maximize their Social Security benefits. However, only 8% correctly identified all the listed factors that determine the maximum Social Security benefits an individual can receive.

Few know what age they are eligible for full retirement benefits. In fact, only 13% of adults correctly guess their full retirement age based on their year of birth. On average, Americans guessed 60 years of age and Gen Z and millennials guess 54 and 55, respectively. The correct age is either 66 or 67, depending on the year a person is born.

Another costly misconception is that almost half (49%) of adults don’t know or mistakenly believe that if they file for Social Security early then their benefits will automatically go up once they reach their full retirement age.

Other key knowledge gaps include:

• About half (51%) of adults do not know or are not sure what percentage of their income is or will be replaced in retirement by Social Security.
• More than two in five (42%) of those not currently receiving Social Security are not sure how much their monthly Social Security payments will be once they claim benefits.
• More than two-thirds of consumers (70%) do not know that Social Security is protected against inflation.

“Nearly four out of five Americans say that the Social Security system needs to change, while at the same time our research shows that most people don’t understand how the current system works,” Ambrozy continued. “We need to adopt a collaborative approach to preparing Americans for a financially secure retirement, drawing on the expertise and care of solution providers like Nationwide, public policymakers, and financial professionals across the country. Social Security is a complex system, and it can be difficult to know what you are entitled to. The past ten years of research have been about providing insights to aid that effort, and while we have made notable progress, we still have work to do.”

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 1,806 adults age 18+ who currently receive or expect to receive Social Security (“national sample”), including 300 Gen Z (age 18-26), 500 Millennials (age 27-42), 504 Gen Xers (age 43-58), and 502 Boomers+ (age 59+), and oversamples for a total of 532 Hispanic adults, 507 Black adults, and 105 Asian adults. The survey was conducted May 18 – June 13, 2023. Data are weighted where necessary age by gender, race/ethnicity, region, education, marital status, household size, household income and propensity to be online to bring them in line with their actual proportions in the population. To ensure the national sample was representative, the data were initially weighted by generation (Gen Z 18-26, Millennials 27-42, Gen Xers 43-58, and Boomers+ 59+) and then combined into a total age 18+ group. Data for age 50+ U.S. adults were weighted as needed by age by gender, race/ethnicity, region, education, household income, retirement status, 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 + 3.0 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 age 50+ adults is accurate to within + 4.2 percentage points using a 95% confidence level. 

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.

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

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

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

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

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

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

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

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

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

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

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

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

Methodology
Nationwide partnered with Edelman Data & Intelligence to conduct a 15-minute online survey among a sample of 2,000 nationally representative adult consumers between March 30 and April 13, 2023. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.

The information in this report is provided by Nationwide Economics and is general in nature and not intended as investment or economic advice, or a recommendation to buy or sell any security or adopt any investment strategy. Additionally, it does not take into account any specific investment objectives, tax and financial condition or particular needs of any specific person.

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

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

NFM-22998AO

In addition to having to reduce savings contributions, women are also delaying their retirements to help their loved ones manage rising expenses. More than one in 10 (15%) women who are expecting to delay or cancel their retirement say they are doing so because they had or have to financially support a family member or friend as a result of inflation.

These setbacks are taking a toll on women’s futures and wellbeing. More than half (56%) of women feel worried when thinking about where they are at with their current retirement plan and financial investments, a 22-percentage point uptick from 2021. And 57% of those who are delaying or cancelling their retirement due to inflation say it has negatively impacted their mental health, versus 48% of men.

“Inflation has made saving for retirement particularly difficult for many Americans, but we are seeing the effects among employer-sponsored retirement plan participants greatest felt by women. In addition to having to reduce their retirement savings, women often have the responsibility of serving as the caretaker for loved ones,” said Amelia Dunlap, vice president, Retirement Solutions Marketing at Nationwide. “I know it can be difficult to navigate the short-term challenges we’re facing with market volatility and rates of inflation. It’s critical that plan sponsors help their employees keep focused on the longer-term view, avoid emotional investing or reactions and offer solutions that will help them stay on track for their goals.”

Women are seeking solutions
In addition to navigating inflation, women also struggle to optimize their income in retirement. For example, roughly half (51%) of female participants face challenges around turning their retirement savings into income in retirement. Only 4% of women are moderately or extremely familiar with retirement planning for decumulation.

However, more women than men are interested in solutions that can help them navigate challenges around inflation and better plan for retirement. Almost all (92%) female plan participants say they would be at least somewhat likely to rollover a portion or all of their current retirement plan savings into a guaranteed lifetime income investment option if they were able to, compared to 83% of men.

“The start of a new year is an opportune time for plan sponsors to reevaluate their retirement offerings to ensure their participants – particularly women – are able to retire on time with greater confidence,” continued Dunlap. “Guaranteed lifetime income investment options can help participants navigate today’s high inflation and provide them with the decumulation strategy they need in retirement. Additionally, there are investment solutions that help protect against market downturns for those that are seeking more certainty in this volatile market.”

Nationwide’s guaranteed lifetime income solutions (PDF)  offer plan participants guaranteed income for life and can help provide protection against market volatility. Nationwide also offers educational resources for financial professionals, advisors and consultants. Plan sponsors – please contact your Nationwide representative.

