For example, a 'High-Timer' who wants to afford extras may need to work a little longer than a 'Homebody' who expects to spend less in retirement. Americans need to adjust their retirement thinking and strategies according to what ultimately makes them happy.
Columbus, Ohio (PRWEB) January 18, 2007
According to a new study released today by Nationwide Financial (NYSE: NFS), 88 percent of Americans are confident they know what it will take to support their lifestyle in retirement. Yet, the updated National Risk Retirement Index, recently announced by the Center for Retirement Research at Boston College, conservatively places 44 percent of the country's households 'at risk' of being unable to maintain their standard of living in retirement. So why the disconnect?
"These findings illustrate the need for people to truly understand what kind of lifestyle they wish for in retirement. While sufficient income will be a necessity, understanding your drivers of happiness so you're able to plan what your income will be used for differs significantly based on individual priorities," said Gordon Hecker, senior vice president at Nationwide Financial.
The Nationwide Retirement Decisions Study, conducted with Mathew Greenwald & Associates, found that individuals near or in retirement fell into one of five segments:
-- High-Timers (34 percent of respondents)
-- In-the-Moments (22 percent)
-- Self-Sufficients (17 percent)
-- Homebodies (16 percent)
-- Connecteds (11 percent)
The survey polled 500 people aged 55 to 70, half working and half retired. According to the survey results, each of the five segments differed in what they found to be most important at this stage of their life. For more information on each of the segments, including segment-specific planning tips for retirement, please contact Lauren Dettloff at 312-751-3540.
"As indicated by the segments, people want different things out of life, which will impact their level of happiness and correspondingly how they should prepare for retirement," said Mathew Greenwald, President and CEO, Mathew Greenwald & Associates. "For example, a 'High-Timer' who wants to afford extras may need to work a little longer than a 'Homebody' who expects to spend less in retirement. Americans need to adjust their retirement thinking and strategies according to what ultimately makes them happy."
"The key to a good retirement is summed up in the age-old wisdom: 'know thyself,'" said Hecker. "With nearly 50 percent of the country financially unprepared for a secure retirement, consumers need to take steps to understand themselves and to better prepare, regardless of which category they fall into. The sooner people understand their goals for retirement the sooner they can begin preparing for the retirement they want."
The new research is a continuation of Nationwide Financial's efforts to help empower consumers, regardless of income or financial sophistication, with clarity around the path to retirement. The company recently launched RetirAbility CheckSM, a free online resource that provides users with a simple, fun and engaging way to measure their retirement readiness. Visit http://www.nationwide.com/RetirAbilityCheck for more information.
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 invest1 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. 98 on the Fortune 100 based on 2005 revenue. For more information, visit http://www.nationwide.com.
Nationwide, the Nationwide Framemark and Nationwide Financial are federally registered service marks of Nationwide Mutual Insurance Company.