The Retirement Dilemma

Longer Life Expectancies

Today’s longer life expectancies mean you will likely spend more years in retirement.

Planning how you will fund those extra years takes on added importance.

Today, the average 65-year-old couple has a 52% chance that at least one spouse will reach the age of 95.(1)

Sources of Retirement Income

  • Earnings
  • Pensions*
  • Asset Income
  • Social Security
  • Other

A Shift In Responsibility

While pensions were once a reliable source of retirement income, the burden of funding retirement has shifted overwhelmingly to the individual.(2)

Regardless of whether you choose to fund your retirement years through a 401(k) or with other investments, you will most likely need to take a more active role in your retirement planning.

*Pensions include defined benefit and defined contribution plans.

Investment Fear

A recent survey of Nationwide® customers revealed that 83% are afraid of another financial crisis, and 62% are scared of investing in the stock market.(3)

Many of these individuals have their money sitting in cash while they look for investments that offer guarantees.

investment fear

According to another survey, almost 1/2 of households interviewed (61.5 million) stated that they would put most of their assets in an investment providing guaranteed income.(4)

In early 2015, the growing surplus of cash had reached

$11.2 trillion.(5)

Missed Opportunities

In recent years, many people who are concerned about market volatility but equally frustrated with low- or no-growth investment opportunities have been contributing to a growing surplus of cash.

However, positive market performance during that same time period means that many people missed out on the opportunity to invest their retirement savings with the potential for growth.

(1) Based on the Annuity 2012 Generational Mortality Table.

(2) Income of the Aged Chartbook, 2010 Social Security Administration, Office of Research, Evaluation & Statistics (October 2010)

(3) Fear of Financial Planning Survey, Nationwide Financial, conducted by Harris Interactive, 2013

(4) Strategic Business Insight 2010-2011 MacroMonitor.

(5) Federal Reserve, St. Louis Fed, Bankrate.com, J.P. Morgan Asset Management, 2015.