Half of investors plan to work after retirement

Is ignorance bliss?

“The confusing economic environment we’re living in could lead some self-guided investors to be more optimistic than their counterparts who work with financial advisors because they are less familiar with the financial risks they will face in retirement,” said Guymon. “I think it’s likely that financial professionals are doing a better job of managing client expectations about uncertain realities of the road ahead. Regardless, this data shows that there is an opportunity for advisors to help calm nervous clients by reconfirming the importance of following their financial plan. And I would guess that many of those without an advisor could have some blind spots that a financial professional could help address before it’s too late.”

Tried-and-true solutions are serving investors amidst volatility

In an ever-changing world, non-retirees are turning to trustworthy solutions to strengthen their retirement planning. As a result, products that offer protection against market volatility and guaranteed income in retirement remain popular in financial planning. Annuities (71%) are the top choice for advisors protecting clients’ assets against market risks, followed by diversification and non-correlated assets (63%). Advisors are also moving cash on the sidelines for buying opportunities (42%) and relying on hedging strategies (41%) to protect against market risk.

Advisors and financial professionals are leading the annuity charge. Over half (54%) of investors with a financial advisor are incorporating annuities to protect against market risk, compared to just 30% of those without an advisor. Financial diversification and non-correlated assets are the most common strategies employed by both investors who have an advisor and those who do not (52% and 59%, respectively).

“Emerging tools and technologies may be helpful but could carry risk and uncertainty for the portfolios of DIY investors,” said Guymon. “At least for now, there is no real substitute for a trusted and qualified financial professional, who can help clients anticipate and plan for future challenges and tailor portfolios for specific needs. Advisors are also well positioned to help clients understand how protection solutions like annuities, which can offer income security and protection against market volatility, may fit into their plan.”

For additional insights on this survey data, visit https://nationwidefinancial.com/media/pdf/NFM-22656AO.pdf

Nationwide’s eighth annual Advisor Authority study powered by the Nationwide Retirement Institute® explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.


About Advisor Authority: Methodology
The eighth annual Advisory Authority Survey was conducted online within the United States by Harris Poll on behalf of Nationwide Advisory Solutions from July 27 – August 16, 2022 among 506 financial advisors and 521 investors with $10,000+ investable assets, ages 18+. Investors are weighted where necessary by age, gender, race/ethnicity, region, education, income, marital status, household size, investable assets and propensity to be online to bring them in line with their actual proportions in the population.