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

Methodology
Edelman Data and Intelligence (DxI) conducted an online survey on behalf of Nationwide from July 14 – August 5, 2022. Respondents included:

• 500 Company Plan Sponsors/Benefits Decision Makers. Business executives, business owners, human resources professionals, and financial management professionals who are full-time workers at U.S. businesses with at least 10 full-time employees. They must also be decision-makers for company retirement plans including 401(k), 403(b), or 457(b) plans)
• 100 Public Sector Plan Sponsors/Benefits Decision Makers. Full-time employees of a public sector entity (federal, state, local govt) that offers a defined contribution retirement plan to its employees. Must have some level of decision making regarding these plans. Can include HR, financial management professionals or government executives/senior managers with decision making authority.
• 1,000 Plan Participants (45+). 45+ years of age, full-time worker, who has access to 401(k), 403(b), 457(b) or a government defined contribution plan at their work. Sample included a minimum 100 government plan participants.
• 100 Plan Participants (35-44). 35-44 years of age, full-time worker, who has access to 401(k), 403(b), 457(b) or a government defined contribution plan at their work.

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

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

Nationwide and Edelman Data and Intelligence are separate and non-affiliated companies.

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.

Guarantees are backed by the claims-paying ability of the issuing insurance company.

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

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

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

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

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

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

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

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

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

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

NFM-22454AO

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About The Harris Poll 
The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NFM-22295AO

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

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

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

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

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

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

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

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

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

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

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

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

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

Adding to those concerns, most consumers (70%) across generations worry that Social Security will run out of funding in their lifetime. One in three adults (33%) not currently receiving Social Security benefits believe they won’t get a dime of what they’ve earned when they retire.

Despite worries about inflation, the survey also found an important misperception about Social Security: more than two-thirds of Americans don’t realize that Social Security is protected against inflation.

“Every year we find that all generations need more Social Security education, but in this uncertain economic environment it’s more important than ever for people nearing retirement to understand that their Social Security benefits are protected against conditions such as inflation,” said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide. “There is an immediate opportunity for financial professionals to clear up clients’ misconceptions about Social Security to alleviate their fears and help them stay on track toward their long-term retirement goals.”

Americans have a pessimistic outlook on their financial futures – and they’re changing behaviors accordingly
These worries may be leading many older Americans to tap into their Social Security benefits early. In fact, one in four (26%) Boomers+ who are not currently receiving Social Security plan on filing for Social Security benefits early while continuing to work. Almost two in five (39%) Boomers+ who are not currently receiving Social Security plan on drawing their benefits before their full retirement age.

Survey findings suggest Americans’ concerns about the economy and the pandemic are fueling their fears for the future. Nine in 10 consumers (86%) are concerned about inflation’s impact on the U.S. economy. Older generations are most concerned for the future, with Gen Xers and Boomers+ more likely than Millennials to believe the U.S. economy is getting worse (57%, 67% vs. 36%).

As a result of inflation, Americans across generations are making changes in their daily lifestyles and canceling or postponing life events in the past 12 months because of inflation:

• More than two-fifths (42%) of Americans are eating out less and one-third (35%) are driving less
• 15% have cancelled or postponed taking a planned vacation
• 12% have cancelled or postponed buying a new or used car

Concerns about COVID-19’s adverse impact on retirement security has accelerated since 2021. Today, Americans are more concerned about the pandemic’s impact on their retirement plans than they were last year, with 20% of non-retired Americans pushing back their retirement start date due to COVID-19 this year, compared to just 15% in 2021. Additionally, almost half (47%) of Americans are re-evaluating their retirement plans to assess the financial impact of COVID-19, a nine-percentage point jump from 2021 (38%).

Most Americans are misinformed about Social Security
Survey findings suggest solving Social Security misconceptions may help ease some fears about the future.

• Key knowledge gaps include:
• Only 7% correctly identified all the listed factors that determine the maximum Social Security benefits an individual can receive
• Almost half (49%) of adults don’t know or aren’t sure what percent of their income is or will be replaced in retirement by Social Security, and more than two in five (44%) of those not currently receiving Social Security aren’t sure how much their monthly Social Security payments will be
• Only 13% of adults correctly guess their full retirement age based on their year of birth
• Almost half (49%) mistakenly believe if they file early their benefit will automatically go up once they reach their full retirement age

These knowledge gaps reveal an immediate opportunity for financial professionals to help their clients better navigate the Social Security landscape. While only about one in three (36%) surveyed currently work with a financial professional, the good news is more Millennials are turning to financial professionals for help, with 50% reporting they work with one in 2022, compared to just 42% in 2021. Additionally, Millennials and Gen Xers are more likely than Boomers+ to say they prefer to learn more about Social Security from a financial professional (30%, 26% vs. 12%).

“It’s understandable that people are worried about retirement in the face of the current economic environment,” continued Ambrozy. “Individuals at all stages of their careers can benefit from educating themselves about the Social Security system and retirement planning and a trusted financial professional can help with that education.”

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
This survey was conducted online within the U.S. by The Harris Poll on behalf of Nationwide between April 25 and May 23, 2022, among 1,853 U.S. adults age 26+ (national sample), including 674 Millennials, 576 Gen Xers, 603 Boomers+. Data were statistically weighted as needed to bring them in line with the population of U.S. residents age 26+ from the 2020 Current Population Survey for age by gender, education, race/ethnicity, region, household income, marital status, and household size. 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 + 2.9 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 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.

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

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

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

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

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

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

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

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

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

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

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

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

Since last October, prices of goods and services have exceeded a 5% increase on a year-over-year basis. Higher inflation leads consumers across generations to make difficult decisions with their money and savings that impacts their lifestyles and futures.

A new consumer study by the Nationwide Retirement Institute^Ò revealed that 90% of American consumers are concerned about inflation, leading to an overall grim outlook on the U.S. economy.

