Nationwide’s Ninth Annual Advisor Authority Survey Reveals Changing Retirement Expectations and Financial Concerns

Retirement planning has always been a daunting task, but according to Nationwide’s ninth annual Advisor Authority survey, the landscape has become even more uncertain in recent years. The survey found that 61 percent of investors have seen significant changes in their retirement expectations over the past five years, with almost half reporting that their retirement plans have been delayed, altered, or even canceled due to economic conditions.

One of the most striking findings of the survey is that only 38 percent of investors currently have a retirement savings goal. Of those who do have a goal, many are aiming high, with 42 percent believing they will need between $1 million and $2 million to retire comfortably, and 18 percent thinking they will need more than $2 million.

Rona Guymon, senior vice president of Nationwide Annuity Distribution, emphasizes the importance of holistic financial planning with an adviser to navigate the uncertainties of retirement savings. She notes that while having a savings goal is important, it’s crucial to consider variables such as spending habits, health, debt levels, and location when planning for retirement.

The survey also sheds light on the most common sources of concern for investors approaching retirement age. Basic living expenses, health-related costs, and supplemental health insurance are top worries for those aged 55 and older. As a result, many have cut back on spending in areas such as luxury goods, leisure, entertainment, and vacations.

Fears of a recession are prevalent among survey participants, with many expressing concerns about the U.S. economic outlook in the coming years. Despite these worries, Mark Hackett, chief of investment research at Nationwide Financial, advises investors to focus on what they can control and work with their advisers to align their long-term financial plans with their retirement goals.

Financial advisers are also feeling the impact of rising costs of living on their clients’ retirement planning strategies. Many are turning to annuities, diversification, and liquid alternatives to help protect their clients’ assets against market risk.

In conclusion, the Nationwide Advisor Authority survey highlights the challenges and uncertainties facing investors as they plan for retirement. By working closely with financial advisers and taking a holistic approach to financial planning, individuals can better navigate the ever-changing landscape of retirement savings and ensure a more secure financial future.