NATIONWIDE RETIREMENT INSTITUTE. Practical thought leadership to help you build client relationships. and your business

Transcription

1 NATIONWIDE RETIREMENT INSTITUTE Practical thought leadership to help you build client relationships and your business

2 4 out of 10 Americans believe that no matter how much they save and how they invest, they will not have enough money in retirement. Source: Nationwide Survey Healthcare and Long-term Care Study. Consumer study of U.S. adults ages 50+. November 2014.

3 The challenge is great, but so is the opportunity. Today, your clients face the uncertainty of market volatility and an increasingly complex set of challenges as they prepare for and live in retirement. In this environment, you need useful insights, actionable solutions and a partner with practical expertise. When it comes to planning for retirement, your clients look to you for guidance. That s why Nationwide created the Retirement Institute: to deliver practical thought leadership and comprehensive, client-ready solutions that help amplify your expertise.

4 Introducing a more comprehensive approach for tackling your clients retirement challenges Your clients face many challenges in planning for retirement and we offer resources to help. With these resources at your disposal, you are prepared to better understand complex issues, engage directly with your clients and answer questions every step of the way. This in turn, builds trust, leading to stronger, longer-lasting relationships and additional business-building opportunities. 2

5 Nationwide Retirement Institute Our comprehensive approach: EDUCATION & INSIGHTS ACTIONABLE TOOLS* CONSULTATIVE SUPPORT Spend less time doing research and more time creating solutions. The Retirement Institute offers a unique perspective based on internal expertise, proprietary research and respected industry thought leaders. This information is delivered in a way that makes it easy to comprehend and share with clients, sparking more productive conversations. Bridge the gap from knowledge to application. Our easy-to-use tools help you quantify client needs and identify sound options so you can work together to develop a more effective plan of action. Access a powerhouse of industry knowledge. The Retirement Institute s comprehensive support network leverages deep income planning and market expertise as well as years of industry experience. Whether working directly with you or helping you engage with your clients, they help put the breadth of Retirement Institute resources to work. Learn more: nationwidefinancial.com/nri * These tools may not be approved for use by all firms. Please check with your broker/dealer for access. 3

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7 Address clients most complex retirement challenges with greater confidence. Overcoming these challenges is critical when it comes to effective retirement planning. Stand out as an indispensable resource for your clients by leveraging the full suite of insights, tools and consultative support available with each dedicated program. Retirement Income Social Security Health Care Long-term Care 5

8 Retirement Income From now until 2030, an average of 10,000 boomers will turn 65 each day. Even though a formal retirement plan is the biggest factor for how confident your clients feel about their retirement security, only 3 out of 10 clients working with advisors actually have one in place. That s why it s more important than ever to help your clients create an income plan that will help them live on their terms throughout retirement. Source: 2015 The Retirement Income Reference Book using 2014 data, LIMRA, Secure Retirement Institute. 3 out 4 of pre-retirees make investments with advisors who provide them with a retirement income plan. 6 Source: LIMRA, Retirement Confidence and Security; Experiences, Expectations, and Benefits of Planning, 2014 study.

9 Education & insights Developing a sustainable income plan for your clients is not easy. Each client has unique needs and expectations as well as varying comfort levels discussing key retirement decisions. Our education platform enables you to: Help clients differentiate between essential and discretionary income needs Address clients concerns about the risks from market volatility, inflation and outliving their money Compare a time-segmented approach with other retirement income strategies, such as systematic withdrawal Actionable tools* RetireSense, our proprietary investment and draw-down strategy, was developed from years of research and industry best practices. It provides your clients with: A time-segmented roadmap for selecting and harvesting a strategic allocation of investments A strategy for growing and protecting assets while drawing income A customized client report that includes probability of achieving target income success Consultative support We have a highly-credentialed team of income specialists, who are ready to help: Conduct in-office client seminars Consult on special consideration cases Develop investment and distribution strategies Learn more: nationwidefinancial.com/retirementincome 7

10 Social Security Practically all of your clients face the personal decision of when and how to file for Social Security something that can have a big impact on their financial standing throughout retirement. Your opportunity is to help them consider the facts, make the right decision for their situation and connect your recommendations to a comprehensive retirement income plan that best meets their needs. 57 % of clients expect Social Security advice from their financial advisor. Source: The Emerging Cornerstone of Financial Practices, Social Security Timing, 2013 survey of 508 couples. 93 % of those would leave their advisor if they don t receive it. 8