“Following months of decades-high inflation, the war between Russia and Ukraine is intensifying inflationary pressures, worsening supply chain snarls, and spiking gas prices. It’s understandable that consumer sentiment is very low right now,” said Mark Hackett, Nationwide’s Chief of Investment Research.

Declining purchase power has led all generations to make the tough decision to postpone or cancel major life events. Over one-third of Gen Z and Millennials have already postponed or are considering postponing their weddings and plans to start a family. Consumers are also more likely to delay buying a car or home and have cancelled their vacations. For older generations, more than 10% near retirement age have or are considering postponing plans to retire.

In addition to these cancelled or postponed major life events, all are making changes in their daily lifestyles to combat inflation. This includes:

• Eating out less (48%)
•  Driving less (35%)
• Relying more on credit cards (21%)
• Looking for a better paying job (19%) – higher for Gen Z at 32% and millennials at 30%
• Moving in with family to save money (14%) – higher for Gen Z at 30% and millennials at 21%
• Reducing contributions to their 401(k) (10%)

Regardless of the trade-offs families and individuals are making, they are still feeling the effects of inflation. This has led to an overall grim outlook on the U.S. economy and many expect continued price increases through the rest of 2022.

Despite the widespread concerns about inflation across generations, the U.S. economy is preforming better than the study’s findings may suggest.

“Americans should know that the economy is actually performing better than people think,” said Hackett. “Job security is extremely strong, and even though we’ve seen a lot of market volatility, consumers have record wealth due to equity market and home price rallies.”

However, if the Federal Reserve increases interest rates as expected at its March 2022 meeting, the news will be met with mixed feelings. Consumers are most likely to feel worried (37%) or frustrated (30%) by news of a rate hike with just 23% feeling hopeful. Fourteen percent of all respondents say they would be confused, which rises to 25% among Gen Z.

“Following months of decades-high inflation, the war between Russia and Ukraine is intensifying inflationary pressures, worsening supply chain snarls, and spiking gas prices. It’s understandable that consumer sentiment is very low right now,” said Mark Hackett, Nationwide’s Chief of Investment Research. “But Americans should know that the economy is actually performing better than people think, job security is extremely strong, and even though we’ve seen a lot of market volatility, consumers have record wealth due to equity market and home price rallies.”

Americans are postponing or canceling major life events due to inflation
As inflation continues to rise, consumers are feeling the squeeze. Almost all consumers (90%) are concerned about the rising rate of inflation, and more than half (58%) say their purchasing power is declining.

As a result, consumers are setting aside major life events because of rising costs, especially younger generations. More than one-third (35%) of Gen Z and millennials (34%) have already postponed or are considering postponing plans to start a family. Additionally, 33% of Gen Z and another 28% of millennials have already postponed or are considering postponing plans to hold a wedding. This trend extends to older generations as well: more than one in 10 (13%) of consumers near retirement age (Gen Xers and baby boomers) have already postponed or are considering postponing plans to retire.

In addition to cancelling or postponing major life events, consumers across generations are making changes in their daily lifestyles. This includes:

• Eating out less (48%)
• Driving less (35%)
• Relying more on credit cards (21%)
• Looking for a better paying job (19%) – higher for Gen Z at 32% and millennials at 30%
• Moving in with family to save money (14%) – higher for Gen Z at 30% and millennials at 21%
• Reducing contributions to their 401(k) (10%)

Most see U.S. economy getting worse through 2022
Consumers expected continued price increases and economic upheaval through the rest of 2022. Just 28% of consumers expect the current inflationary surge to be temporary, and the majority expect increases in housing costs, gas prices, interest rates, and the general cost of goods and services over the next 12 months. Fifty-five percent of consumers expect income tax rates to rise and 46% say the same of unemployment.

“While it’s understandable that consumers are relying more on credit cards and reducing their retirement plan contributions to soften the short-term effects of inflation, it’s important for consumers to consider the implications on their long-term financial strategy,” said Eric Henderson, president of Nationwide Financial's annuity business. “This is an opportunity for consumers to work with a financial advisor to revise their spending budget so they can make day-to-day ends meet while still save for future goals, like retirement.”

Advisors can click here to see our latest insights on inflation and other financial topics to help plan client conversations.

Methodology
Edelman Data and Intelligence (DxI) conducted an online survey of 2,000 nationally representative adult U.S. consumers ages 18 and over on behalf of Nationwide. The survey was fielded from February 11 through February 17, 2022.

According to the tenth annual Nationwide Retirement Institute® Long-term Care survey of 1,812 U.S. adults aged 24 or over and 706 caregivers, conducted by The Harris Poll in October 2021, the vast majority of Americans (88%) believe it’s more important than ever for people to have a plan for long-term care and have long-term care insurance (86%) as COVID-19 has raised concerns about nursing homes.

“The pandemic has further fueled people’s fear of being alone in a nursing home when they need long-term care,” said Holly Snyder, president of Nationwide’s life insurance business. “Our survey revealed that six in 10 adults would rather die than live in a nursing home. It’s also made people consider whether they have a plan that will allow them to age in place in their current home if they need long-term care.”

What’s more, 80% of Americans agree that it is important for them to live in a single-floor home when they age. In contrast, 68% of non-retirees say their current home has stairs.

“Many adults are concerned about navigating their home’s stairs and step-up entries as they age,” Snyder added. “In fact, nearly half of those we surveyed (47%) say they are more afraid of falling than getting cancer. There are long-term care solutions with cash indemnity style benefits that allow policy holders to use the money to pay for more than just typical assisted living expenses. You can use this coverage to pay a relative to help with your long-term care and to install lifts, elevators and safety railings so you can stay in your home.”

