Advisor Clients More Nervous About Financial Futures, Survey Finds

They are more likely to say they will continue to work and are less confident about their financial futures, a Nationwide survey finds.

By Rethinking65

More than three-quarters of advisors (78%) say their clients will or may continue to work after retirement, a study says.

Among investors themselves, about two-thirds (69%) of those still working say they will or may continue to do so after retirement, and more than 40% of those investors say they’ll need to work to supplement their savings or income. The results were from Nationwide’s eighth annual Advisor Authority survey.

Interestingly, the survey found that non-retired investors who work with an advisor feel less confident about their financial futures than those who don’t. Nearly half (49%) of non-retired investors with a financial advisor said they are “very nervous” about spending down their retirement savings in today’s current market environment, compared with 32% of investors without an advisor.

Only one in five (20%) non-retired investors working with an advisor are confident about their post-retirement financial futures and are confident in their financial plans for retirement despite market volatility. Only 23% are taking steps to adjust their portfolios in light of recent market volatility.

Meanwhile, optimism was higher for working individuals who don’t have an advisor. The survey found 36% of them were confident in their post-retirement financial futures, 35% are confident in their financial plans for retirement despite volatility and 43% are taking steps to adjust their portfolio.

Rona Guymon, senior vice president of Nationwide Annuity Distribution, explained it this way in a press release: “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.”

“I think it’s likely that financial professionals are doing a better job of managing client expectations about uncertain realities of the road ahead,” she added. “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.”

The survey also showed that annuities (71%) are the top choice for advisors protecting clients’ assets against market risks, followed by diversification and non-correlated assets (63%).

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 ages 18+ with $10,000+ in investable assets.

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