11 Education & insights Social Security can provide a foundation for income in retirement; in fact, for most retirees it may represent almost 43% of their annual retirement income. Source: 2015 The Retirement Income Reference Book using 2014 data, LIMRA, Secure Retirement Institute. Our easy-to-use materials help you: Familiarize clients with basic terminology and rules needed to understand benefits and work with the Social Security Administration Explain filing strategy basics, such as the impact of longevity on lifetime value, and how to leverage spousal/survivor benefits Address concerns about the uncertain future of Social Security Actionable tools* Created by a financial advisor, our Social Security 360 Analyzer tool received the 2014 Technology Innovation award from the Bank Insurance and Securities Association. The tool: Accounts for complexity of benefits for clients who are married, divorced, widowed, still working, have already filed or have pensions not covered by Social Security Identifies optimal and alternate filing strategy options to meet your clients unique situations Positions Social Security in the context of an overall retirement income plan Generates a personalized client report to facilitate planning discussions Consultative support With over 2,700 rules in the Social Security handbook, it s difficult to have all the answers. Nationwide can help prepare you to handle whatever questions come your way. Our knowledgeable team offers: Help with complex life scenarios such as clients who have been married multiple times or those who want to work in retirement Help to incorporate the filing strategy into an overall income plan Product education to help fill income gaps Learn more: nationwidefinancial.com/socialsecurity 9

12 Health Care Almost 86% of pre-retirees have underestimated or don t know what their retirement health care costs will be. With Medicare annual growth projected at 7% through 2023, these are numbers they need to understand. Our health care program helps you better estimate your clients Medicare, out-of-pocket and long-term care costs, then put a plan in place to cover those expenses. Source: Centers for Medicare and Medicaid Services, Most retirees say paying for health care is their 1# retirement concern. Source: Amount of Savings Needed for Health Expenses for People Eligible for Medicare: Good News Not So Rare Anymore, EBRI, October,

13 Education & insights There are many misconceptions about Medicare. Many clients think it will cover them completely. Our client-friendly materials can help you: Explain what Medicare covers, and more importantly, what it doesn t Highlight the key differences and premiums for Medicare parts A, B and D Discuss realistic expectations for out-of-pocket medical expenses throughout retirement Actionable tools* The Nationwide Health Care Cost Assessment gives you the ability to estimate what your clients can expect to pay for health care in retirement. Our tool: Personalizes the estimate based on lifestyle, health history and geographic location Is powered by calculations from one of the world s leading actuarial firms Includes separate estimates for Medicare premiums, out-of-pocket costs and long-term care costs Consultative support A personalized estimate of retiree health care costs is the start of an effective plan for covering those costs. Our Income Planning Team can help: Run Health Care Cost Assessment reports for your clients Equip you to get clients past the sticker shock of their future health care bill and start planning Educate you on product solutions to cover expenses Learn more: nationwidefinancial.com/healthcare 11

14 Long-term Care Long-term care can be a difficult topic for advisors to discuss with their clients. In fact, 53% of clients say it s important their financial advisor talks to them about health care costs in retirement but only 10% have actually had that conversation. Clients need advice on long-term care and are turning to their advisor for direction. Our program helps advisors start the long-term care conversation, estimate costs for different care options and show different types of products that can help offset those costs. Source: The Nationwide Retirement Institute Fourth Annual Health Care and Long-term Care Survey, October out 10 of individuals over age 65 will need long-term care at some point during retirement, but less than 8 % have a plan for it. Source: Medicare & You, Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value

15 Education & insights When clients hear the words long-term care they instinctively think nursing home. Yet, more than half of long-term care is provided in-home. We can help position the conversation around keeping clients in their homes longer. Our educational materials and interactive discussion guide can help you: Explain what conditions qualify someone to receive long-term care Address misperceptions of how long-term care is paid for Identify types of care, and the pros and cons of each Source: American Association for Long-term Care Insurance (AALTCI) 2014 Sourcebook. Actionable tools Long-term care costs are expected to nearly quadruple by The Nationwide Health Care Cost Assessment can help you estimate your clients future costs as a crucial step in making sure your clients have a plan in place to cover these expenses. Our tool enables you to: Compare annual costs for three types of care: home health care, assisted living facility and nursing home Give clients a cost estimate based on geographic location of where long-term care will be given Show current costs for care compared with potential future costs Source: Assuming 4.0% annual inflation for the next 30 years, Genworth Cost of Care Survey, Consultative support Our team can help you help your clients choose the best way to cover long-term care expenses by: Providing you different ways to start the long-term care conversation with clients Explaining options to fund long-term care plans, including annuities, IRAs and self-funding with cash Comparing features of long-term care products including stand-alone, linked benefit, reimbursement and indemnity coverage Learn more: nationwidefinancial.com/longtermcare 13