A family affair
Most adults (70%) would like to have the option of relying on their family for long-term care if they need it. In fact, half (50%) feel it is the responsibility of their family to care for them if they need long-term care. This sentiment is particularly high for Millennials (69%) and declines with age (52% for Gen Xers and 33% for Boomers+). Millennials and Gen Xers expect their parents to live with them when they get older (61% and 49%), and they expect to live with their adult children when they get older (46% and 36% vs. just one in four Boomers).

That said, two-thirds of adults (66%) are worried they will become a burden to their family as they get older. Seven in 10 adults (70%) would not expect a family member to provide long-term care if they were unable to compensate them.

Many adults misunderstand long-term care coverage
The survey reveals that 25% of adults self-report that they currently own long-term care insurance for themselves. This is concerning, as industry data shows only 15% of Americans have purchased long-term care insurance and most of those are older consumers.*

According to the survey, Millennials (39%) are more likely than Gen Xers (26%) and Boomers+ (19%) to claim they currently own long-term care insurance for themselves. Most say they bought the insurance at work, which gives away the misconception - too many adults confuse long-term disability insurance with long-term care insurance.

“Rarely is long-term care included in a company benefit package,” Snyder said. “This misconception could mean that many Americans – mostly Millennials – mistakenly believe they have some sort long-term care coverage, when in fact they do not.”

Most Americans (61%) cannot even estimate what current annual nursing home costs could be. Those who did, estimate current annual nursing home costs to be $43,096. That is not even half of what a semi-private room averages in 2020 ($93,075 semi-private, $105,850 for a private room**). They also underestimate home health care costs at $33,617 ($54,912**).

Caregivers face unique challenges 
According to the survey, two in 10 adults are currently caregivers (21%) and close to four in 10 have been a caregiver at some point in their lives (39%). Caregiving is a time and money-intensive role. On average, most caregivers spend an average of 31.4 hours and $692 a month on caregiving duties.

Eight in 10 (80%) believe they should be able to be a caregiver without dipping into their savings to cover day to day expenses. The reality is, many say they are afraid caregiving expenses will keep them from ever retiring (68% of Millennials and 53% of Gen Xers), as well as worry caregiving could cause them to lose their job (62% of Millennials and 42% of Gen Xers). Despite all this, if given the choice, 80% of caregivers would choose to be a caregiver all over again.

Financial professionals have solutions
Nearly half of adults across all age groups have not discussed long-term care costs with anyone. With fewer than one in 10 adults (8%) saying they’ve discussed long-term planning with their financial professional, it’s important they start the planning process today to set themselves, their loved ones and future caregivers, up for success.

The good news is that more than one-third (36%) plan to discuss long-term care costs with a financial professional in the future, in particular younger adults (41% Millennials and 46% Gen Xers, vs. 24% Boomers+).

“It is very clear that Americans across all generations need more education about long-term care costs and solutions,” Snyder said. “Financial professionals can help adults create a plan that addresses these issues.”

To encourage discussions around health care and long-term costs in retirement, Nationwide’s Health Care/LTC Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data to provide a meaningful, personalized cost estimate that will help financial professionals and clients plan for future medical and long-term care expenses.

To learn more about the 2021 Nationwide Long-term Care Consumer Survey, visit www.nationwide.com/ltcinsights. Financial professionals can learn more at www.nationwidefinancial.com/ltcinsights.

Methodology
The 2021 Nationwide Retirement Institute Long-term Care survey was conducted online within the United States between adults aged 25 and over by The Harris Poll on behalf of The Nationwide Retirement Institute. Within the survey, respondents who are current caregivers or have been caregivers in the past were identified. Caregivers are defined as those who have ever or are now providing paid or unpaid long-term care to a friend or family member, not through an agency, business, or non-governmental organization. Those who care(d) only for a child under 18 or a child over 18 born with a disability did not qualify as a caregiver for this survey.

Respondents for these surveys were selected from among those who have agreed to participate in our surveys. Because the sample is based on those who agreed to participate in the online panel, no estimates of theoretical sampling error can be calculated. Data are weighted where necessary by age by gender, race/ethnicity, region, education, household income, marital status, household size, and propensity to be online to bring them in line with their actual proportions in the population. A propensity score was incorporated into weighting to adjust for attitudinal and behavioral differences between those who are online versus those who are not, those who join online panels versus those who do not, and those who responded to this survey versus those who did not.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

Conducted by The Harris Poll on behalf of Nationwide Retirement Institute®, the study finds more than half of Americans not already receiving Social Security benefits (54%) say they know exactly how to optimize their Social Security benefit, however only 6% know all the factors that determine the maximum benefit someone can receive. Other common knowledge gaps include:

• Eligibility age: Two in five (39%) don’t know the eligible age to receive full benefits
• Payments: Half of those not already receiving Social Security (51%) don’t have a clear sense of how much they will receive in Social Security income
• Spousal/child benefits: 30% don’t know that Social Security may offer benefits for spouses and children
• Inflation protection: More than a third (37%) incorrectly believe that Social Security benefits are not protected against inflation
• No adjustments: 45% mistakenly believe if they claim early, their benefits will go up automatically when reaching full retirement age or don’t know this is false

This knowledge gap even extends to Americans currently receiving Social Security benefits. More than half of current beneficiaries (55%) don’t know what percentage of their pre-retirement income Social Security is replacing.

“It’s indisputable that Americans across all generations need more Social Security education,” said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide. "Unfortunately, failing to close the knowledge gap and correct some of these misconceptions can have costly repercussions. Financial professionals must help their clients understand this bedrock of retirement security in America and plan properly to maximize their Social Security benefit.”

