Social Security 4 th Annual Consumer Survey

Transcription

1 NATIONWIDE RETIREMENT INSTITUTE Social Security 4 th Annual Consumer Survey September 2017

2 There s a need for greater Social Security understanding and education 91% 91% don t know what factors determine the maximum Social Security benefit they can receive 4 in 10 future retirees say that they don t know, or incorrectly believe, that nothing is withheld from Social Security payments 2

3 Future retirees expectations don t always match the reality of those living in retirement 65 vs 62 Future retirees anticipate beginning to collect Social Security three years later than when current retirees actually do (age 65 vs. age 62) Recent retirees 25% Retired 10+ years 23% About a quarter of retirees say their Social Security payments are either less or much less than expected 26% Over a quarter of retirees say that they are not able to do the things they want in retirement 3

4 A quarter of retirees either aren t sure or would change the age they began drawing benefits Of those who would not change their filing decision, the following life events are the most common reasons for filing when they did: Retired earlier than planned 24% Needed the money 19% Health problems 18% Didn t think they d live long enough to be worth optimizing 15% 4

5 Health problems often interfere with life in retirement and those expenses are vastly underestimated 1/3 of retirees say health problems interfere with living in retirement and of those, 75% say health problems occurred sooner than expected typically by 5 years or more 64% Future retirees expect to spend 20% of their Social Security income on health care expenses 20% However, retirees who file at 62 could spend about 64% of their Social Security income on health care expenses 1 1 Analysis from the Nationwide Retirement Institute Social Security 360 Analyzer and Health Care Cost Assessment, Assumptions used were: a 62-year-old couple, living in Ohio, with life expectancies of 85 for a male and 88 for a female. 5

6 Future retirees have a lot of concern regarding the short and long-term future of Social Security 63% are concerned about potential cuts under the current administration 78% worry that Social Security funding will run out in their lifetime 6

7 Very few are receiving Social Security advice from a financial advisor Only 1/3 say they currently work with a financial advisor Less than 1 in 5 have a financial advisor who provides advice on Social Security 79% of future retirees say they are likely to switch financial advisors to maximize their Social Security benefits in the future 7

8 Working with a financial advisor can help Those collecting Social Security and working with a financial advisor report receiving almost 20% more in benefits than those not working with a financial advisor Social Security income $1,584 $1,290 Those who work with a financial advisor are more likely to say: They were able to do the things they wanted when they retired Work with a financial advisor Do not work with a financial advisor 87% 65% They wouldn t change their drawing decision 85% 66% Those who work with a financial advisor are less likely to say: Work with a financial advisor Do not work with a financial advisor Their payment is less or much less than they expected 12% 35% Health problems kept them from living the retirement they expected 25% 39% 8

9 CLIENTS Work with your financial advisor to help prepare you to make the best decisions when it comes to Social Security. ADVISORS To learn more about Nationwide s Social Security 360 program and Analyzer tool, call the Retirement Institute Income Planning team at

10 Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any government agency May lose value Social Security Consumer Survey conducted by Harris Poll on behalf of the Nationwide Retirement Institute, This survey was conducted online from May 26 June 6, 2017 with 1,012 US adults aged 50 or older, including: Future Retirees consumers aged 50+ who plan to retire in the next ten years (338 survey respondents). Recent Retirees consumers aged 50+ who retired within the past ten years (336 survey respondents). 10+ Retirees consumers aged 50+ who retired more than ten years ago (338 survey respondents). The term older adults refers to results of all three groups combined. The term retirees refers to Future Retirees and 10+ Retirees groups combined. This material is not a recommendation to buy, sell, hold or roll over 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. This information is general in nature and is not intended to be tax, legal, accounting or other professional advice. The information provided is based on current laws, which are subject to change at any time, and has not been endorsed by any government agency. Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC. Social Security 360 and Social Security 360 Analyzer are service marks of Nationwide Life Insurance Company. Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company Nationwide NFM-16735AO (09/17)