Are investors’ retirement dreams turning into a nightmare

Are investors' retirement dreams turning into a nightmare?

For many Americans, the ideal picture of life in retirement includes relaxation, travel and embracing hobbies they were too busy to previously enjoy. But as the last few years of economic uncertainty and inflation continue to weigh on retired investors, many are having to adjust their preconceived notions for the new retirement reality they are facing.

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

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

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

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

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

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

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

This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company © 2024 Nationwide.
NFM-24059AO
07/2024