Americans are wary of Social Security’s sustainability
Americans may not be taking the time to educate themselves about Social Security because they don't think it'll exist when they're ready or need to claim their benefit. Seven in 10 adults age 25+ (71%) worry about the Social Security program running out in their lifetime — especially millennials (77%) and Gen Xers (83%). Surprisingly, even 61% of baby boomers agree. Even more, nearly half of millennials (47%) believe that they “will not get a dime of the Social Security benefits they have earned.”

The COVID-19 pandemic has contributed to this pessimistic outlook. Six in 10 Americans (59%) say they worry more now than they did before about Social Security running out of funding. Around one in five (19%) say the pandemic has impacted their plans to file for Social Security benefits, with 9% planning to file for it earlier and 11% delaying filing.

The immediate opportunity for financial professionals
The pandemic has been a wakeup call for Americans to reevaluate their finances and retirement plan, including their reliance on or plan for Social Security benefits. More than two-thirds (68%) say it is now more important than ever to optimize their Social Security. This percentage jumps to 80% for Gen Xers and 71% for millennials.

Today’s challenge is that more than half of adults age 25+ (53%) who work with a financial professional say that person doesn’t provide advice about how and when to file for Social Security benefits. However, two thirds (66%) say they would be likely to switch to a financial professional who could.

“This survey shows us that Social Security is too complex for many Americans to navigate alone, which creates the need for trusted financial professionals to help them determine the best plan for them,” said Ambrozy. “There is an immediate opportunity for professionals to answer clients’ call for help and ensure their strategy aligns with their long-term planning and retirement goals.”

Ambrozy adds that financial professionals can help consumers effectively and holistically prepare for the future by having more in-depth client conversations around understanding and maximizing Social Security benefits. 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 
This survey was conducted online within the U.S. by The Harris Poll on behalf of Nationwide between April 19 and May 7, 2021 among 1,931 U.S. adults age 25+ (national sample) including 627 millennials (age 25-40), 634 Gen Xers (age 41-56), and 670 boomers+ (age 57+). Data were statistically weighted as needed to bring them in line with the population of U.S. residents age 25+ from the 2020 Current Population Survey for age by gender, education, race/ethnicity, region, household income, marital status, and household size.

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.

Conducted by The Harris Poll on behalf of The Nationwide Retirement Institute®, the study also found one-fourth (27%) of Americans have saved less or stopped saving for retirement because they lost their job or for other reasons. In result, almost two-in-five Americans (37%) have or are likely to withdraw money from their retirement plan early because of the pandemic, and this percentage is even higher for millennials at 58%.

Overall, the study reveals younger adults have struggled with navigating their finances the most, with 62% of millennials and 51% of Gen Xers saying the pandemic has made their finances more complicated, compared to 27% of boomers.

“COVID-19 has many Americans feeling financially insecure — especially younger ones,” said Eric Henderson, president of Nationwide’s Annuity business. “This presents an opportunity for financial professionals to not only get clients back on track, but ensure they have the right tools and education on topics like taxes in retirement, which can get them closer to their long-term goals.”

The Education Gap on Taxes in Retirement
COVID-19 has put a needed spotlight on the critical role tax planning plays in reaching those long-term goals. Almost half (47%) of Americans expect their taxes to go up significantly in the next four years and the majority (62%) agree it’s more important than ever to minimize taxes now than in retirement. They’re right to be vigilant — 42% of retirees say they didn’t consider how tax rates would affect their retirement income when planning for retirement and now 36% are terrified of what tax rates will do to their retirement income.

While most Americans agree they should minimize their taxes now, the challenge is many aren’t financially savvy enough to do this on their own — especially today. Forty-two percent of all respondents say their taxes have become more complicated as a result of COVID-19, and this percentage jumps to 58% for millennials. Only 58% of adults surveyed know how to use tax planning to get the desired outcome they want from the IRS during tax season.

“The worries retirees have about taxes in retirement should serve as a warning to non-retirees. Too many Americans aren’t considering or knowledgeable about building flexibility into a retirement income plan and this can have costly repercussions down the road,” said Henderson. “There’s an opportunity to bridge the education gap on how different investment and retirement vehicles, such as taxable, tax-deferred and tax-free accounts, can help effectively manage retirement income.”

The Opportunity for Financial Professionals 
The good news is many Americans are eager to seek help from a financial professional on this topic, especially millennials. Nearly half of millennials (48%) and one-third of Gen Xers (32%) engaged a financial planner for the first time due to the pandemic, compared to 12% of boomers.

However, the challenge is more than half of Americans (57%) rarely consider the taxes they will pay or are paying in retirement and 31% aren’t receiving the tax advice they need for retirement. There is an immediate opportunity for financial professionals to address this need, with half (50%) of Americans reporting they’d switch financial professionals for someone who could help them plan for taxes in retirement.

More specifically, Americans would like advice on how to receive a tax benefit from itemizing (46%) and how to adjust investments in case of potential increases in capital gains taxes (42%). Another two-in-five (42%) would also like to get professional advice on how to use annuities and life insurance products that may be less impacted by any increases in capital gains taxes.

“The survey shows consumers aren’t receiving the tax planning help they need for retirement, and as a result, they may be paying thousands of dollars more than needed,” said Henderson. “Financial professionals have a major gap to fill in educating clients on the best strategies to reduce unexpected taxes on combined income resources. By taking a holistic approach to financial planning, professionals can help more Americans save and achieve the retirement they want.”

To learn additional insights from Nationwide Retirement Institute’s Tax-Efficient Retirement Income survey, visit www.nationwide.com/lc/resources/investing-and-retirement/articles/tax-efficiency-survey-results.

