Retirees Worry About Security, Bills: Nationwide

What You Need to Know

A quarter of retired investors in the survey reported that they continue to pay off their mortgage.
More than 60% of respondents said they have a strategy in place to protect their assets against market risk.
Fifty-nine percent of advisors said their clients are confirming beneficiary designations to prepare their heirs.

New research from Nationwide finds that nearly a third of retired investors expect to be less secure in their retirement than their parents and grandparents were. A fifth of retirees worry about being able to pay their monthly bills.

“The picture of life after retirement has changed for many people as economic stressors continue to weigh on retired investors,” Mike Morrone, vice president of Nationwide Annuity Business Development, said in a statement. 

“Now is the time for advisors and financial professionals to check in with their clients and help them remain calm, nimble and informed in the face of continued economic headwinds, ensuring the plan they have in place continues to position them for a secure retirement.”

The Harris Poll conducted an online survey on Nationwide’s behalf in January among 518 advisors and financial professionals and 2,346 adult investors with investable assets of $10,000 or more. Investors included a subset of 391 people 55 to 65 who are not retired, and subsets of 346 single women and 726 married women.

Reevaluating Financial Commitments

Besides meeting short-term financial obligations like basic living expenses, 26% of retired investors in the survey reported that they continue to pay off their mortgage, and 25% said they are still paying down credit card debt.

A retirement of leisure and travel is not on the horizon for many retired investors who are having to adjust priorities to make ends meet in the wake of economic constraints, the survey found. 

Thirty-nine percent of retired respondents said they are spending less on entertainment to meet financial commitments in today’s economic environment, and 34% are taking fewer trips or vacations.

To compensate further, 22% of retired investors are drawing more funds from retirement accounts, intensifying the traditional decumulation stage, Nationwide said.

Retirees’ Strategies

As they confront financial headwinds, 63% of retired investors said they have a strategy in place to protect their assets against market risk, up from 54% last summer.

However, these retirement plans look different from the plans of generations past, according to Nationwide.