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Data & Research June 21, 2023
One-Quarter of Pre-Retirees Expect to Delay Retirement, According to Nationwide
An additional 15% are unsure if they will ever be able to retire.
Reported by Natalie Lin
One-quarter of pre-retirees, defined as non-retired investors aged 55 to 65, are planning to retire later than they had expected, and another 15% are unsure if they will ever retire, according to Nationwide’s eighth annual Advisor Authority survey from the Nationwide Retirement Institute.
Considering the immediate challenges to their retirement portfolios anticipated in the next 12 months, the majority of pre-retirees (60%) cited inflation as a primary concern. Other factors they cited as immediate challenges included an economic recession (46%), market volatility (36%) and taxes (23%).
More than half of pre-retirees (53%) expressed concerns about the long-term sustainability of Social Security, fearing these benefits may not be available during retirement. Among respondents, 26% said they believe Social Security funds will deplete within their lifetime, and another 26% anticipate it will deplete after they have already retired.
More investors are seeking guidance from financial professionals to navigate their retirement preparations. Of those surveyed, 49% currently work with an adviser or financial professional, with 40% having started this engagement within the past year.
“With economic stressors continuing to weigh on the minds of investors, working with an adviser has never been more important to achieving security in retirement,” Eric Henderson, president of Nationwide Annuity, said in a statement. “Because the trajectory of the markets and the economy look uncertain in the short term, an adviser can help investors who are nearing retirement age remain calm, nimble and informed when it comes to adjusting their plans.”
On the other side of the equation, almost half of adviser respondents (48%) are helping their pre-retiree clients by implementing strategies to safeguard their assets against market risks, while 42% of advisers surveyed said they helped clients ensure sufficient liquidity for two years of expenses in case of a financial crisis.
“Advisers recognize investors’ desire to make the right moves as they near retirement,” said Henderson in the statement. “They can start driving positive conversations with these clients by understanding their retirement goals, helping them predict and plan for fixed expenses and determining the right time to claim Social Security.”
Nationwide’s research was conducted from January 4 to 13, surveying 511 advisers and financial professionals, as well as 789 investors aged 18 or older with investable assets of $10,000+.