Methodology
Nationwide commissioned The Harris Poll to conduct a 4-question online survey among 3,002 U.S. residents ages 18 and over. Millennials are comprised of respondents 25-40, Gen Xers are respondents 41-56 and boomers are 57+. Online fieldwork was completed between March 9 — 11, 2021.

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

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

What’s more, 61% of Americans report they would rather die than live in a nursing home, according to a new Nationwide Retirement Institute® Long-term Care survey conducted by The Harris Poll in September 2020 of 959 U.S. adults aged 24 or over and 308 caregivers aged 24 or over). The survey finds nearly half of these adults (48%) worry more now about the safety of nursing homes; this is especially true for Boomers+ (57%), as compared to 43% of Millennials and 41% of Gen Xers. In addition, around one in three Americans worry more now about being isolated and alone (35%), as well as worry more about being able to afford long-term care for themselves (30%) or a family member (30%).

“This is a very challenging time for caregivers. We recognize the strain the pandemic has put on all caregivers, and that they face unique emotional and financial challenges,” said Holly Snyder, president of Nationwide’s life insurance business. “Our survey found that Americans prefer to stay in their home for long-term care (71%) and most would like to have the option of relying on a family member if they needed long-term care (68%) but would not expect them to do so if they were unable to pay them (69%). Today, social isolation and health and safety concerns due to the pandemic have fueled people’s fear of being alone in a nursing home when they need long-term care.”

Caregivers in crisis
More than two thirds of current caregivers say the fear of their loved one (73%) or themselves (66%) getting sick has impacted their caregiving abilities. In fact, most current caregivers feel the pandemic has made it nearly impossible for them to complete their caregiving duties as they did before (62%) and has prevented them from providing the care they once did (54%).

In addition, many current caregivers feel they can’t afford to get sick because no one else can provide care for their loved one (72%). And concerningly, 1 in 5 current caregivers (20%) purposely have not had themselves or a loved one tested for COVID-19 out of fear they wouldn’t be able to provide care if the test was positive.

“The pandemic and its accompanying restrictions have put a strain on most current caregivers’ ability to provide customary care for their loved ones and the majority have taken a hit financially,” Snyder said. “In fact, our survey reveals more than six in 10 current caregivers (64%) say the pandemic has impacted their financial ability to provide care. However, many caregivers’ concerns expand beyond just financials and COVID-19 – nearly two-thirds of all caregivers (65%) don’t know what would happen to their loved one if they couldn’t provide care for them.”

What’s more, two-thirds of current caregivers (66%) feel social distancing and other restrictions in place have made their caregiving duties more difficult. These caregivers are worried they can’t protect those they care for from getting sick (73%) and two thirds (66%) are avoiding everyone so they can stay healthy and keep providing their caregiving duties.

Those balancing work and caregiving during the pandemic feel the financial and emotional burden. Sixty percent of current caregivers say it is more challenging to provide care while working from home, and 72% wish they had more help with their caregiving duties due to increased stress. Among all caregivers, they report spending an average of 30.2 hours a week and $5,724 annually on caregiving duties.

“Most adults (71%) would prefer to receive care in their own home for long-term care. In fact, half (50%) believe it is a family’s responsibility to provide care,” Snyder added. “That said, there is widespread concern among most adults that they will become a burden as they age (63%).”

Make a plan for long-term care
While most adults say the pandemic has made it more important than ever to have long-term care insurance (81%), not nearly as many have talked about long-term care with family members (41%) or have long-term care insurance in place (8%*).

“One of the greatest gifts you can give your loved ones is having a plan for when you need caregiving,” Snyder continued. “However, only 8% of Americans have talked to a financial professional about long-term care costs. Having informed discussions with financial professionals and using online tools can make long-term goals a reality and help Americans plan for the unexpected.”

Snyder says a silver lining from the pandemic could be that more of these conversations are starting to happen.

“Amid the uncertainty caused by the pandemic, it is more important than ever for adults and caregivers alike to have in-depth conversations with family members and financial professionals to ensure they are strategically planning for long-term care costs,” Snyder said. “The good news is that over 4 in 10 adults with a financial professional (44%) are working with him or her for the first time as a result of the COVID-19 pandemic – especially Millennials (70%) and Gen Xers (53%).”

To simplify this complicated issue and encourage discussions around health care and long-term costs in retirement, Nationwide’s Health Care/LTC Cost Assessment tool uses proprietary health risk analysis and updated actuarial cost data such as personal health and lifestyle information, health care costs, and medical coverage. It provides a meaningful, personalized cost estimate that will help financial professionals and clients plan for future medical and long-term care expenses.

To learn more about long-term care, visit www.nationwide.com/ltcinsights. Financial professionals can learn more at www.nationwidefinancial.com/ltcinsights.

Methodology
The 2020 Nationwide Retirement Institute Long-term Care survey was conducted online within the United States between Aug. 25 and Sept. 16, 2020 among 959 adults aged 24 and over by The Harris Poll on behalf of The Nationwide Retirement Institute. The survey also included 308 adults 24+ who are or have been caregivers. Caregivers are defined as those who have ever or are now providing paid or unpaid long-term care to a friend or family member, not through an agency, business, or non-governmental organization. Those who care(d) only for a child under 18 or a child over 18 born with a disability did not qualify as a caregiver for this survey.