16 Personalize and strengthen the client-planning process. Our focused programs and tools help you tailor plans to your clients unique retirement needs and goals. Capital markets insights and perspectives Market forces are dynamic. When they shift, being prepared for the conversations you would like to have with your clients can be a challenge. Nationwide Market Insights SM, our capital markets flip book, presents market insights accompanied by informative charts and commentary. Use it directly with your clients to build confidence in your recommendations. Health Care: Affordable Care Act Only 1/3 of Americans are confident they understand the benefits and consequences of the ACA. This is an opportunity to discuss its impact on financial investment decisions with your clients Nationwide offers education guides and presentations to help advisors understand and discuss these impacts with individual clients and small business owners. Source: Healthcare and Long Term Care Study Among U.S. Adults Ages 50 and Older. Nationwide. October Annual Tax Guide Every year, your clients face an evolving tax picture. You have the opportunity to help them prepare for taxes now and in the future, and invest efficiently. Nationwide offers a clientready tax kit, containing useful tips and tools, that is updated annually. Working with women investors About 96% of women either make their own financial decisions, or share in the household s, making them a critical audience for advisors. Our Women & Investing program offers presentations and marketing materials to help you communicate more effectively with this audience, and suggest product solutions aligned with specific needs and goals. Source: Ameriprise Financial, June 2014, Women and Financial Power study Succession planning for farmers Roughly 98% of farms today are family owned. With the average age of a farmer at 57+, succession planning is critically important. Land As Your Legacy is a program to help farmers and ranchers secure their businesses for the future, providing agriculture seminar speakers, in-depth clientplanning materials and transition-planning guidance. Source: United States Department of Agriculture. Learn more: nationwidefinancial.com/nri 14

17 Interactive tools* Fund Evaluator Tool SM Supports advisors with analysis of fund performance by investment product, asset class and Morningstar category using raw financial data My Interactive Retirement Planner SM Helps individual investors and plan participants estimate retirement readiness against goals and track progress Investment Solutions Builder Helps Registered Investment Advisers build and manage core fund lineups, and create and maintain plan-level asset allocation models 15

18 Work with Nationwide consultative support teams to implement programs and solutions. When helping your clients plan for retirement, you never have to go it alone. To connect with these teams, contact your wholesaler. Thought Leadership Consultants An experienced group of income and retirement planning specialists who: Present at industry conferences on all topics Provide continuing education training Conduct advisor and client seminars Deliver perspective on relevant product solutions Income Planning Team An internal team of income-planning professionals who: Assist with leveraging strategy and tool outputs to drive effective client conversations Create case design options for unique client scenarios Provide ongoing advisor support for general income-planning needs Advanced Consulting Group A diverse group of JDs, CPAs and other highly trained financial service professionals who: Speak at conferences and events Provide complex case consultation Monitor and provide perspective on legislative and regulatory developments Nationwide Economics A highly credentialed team of economists who: Provide timely and relevant information on economic and market trends Deliver presentations and economic updates to select audiences Influence Nationwide s business strategies and investment decisions 16

19 Get started. Please contact your Nationwide wholesaler, relationship manager or call the Income Planning Team today at to see how the Retirement Institute can help you build relationships and your business.

20 Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value This material is not a recommendation to buy, sell, hold, or rollover any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. Investors should work with their financial professional to discuss their specific situation. * These tools may not be approved for use by all firms. Please check with your broker/dealer for access. Nationwide Investment Services Corporation (NISC), member FINRA. The Nationwide Retirement Institute is a division of NISC. Social Security 360 Analyzer is a service mark of Nationwide Life Insurance Company. Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide Retirement Institute, RetireSense, Fund Evaluator Tool, My Interactive Retirement Planner and Investment Solutions Builder are service marks of the Nationwide Mutual Insurance Company Nationwide NFM-12431AO.6 (04/17)