Financial Advisers Witness Shift in Retirement Strategies Among Clients

Financial advisers are witnessing a shift in retirement strategies among their clients, with nearly half embracing unconventional approaches that differ significantly from previous generations, according to Nationwide’s Advisor Authority survey. To combat market volatility, advisers are implementing various tactics such as using annuities, diversifying with non-correlated assets, and incorporating liquid alternatives like mutual bonds or ETFs.

However, the survey also revealed that clients are resorting to risky methods to meet financial obligations during retirement. Some are tapping into retirement accounts, liquidating assets, or even choosing to live with adult children. This trend reflects a changing landscape in retirement planning, driven by consumer preferences, legislation like the SECURE Act, and technological advancements.

Nate Moody, a partner and retirement plan adviser, believes this shift is more of a natural evolution rather than a generational change. He notes that workplace retirement plans now offer lower fees compared to individual retirement accounts, and recent legislation has made in-plan annuity options more accessible. Additionally, technological innovations have made it easier for individuals to manage their retirement savings and withdrawals.

With inflation and other financial stressors impacting investors, advisers are offering strategic solutions to help clients prepare for retirement. Nearly half of advisers report that rising expenses have prompted clients to rethink their retirement plans. Ron Guymon, senior vice president of Nationwide Annuity Distribution, emphasizes the importance of having a trusted adviser to guide clients through these uncertain times.

The research, conducted by The Harris Poll on behalf of Nationwide, sheds light on the evolving landscape of retirement planning and the need for adaptive strategies to ensure financial security in retirement.