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

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

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

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

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

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

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

Lack of prioritizing preventative care

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

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

Relying on financial professionals

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

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

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

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

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

Methodology

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

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

About The Harris Poll

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

Two 2020 surveys, conducted by The Harris Poll on behalf of The Nationwide Retirement Institute® both during and before the pandemic began, highlight concerns consumers have about Social Security. In fact, 63% think it is more important now than it was before to optimize Social Security and more than one in four who are eligible for Social Security (28 percent) say the pandemic has caused them to change their decision on when to file for benefits.

“Americans are facing complex retirement scenarios as a result of the COVID-19 pandemic and market volatility,” said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide. “On top of this, adults across generations lack a basic understanding of Social Security benefits and ways to maximize those benefits.”

Concern about saving enough and being financially prepared for retirement was present even before the pandemic. A majority of adults worried Social Security would run out of funding in their lifetime before COVID-19 (79% Millennials, 81% Gen Xers, 66% Boomers+), and many feel they will need to continue working because Social Security won’t pay enough (75% Millennials, 72% Gen Xers, 48% Boomers+).  

Better understanding of Social Security is needed

As consumers assess their plans for retirement, general misconceptions and uncertainty around Social Security need to be addressed to ensure adults plan effectively and can maximize benefits. Less than half of each generation are confident in their knowledge of Social Security (44% Millennials, 40% Gen Xers, 37% Boomers+). Common misconceptions and uncertainties include:

• The (incorrect) belief that if adults claim benefits early, their benefits will go up automatically when they reach full retirement age (Only 45% Millennials, 49% Gen Xers, and 69% Boomers+ correctly identify that this statement is false)
• Not understanding eligibility – nearly all Millennials (97%), most Gen Xers (90%), and over three in four Boomers+ (80%) incorrectly identify the age at which they are eligible for full benefits
• Fewer than one in ten adults know all of the factors that determine the maximum benefit (4% Millennials, 6% Gen Xers, 7% Boomers+)
• Half or more say they do not know how much of their income will be replaced in retirement by Social Security (49% Millennials, 49% Gen Xers, 57% Boomers+)

Americans believe the system needs to change

While two thirds of Millennials (67%), compared to 61% of Gen Xers and 51% of Boomers+, believe there will be cuts to Social Security under the current administration, funding isn’t the only concern.

A majority across each generation believes the Social Security system is in need of change (82% Millennials, 85% Gen Xers, 80% Boomers+). To keep Social Security financially viable in the future, most of them support ideas such as:

• Privatizing a small portion of Social Security benefits so people are free to invest that portion as they see fit (64% Millennials, 61% Gen Xers, 51% Boomers+)
• Applying cost of living increases for Social Security benefits only to lower- or middle-income households (62% Millennials, 70% Gen Xers, 63% Boomers+)
• Eliminating the payroll tax earnings cap, which limits the amount of income that can be taxed for Social Security (61% Millennials, 61% Gen Xers, 63% Boomers+)
• “Means testing” where people above a certain income threshold would receive no or reduced benefits (58% Millennials, 60% Gen Xers, 53% Boomers+)

The pandemic has consumers looking to financial professionals for guidance

Given the lack of knowledge of Social Security across generations, the need for guidance from financial professionals is significant.

Most are open to learning more about Social Security, particularly Millennials (94%) and Gen Xers (92%) (compared to 84% of Boomers+). Among them, 29% of Millennials, 25% of Gen Xers and 13% of Boomers+ would prefer to talk with a financial professional to learn more about Social Security. Further, most adults who either work with a financial advisor or plan to ask one about Social Security (86% Millennials, 93% Gen Xers and 74% Boomers+) say if a financial professional could not show them how to maximize their Social Security benefits, they would find one who could.

“With so much uncertainty, many people are looking for help in identifying ways to take better control of their finances. In fact, in an April poll we found that one in four adults (24%) say they have reached out to a financial professional for the first time as a result of the pandemic*,” Ambrozy said. “Preparing for retirement holistically by working with a financial professional and using online tools can help Americans better understand their options and achieve their retirement goals.”

Ambrozy adds that financial professionals can help consumers effectively and holistically prepare for the future by having more in-depth client conversations around understanding and maximizing Social Security benefits. The Nationwide Social Security 360 Analyzer® can help advisors assess a client’s goals to better advise on the optimal time to claim Social Security.

See how to make the most of your Social Security benefits at www.nationwide.com/ssinsights. Advisors can visit www.nationwidefinancial.com/ssinsights

Methodologies

The COVID-19 Social Security survey was conducted online within the United States between May 15-19, 2020 among 2,026 adults aged 18 and over by The Harris Poll on behalf of The Nationwide Retirement Institute via its Harris On Demand omnibus product.

Nationwide Retirement Institute’s seventh annual Social Security survey conducted February 19-March 6, 2020 among 1,727 U.S. adults age 24 or older who currently collect or plan to collect Social Security benefits.

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

About The Harris Poll

The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 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 2019 Tax-Efficient Retirement Income survey conducted online by The Harris Poll on behalf of The Nationwide Retirement Institute® among U.S. adults age 50+ who are currently retired or planning to retire in the next 10 years, a third of current retirees (35%) did not consider how taxes would affect their retirement income when planning for retirement. As a result, many express regrets, with a third of retirees (32%) reporting they wish they had better prepared for paying taxes in retirement.

“With many Americans already reviewing their finances while submitting their taxes, as well as assessing how COVID-19 has impacted their financial goals, it’s an ideal time to also examine their plans for taxes in retirement,” said Eric Henderson, president of Nationwide’s Annuity business. “The reality is many older adults are not considering or knowledgeable about taxes in retirement.”

