After decades of planning, investors close to retirement age are delaying their retirement plans in light of today’s rising inflation, high interest rates and unstable economic environment, according to Nationwide’s eighth annual Advisor Authority survey, powered by the Nationwide Retirement Institute. A quarter (25%) of pre-retirees – defined as non-retired investors aged 55-65 – are planning to retire later than expected, and another 15% are unsure if they will ever retire.
In today’s landscape, pre-retirees are in a unique and challenging position. Although a number of factors are contributing to their decision to delay retirement, the majority (60%) said inflation poses the greatest immediate challenge to their retirement portfolio over the next 12 months. An economic recession (46%), market volatility (36%) and taxes (23%) are also factors that pose immediate challenges to their retirement portfolio.
“With economic stressors continuing to weigh on the minds of investors, working with an advisor has never been more important to achieving security in retirement,” said Eric Henderson, President of Nationwide Annuity. “Because the trajectory of the markets and the economy looks uncertain in the short term, an advisor can help investors who are nearing retirement age remain calm, nimble and informed when it comes to adjusting their plans.”
The stability of Social Security is in question
Over half (53%) of pre-retirees are concerned about the long-term viability of Social Security, indicating fears that these benefits will no longer be available to them in retirement. More than one in four (26%) pre-retiree investors believe Social Security will run out of funds in their lifetime, with the same number (26%) believing Social Security will run out of funds after they have entered retirement.
These fears are not unwarranted – the likelihood of Social Security running out is slowly becoming a possibility. According to the 2023 Old Age, Survivors, and…
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