For many, the picture they had imagined for their retirement years has changed quite a bit. Whether out of financial necessity or the desire to stay involved and productive, plans to while away one's golden years on a sunny beach or the golf course may have reversed course.
According to Nationwide's eighth annual Advisor Authority survey, turbulent market conditions and persistent inflation are the main reasons behind developing a new retirement game plan. The report, powered by the Nationwide Retirement Institute, reveals that more than two-thirds (69%) of non-retired investors may continue working once they retire; and more than two-fifths of these investors (44%) say the decision to work will be financially necessary to supplement lackluster retirement savings.
Today's economic uncertainty is a driving force in shifting the mindset of investors, causing them to rethink their retirement game plan. For example, survey results show that two-fifths (40%) of non-retired investors plan to move to a different city or region after retiring, but not necessarily for the traditional retiree reasons: less than one quarter (22%) of respondents cite being near family as among their top three reasons for relocating. The most common reasons for today's soon-to-be retirees to relocate are to find a lower cost of living (43%) and lower taxes (34%), a strong indicator that macroeconomic factors are influencing decisions.
These new retirement trends are confirmed by financial advisors and professionals, with 78% of advisors reporting that their clients will or may continue to work post retirement. Important to note, however: Not all investors view working while retired as a financial necessity. According to the survey, 60% cite staying physically and mentally active as the reason, and 41% are striving to preserve a sense of purpose through continued employment.
No matter what lies ahead for the economy—good and bad—the survey underscores the need for prudent planning for retirement. A smart financial plan can help you ride the wave of a volatile economy and provide peace of mind. Nationwide recommends tried-and-true retirement strategies such as annuities, diversification, non-correlated assets and potentially moving some cash to the sidelines for buying opportunities. Before embarking on a strategy, however, consult a trusted financial professional to assess what makes the most sense for your individual circumstances.