The survey found two in five future retirees (38%) are terrified of what taxes will do to their retirement income, yet 35% rarely consider the taxes they are paying or will pay in retirement. Further, less than half of current retirees (43%) say they know how to leverage taxable, tax-deferred and tax-free accounts.

“While being in retirement can reduce or eliminate several expenses in older adults’ budgets, their tax bill may not be one of them,” Henderson added. “The data clearly illustrates that retirees aren’t always strategically preparing for – or even thinking about – taxes in retirement, and as a result, may be paying thousands of dollars more than needed.”

Building tax flexibility into a retirement income plan is crucial. Doing so allows older adults to use a variety of investment and retirement accounts (taxable, tax-deferred, and tax free) to potentially avoid higher tax brackets and effectively manage their income.

Older adults were concerned about retirement security before COVID-19

The 2019 survey reveals that older adults (50+) had concerns about various uncontrollable and controllable aspects of retirement that could threaten their financial security even before COVID-19 impacted financial plans. Top concerns in retirement among current and future retirees are health care costs (61% very/somewhat concerned), the impact of market volatility on retirement income (57%), planning for and potentially needing long-term care (56%), the impact of inflation on retirement income (55%), and not having enough money to cover unplanned medical expenses (48%).

“While we are all adjusting to our new environment, it’s difficult to gauge what could happen in the future, such as where the stock market is headed or what the impact of inflation will be in ten years,” said Henderson. “Therefore, consumers should focus on what they can control: building a strong financial plan that accounts for the unexpected, as well as optimizes tax strategies. By taking the right steps to plan for taxes in retirement, retirees can help offset potentially negative impacts to their retirement income.”

Due to COVID-19, many Americans are likely to withdraw money from their retirement plan early 

Roughly two in five Americans (38%) say the COVID-19 pandemic has impacted their retirement plans by having to retire later than planned, now not being able to retire at all or being forced into retirement. Plus, 41% are currently reevaluating their retirement plans to assess the financial impact of COVID-19. These are among the findings revealed by a new COVID-19 Tax Survey conducted online in May 2020 by The Harris Poll on behalf of The Nationwide Retirement Institute® among U.S. adults 18+.

When it comes to retirement income, 63% say it is more important now to develop a strategy to address taxes in retirement and 59% worry more now about what taxes will do to their income in retirement than they did before.

The CARES Act recently increased the 401(k)-withdrawal limit and eliminated the 10% early withdrawal and 20% federal tax withholding on early 401(k) withdrawals for those impacted by the crisis. Given the changes, two in five Americans with a 401(k) (39%) – including more than half of millennials (53%) – now say they are likely to withdraw money from their retirement plan early because of the pandemic.

Americans look to financial professionals for guidance as a result of the pandemic

It is important for consumers to know their options before dipping into their retirement savings, and data shows many Americans are now seeking help. The Nationwide Retirement Institute’s COVID-19 Financial Survey, conducted online in April 2020 by The Harris Poll among U.S. adults 18+, finds that roughly one quarter (24%) of Americans are seeking help by engaging a financial professional for the first time ever as a result of the pandemic.

Heightened uncertainty and complexity are driving a need for greater financial protection. Roughly half of Americans agree that the COVID-19 pandemic has made them recognize the need for annuities to protect their investments against market risk (47%) and to protect their retirement income (48%). More than half of all U.S. adults (57%) and investors (60%) also say the pandemic has made them recognize the need for life insurance.

“Americans are becoming more aware of how today’s life insurance options and products not only protect their loved ones, but also provide benefits like long-term care coverage and tax-free income while they’re alive,” said Troy Anderson, vice president of Individual Protection for Nationwide.

The survey also shows that financial professionals (37%) top the list of trusted sources for general financial and money management advice during the pandemic.

Financial professionals should work with clients to optimize taxes in retirement 

There is an opportunity for financial professionals to discuss tax planning in retirement and educate clients on the best strategies to reduce unexpected taxes on combined income sources – and retirees expect their financial professional to help. According to the 2019 Tax-Efficient Retirement Income survey, current and future retirees prefer using a financial professional to learn about retirement planning (57%) versus reading printed materials (46%) or doing independent research online (45%).

The need for this guidance from financial professionals is significant. Twenty percent of current and future retirees do not get tax planning advice from any sources, underscoring an important opportunity for financial professionals to work with clients. Further, 42% of future retirees would switch financial professionals for someone who could help them plan for their taxes in retirement. A financial professional can ask smart questions, help consumers effectively and holistically prepare for the future, and determine how to correctly use income sources to maximize retirement income and minimize taxes.

To learn more about Nationwide Retirement Institute’s Tax-Efficient Retirement Income survey, visit www.nationwidefinancial.com/RetirementIncomeSurvey.

Methodologies

The Tax-Efficient Retirement Income survey was conducted online by The Harris Poll on behalf of The Nationwide Retirement Institute between April 18 and May 7, 2019 among 1,301 U.S. adults age 50 or older who currently collect or plan to collect Social Security benefits, have at least $150K in investable assets, and are either currently retired or plan to retire within the next 10 years. Throughout the report, consumers who anticipate retiring within the next 10 years are referred to as "future retirees" to be more concise.

The COVID-19 Tax survey was conducted online within the United States between May 15-19, 2020 among 2,026 adults (aged 18 and over) by The Harris Poll on behalf of The Nationwide Retirement Institute via its Harris On Demand omnibus product.

The COVID-19 Financial survey was conducted online within the United States between April 8-10, 2020 among 2,042 adults (aged 18 and over) by The Harris Poll on behalf of The Nationwide Retirement Institute via its Harris On Demand omnibus product.

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

About The Harris Poll

The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 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.