Interest in retirement income grows among retirement plan participants & plan sponsors.

For many workers, an employer-sponsored retirement plan is so much more than just a way to save for the future. They see their 401(k) or similar defined contribution plan as a multi-purpose tool, where their savings not only have the potential to grow but can also generate income during retirement.

Nationwide recently polled a cross-section of retirement plan participants, plan sponsors and advisors to gauge interest and understanding of retirement income solutions. Both employees and employers see retirement income as important for building greater retirement confidence, while financial professionals can help plan sponsors better understand different retirement income options and select the right solutions for their participants.

Participants prefer to automate and simplify their retirement savings.

Many retirement plan participants take an active role in managing their retirement plan accounts and feel their retirement preparations are on the right track. Yet, there are steps retirement plan sponsors and advisors can take to help—over half of participants think managing their retirement plan savings is confusing, and three-quarters wish for simpler ways to convert their savings to retirement income.

Around 3 in 4
participants want an automatic way to convert their retirement plan savings into retirement income included in their plan.

Woman in her mid 30s sitting at a desk on her tablet, drinking from a mug.

Outside factors are shaping participants’ retirement outlook.

Even though many participants in general are optimistic about their plans and preparations, there’s significant concern about how their retirement income could be impacted by forces beyond their control, such as shifts in the markets or the economy.

70%

are concerned about the impact of inflation on their retirement income.

57%

are concerned about the impact of market volatility on their retirement income.

56%

are concerned about outliving their retirement income.

Woman wearing a black turtle neck sweater talking on her cell phone and smiling.

More education is great, but actionable solutions are better.

A majority of plan sponsors already provide educational resources to help participants continue to invest for retirement. But what’s needed now are solutions, that are simple and automatic, to help participants build confidence in their retirement plans.

Plan participants rate in-plan lifetime income investment options as the top solution that would increase confidence in their retirement plans and financial investments.

Lifetime income investment options – 50%
Protection from market volatility – 36%
Flexible withdrawal options – 29%

Help workers and employers increase retirement confidence.

For retirement plan advisors, advocating for and increasing adoption of in-plan retirement income solutions offer opportunities to help their plan sponsor clients deliver tangible benefits to their employee workforce, and help participants grow more confident in their retirement preparations. Retirement income also presents a business growth opportunity, helping advisors retain more plans and plan assets.

Among retirement plan sponsors, over half consider advice from a plan advisor or consultant as helpful in learning about in-plan lifetime income solutions, more than any other resource.

Learn more about in-plan lifetime income resources and solutions from Nationwide.

At Nationwide, we’re committed to helping more workers realize the goal of a more comfortable and secure retirement. That’s why we offer a suite of innovative in-plan lifetime income solutions that can be offered within workplace retirement plans. These investment options can help by simplifying investing, building confidence and promoting greater financial security in retirement.

Retirement plan financial professionals: Click here

Retirement plan sponsors: Click here

Source: The fourth annual Protected Retirement survey by the Nationwide Retirement Institute^®

Methology: Edelman Data and Intelligence (DXI) conducted a national online survey of n=600 US retirement plan sponsors, n=500 financial advisors, and n=2,600 US retirement plan participants on behalf of Nationwide from July 11 – July 26, 2024.

As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.

This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.

Guarantees are subject to the claims-paying ability of the issuing insurance company.

Provisions of these options may vary based on plan selection and/or by state regulation. These investment options may not be available in all states.

Federal income tax laws are complex and subject to change. The information is based on current interpretations of the law and is not guaranteed. Nationwide and its representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC.