Market volatility, recession fears, tariff uncertainties and other macroeconomic factors are driving many investors to rethink their long-term retirement and financial plans.
Investors feel the pressure of rising living costs, taxes and inflation, and are reassessing their savings strategies and overall retirement timelines. Their paramount concern is to ensure their financial security as retirement approaches – but this is no easy task as multiple considerations are at play. According to a Nationwide survey, one in three investors believe it doesn’t make financial sense to retire in their current location, highlighting a growing trend of retirees rethinking where – and how – they’ll spend their later years.
This change has a big impact on distributors, agents and advisors, creating a need for new strategies to keep up with shifting financial planning trends. The life and annuity sector has a chance to offer simpler financial products and digital tools to make things clearer for clients. To do this effectively, however, the industry must transform, update and enhance its processes.
With growing concerns around retirement, 79% of Americans agree that there is indeed a “retirement crisis.” Inflation plays a key part, with 73% of Americans stating that “recent inflation has them more concerned about retirement.” According to the recent State of Retirement and Today’s Workforce survey, “64% anticipate issues pertaining to having enough money to afford normal life expenses and the things they will want to do in retirement.”
Considering these worries, it’s understandable that investors are putting all their cards on the table and reconsidering relocation options – with the goal of improving their retirement finances. According to the Nationwide survey, 32% of investors do not believe that their current location is financially sensible for retirement. This is particularly true in the Northeastern and Western U.S. Although there are regional variations, one underlying fact remains – retirement is a significant concern for many Americans currently, and it’s forcing investors to look into various options.
At the same time, ongoing demographic shifts highlighted by the “Peak 65” trend make planning even more urgent. Peak 65 marks the historic surge of Americans reaching retirement age in the U.S., driving major changes in retirement planning and financial strategies.