Nationwide encourages Americans to plan for longer retirement horizons
Offers tips and resources for consumers during National Retirement Planning Week
COLUMBUS, Ohio— Are you financially prepared to live for 20 or more years in retirement? A recent study found that a 65-year-old married couple has a 72 percent chance that one spouse will live to 85, and a 45 percent chance one will live to 90.1 As life expectancies increase, so does the amount of money that retirees will need to support themselves when they leave the workplace.
National Retirement Planning Week, which takes place Nov. 12-16, offers the opportunity for workers to evaluate their situation and take steps to help ensure that their financial strategy will provide them with enough income to last throughout their retirement years.
“It’s becoming likely that many Americans will spend as much time in retirement as they did in their jobs,” said Eric Henderson, senior vice president of Nationwide Financial’s Individual
Investments Group. “However, with the proper financial planning, workers can help ensure that they are prepared even if their retirement ends up lasting longer than they had initially expected”
Henderson says that workers should be aware of several risks that are associated with longer retirement horizons:
- Rising health care costs – In the 2007 Health Confidence Survey, 30 percent of people said that they have had to decrease their contributions to retirement plans to pay for the increasing cost of their health care.2
- Uncertain future of Social Security – As more than 70 million baby boomers move toward retirement, greater pressure will be placed on the Social Security system than ever before.3
- Longevity risk– With Social Security in jeopardy, health care costs on the rise and people living longer, many workers could be in danger of outliving their retirement assets.
Henderson offers Americans the following tips that can help them stay on track for a healthy retirement:
1. Find out where you stand – According to the National Retirement Risk Index, 44 percent of Americans are in danger of being unable to maintain their pre-retirement standard of living during retirement.4 Nationwide’s RetirAbility CheckSM, available at www.nationwide.com/rscore, is a free and interactive online resource that can provide you with a personal retirement readiness score and tips on improving your situation.
2. Talk it through – How one chooses to prepare for retirement is as big a financial decision as purchasing a home or saving for college. However, 22 percent of people say they avoid having retirement planning conversations with their families because it will likely end in conflict.5 HaveTheTalkAmerica.com provides tips and tools that can help people have these difficult conversations with their loved ones, and includes a bit of humor to help break the ice.
3. Consult a professional – Taking the time to plan for your retirement now can make a huge difference down the road. An investment professional can help you evaluate your retirement goals and develop an investment strategy to meet your needs. They can also help create a diversified portfolio that includes products designed to provide you with a guaranteed stream of income throughout retirement. Visit www.nationwide.com for tips on how to choose an investment professional who may be right for you.
For more information about National Retirement Planning Week visit www.RetireOnYourTerms.org.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest6 and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.
It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 104 on the Fortune 500 based on 2006 revenue.7 For more information, visit www.nationwide.com.
Nationwide, Nationwide Financial, the Nationwide Framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Have The Talk is a federally registered service mark of Nationwide Mutual Insurance Company.
1 Society of Actuaries
2 Employee Benefit Research Institute
3 National Retirement Planning Coalition
4 Center for Retirement Research at Boston College, National Retirement Risk Index, 2007
5 Nationwide’s “Tough Talks” Survey, 2007
6 Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH
7 Fortune Magazine, April 2007