Nationwide: A Quarter of Retired Investors Still Paying Off Mortgages

(Image courtesy of Nationwide)

Nationwide, Columbus, Ohio, released its annual Advisor Authority study, powered by the Nationwide Retirement Institute, finding that 26% of retired investors are still paying mortgages and 25% are paying off credit card debt.

Almost one-third–31%–of retirees said they expect to be less secure in retirement than their parents or grandparents. Moreover, 22% worry about affording their monthly bills.

Retired investors are adjusting their lifestyles, as a result–39% report spending less on entertainment and 34% are traveling less. Additionally, 22% are drawing more funds from retirement accounts.

Roughly two-thirds (63%) said they have a strategy in place to protect their assets against market risk, compared with 54% last year.

Nationwide found that as a result, some retirees are abandoning various “rules.” The survey found 12% are not following the “70-80% spending rule,” which usually means ensuring that retirees have 70-80% of their pre-retirement income per year in retirement.

Additionally, 11% are not following the 4% rule–essentially withdrawing 4% of their retirement portfolio each year in retirement.

Thirty-two percent report having discussions about end-of-life with their families and heirs, and 34% are discussing financial details of their estate.

“The picture of life after retirement has changed for many people as economic stressors continue to weigh on retired investors,” said Mike Morrone, Vice President of Nationwide Annuity Business Development.

The study was conducted online in January by The Harris Poll on behalf of Nationwide among 518 advisers and financial professionals and 2,346 investors.