Financial professionals help recent retirees adjust to life in retirement

Key takeaways:

• As recent retirees adjust to the financial realities of retirement, many have regrets about how they saved during their working years. 
• Market volatility and the loss of earned income from employment are two of the biggest challenges recent retirees face.
• Many recent retirees are engaged with their financial professionals to help them adjust their strategies to counter market and longevity risk.

1/30/2026 — New retirees often enter retirement feeling optimistic about the years ahead, but many are also surprised by financial challenges they hadn’t expected. As a result, this can contribute to worries about how quickly they are spending down their savings and whether it will last over a long retirement.

The financial realities of retirement lead many new retirees to wish they had followed a different approach to saving and investing. A Nationwide Retirement Institute^® survey of recent retirees—those who have retired in the last five years—found that over half (55%) have regrets about how they saved for retirement. Around three in ten (28%) wished they began saving earlier in life and 13% wished they had saved more during their working years. 

The insights from our survey reveal an important truth: retirement planning isn’t just about setting a number. While these kinds of targets can be valuable to clients, so is following a strategy that anticipates life’s changes and keeps clients financially secure throughout retirement, no matter how long it lasts. These survey results highlight opportunities for financial professionals to help both recently retired clients and younger savers plan for a smooth transition into retirement.

Where recent retirees need help the most

The transition from working life to retirement requires clients to rethink their finances. Without the assurance that comes with a steady paycheck, new retirees can fixate on where they’ll draw their income, how much it will change and how long it will last. 

As possible evidence of the struggles many recently retired clients face with the transition to retirement, just 40% of those surveyed said they’re on track with their original budget and decumulation plan for retirement. Around one-fifth (21%) have adjusted their spending habits, becoming more conservative than they had expected before retirement.

Financial professionals are in an ideal position to help recently retired clients manage their retirement transition. As part of our survey, we asked them to identify the challenges their recently retired clients have faced during their first two years of retirement. It’s not surprising to see the most common challenge (cited by 60% of financial professionals) was the absence of employment and earned income.

Volatile markets raise income risk for recent retirees

Market volatility is also proving to be a challenge for new retirees who are living off their invested savings. Many clients realize a significant drop in the market at the start of  retirement can have a cascading effect on their retirement income plans. 

Recent retirees are making moves with their savings as a result of increased market volatility. Around half of recent retirees (47%) say recent market volatility has impacted the way they approach managing their portfolio and withdrawing or spending down their savings in retirement. And about the same number of recent retirees (50%) made changes to their retirement portfolio due to recent market turbulence.

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It’s encouraging to see that recent retirees are engaged with their financial professionals and their financial plans during the critical transition years into retirement. More than half of financial professionals (56%) say their recently retired clients review their portfolio and financial plan at least monthly.

Guidance from a trusted financial professional can make a difference for clients between feeling uncertain and feeling confident about their financial futures.

Responding to the challenges recent retirees face

Financial professionals are adapting their approach to meet the unique needs of recent retirees. Many are bringing greater focus to the key concerns of their retired clients.

The rise in market volatility over the past year is one catalyst for financial professionals to take action. An overwhelming majority of financial professionals (85%) have recommended changes to their clients' decumulation strategies in response to recent market conditions and nearly half (45%) made significant changes across most of their recent retiree clients’ decumulation strategies.

Economic pressures are also encouraging financial professionals to suggest changes to their recently retired clients. Many recognize that rising costs for essentials and health care have increased uncertainty and stress among their retired clients. 

Guaranteed income solutions like annuities can be powerful tools in helping clients adjust to changing economic conditions throughout retirement. Nearly nine in ten financial professionals (87%) say they increased their focus on identifying guaranteed income solutions for their clients over the last year.

Find the support you need to help recently retired clients

Clients value the guidance that financial professionals bring to their retirement plans. You have an essential role to play in the early years of retirement, helping new retirees navigate their financial realities and adjust strategies as retirement unfolds. 

Through the guidance you offer as a financial professional, you can help your clients assess their retirement income needs and explore guaranteed lifetime income solutions designed to counter the risk of depleting savings too early. Nationwide is ready to support you with resources and tools you can use in your planning discussions with clients, followed by solutions that meets your clients’ income needs in early and later retirement.

With professional guidance, recent retirees can feel confident their plan supports both today’s needs and tomorrow’s possibilities.