“Between inflation and a lack of savings, many pre-retirees are likely feeling they don’t have enough to make a traditional retirement work. Our survey provides great insights to help advisors, financial professionals and plan sponsors across the country understand these investors and tailor their approach to meet their personalized needs.” 
 
Northeasterners feel the burden of high living costs: Nearly half (46%) of Northeasterners describe their financial outlook for the next 12 months as optimistic, with a median retirement savings of about $250,000. However, 20% expect to relocate to a more affordable region in retirement due to the cost of living, surpassing the national average of 16%. 
 One in four Northeastern investors (25%) anticipate working in retirement to supplement their income out of necessity due to cost of living, and 19% of non-retired Northeasterners say they might withdraw money from retirement savings prematurely to afford cost of living if they retired in the next 12 months.  
 
Midwesterners are impacted by inflation, smaller nest eggs: While Midwest investors may be the most pessimistic about their retirement, they also are the least likely to make financial lifestyle changes – perhaps due to the generally lower cost of living and taxes in their region. Just 32% of Midwesterners say they plan to work beyond age 65 – the smallest share of any region. Only 11% expect the cost of living in their area to force them to relocate to a more affordable region for retirement, well below the national average.  
 
Westerners have larger savings: More than four in 10 (44%) investors in the West feel optimistic about their financial outlook in the next 12 months. What’s more, investors in this region indicated the highest median level of savings of all regions, at about $300,000.  However, inflation weighs on Western savers, with seven in 10 (69%) saying the cost of living will impact their ability to retire, and about 31% saying their current state or city is not the place they want to be in retirement.  
 
Southerners feel confident but expect to work longer: While 43% of Southerners express an optimistic financial outlook for the next 12 months, nearly three in 10 (27%) non-retired Southerners expect to delay retirement and 39% say they would need to continue working in some capacity to supplement their income if they retired in the next 12 months. Further, 62% believe the norm of retiring at 65 doesn’t apply to people like them, while 72% say living costs will impact their ability to retire. Southern survey respondents indicated they held a median retirement savings of $250,000.  
 
Unified in their concerns of a U.S. recession in the next 12 months (78%), advisors in the Midwest (37%) and South (37%) are discussing tax planning strategies most often with their clients, while those in the Midwest (85%) are most frequently incorporating annuities into their clients’ retirement plans.  

“Inflation remains a key concern for Midwest investors, with only 41% saying they were optimistic about their 12-month financial outlook – the lowest of all regions,” said Stevenson. “Therefore, it’s not surprising to hear that advisors in the Midwest are most frequently using annuities to help their clients’ protect against market risk.“One of the most important things advisors can do is understand the regional needs of the clients they serve. By talking with them about their personalized needs and working with them to find solutions that address those needs, advisors can provide guidance that gets their clients closer to achieving a secure, comfortable retirement.”

Advisors across the country are bracing for financial adversity, with 78% expressing concern about a U.S. economic recession over the next 12 months. Inflation tops the list of client concerns over the next 12 months, cited by 34% of advisors, with regional variations: Advisors said inflation concerns among clients were highest in the Northeast and Midwest (36% each), followed by the South (34%), and West (29%).  
 
Tax planning and retirement savings remain top priorities across regions. Advisors frequently discuss tax planning strategies (Northeast 33%, Midwest 37%, South 37%, West 33%) and accumulating sufficient savings to enter or stay in retirement (Northeast 27%, Midwest 31%, South 32%, West 33%) with their clients.  
 
Advisors are also emphasizing retirement timing and long-term care with clients. They say they are frequently talking to clients about when they are financially ready to retire (41% West, 33% Northeast, 37% Midwest, 32% South), and considering long-term care solutions (34% West, 22% Northeast, 21% Midwest, 24% South).  

“Advisors recognize their clients’ needs for long-term care solutions, with 34% across the country saying one of their clients’ biggest concerns over the next 12 months is retirement living community or HOA dues. In fact, 25% of advisors say they are frequently discussing long-term care options with their clients, with an additional 23% talking to them about paying for healthcare in retirement,” said Stevenson. “This is a challenge many Americans grapple with that is not an easy or fun question. It’s deciding whether to protect their family in the event of their death or protect their savings from being wiped out due to long-term care costs.

“One of the ways the industry is helping advisors address this challenge is through innovative hybrid long-term care life insurance solutions. Our CareMatters Together solutions offer a shared pool for two individuals – providing flexibility in how they use both life insurance and long-term care benefits. The best advisors are making long-term care part of a holistic planning conversation – as opposed to simply focusing on accumulation or other individual factors that should be part of a broader plan to protect their retirement. 
 
Advisors are largely unified in the solutions they use to help clients protect their assets against market risk, widely using annuities, with advisors in the Midwest (85%) and West (78%) most frequently incorporating them into client plans. 

Related: 58% of Americans socked away 9% of their annual income for retirement in 2024: Principal

“It’s good to see advisors tuned into the needs of their clients who are thinking about relocating in retirement. 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,” Stevenson said.

“To help ease worries about long-term financial security, I'd also encourage advisors to continue exploring protection and income solutions like annuities. Many employer-sponsored retirement plans across the country are now offering solutions that protect against volatility and guarantee income in retirement as well. Advisors also have a great opportunity to help their plan sponsor clients understand the value of including these solutions as an investment option within their plan to help participants feel more confident about their financial future.”