More than 30 percent of US investors do not believe their current location makes financial sense for retirement, with those in the Northeast and West feeling the greatest pressure to relocate, according to a new Nationwide Advisor Authority study.
The survey, conducted by the Nationwide Retirement Institute, found that 32 percent of investors are reconsidering whether they can afford to retire where they live now. That figure rises to 41 percent in the Northeast and 37 percent in the West, where higher tax burdens and living costs are a growing concern. Overall, 16 percent of investors say they will have to move to a more affordable region to sustain their retirement.
“While it’s clear that investors across America are facing many of the same challenges, their attitudes and actions may look a little different, depending on where they live,” Eric Stevenson, president of Nationwide Retirement Solutions, said in a statement Monday.
Regional differences are evident in both investor sentiment and financial preparedness. The study found that 46 percent of Northeastern investors feel optimistic about their financial outlook for the next year, but one in four expect to work in retirement to cover expenses. Additionally, 19 percent of non-retired Northeasterners said they might need to dip into their retirement savings early if they were to retire in the next 12 months.
Midwestern investors expressed the lowest financial confidence, with only 41 percent optimistic about the next year. They also reported the smallest median nest eggs at around $200,000. However, they appear less likely to make major life-changing moves, with just 11 percent expecting to relocate for the sake of affordability, well below the national average.
In the South, 27 percent of non-retired investors anticipate they'll delay retirement past 65 years old, and 39 percent say they would need to continue working if they retired in the next year. Meanwhile, 69 percent of Western investors believe living costs will impact their retirement plans, and 31 percent say would prefer not to retire in their current city or state.
Nationwide's survey also touched on advisors' concerns, with 78 percent citing a potential US recession as a top worry for the next year. They highlighted inflation as a pressing issue for clients, particularly in the Northeast and Midwest, where 36 percent of advisors say it is their clients’ biggest concern.
“It’s good to see advisors tuned into the needs of their clients who are thinking about relocating in retirement,” Stevenson said. “Advisors have an opportunity to help these clients consider factors like tax implications, healthcare needs and availability, and community support to make a more informed decision about whether or where they should relocate.”
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