Nationwide Survey Reveals Changing Retirement Expectations and Savings Targets

Retirement planning can be a daunting task, especially in today’s uncertain economic climate. The results of Nationwide’s ninth annual Advisor Authority survey shed light on the changing retirement expectations of investors and the challenges they face in reaching their financial goals.

According to the survey, 61 percent of investors have seen significant changes in their retirement expectations over the past five years. Nearly half of investors have had to delay, alter, or even cancel their retirement plans due to economic conditions. This uncertainty is reflected in the fact that only 38 percent of investors currently have a retirement savings goal.

For those investors who do have a goal, the numbers can be intimidating. Forty-two percent believe they will need between $1 million and $2 million to retire comfortably, while 18 percent think they will need more than $2 million. These high figures can be discouraging, but it’s important to remember that everyone’s retirement needs are different.

Rona Guymon, senior vice president of Nationwide Annuity Distribution, emphasizes the importance of holistic financial planning with an adviser to ensure a comfortable retirement. While having a savings goal is a good start, it’s essential to consider variables such as spending habits, health, debt levels, and location when planning for retirement.

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

Fears of a recession are prevalent among investors, with many citing concerns about the U.S. economic outlook. Despite these worries, it’s crucial for investors to focus on what they can control and work with their advisers to adjust their long-term plans accordingly.

Financial advisers have also seen shifts in their clients’ retirement planning strategies, with rising costs of living prompting reevaluation of financial goals. Annuities, diversification, and liquid alternatives are among the tools advisers are using to help clients protect their assets against market risk.

In conclusion, the findings of Nationwide’s survey underscore the importance of proactive retirement planning and working closely with a financial adviser to navigate the challenges of today’s economic landscape. By taking a holistic approach to financial planning and staying informed about market trends, investors can better position themselves for a secure and comfortable retirement.