Two in five Pre-Retirees Say Dreams for Retirement Have Been Delayed, Altered or Cancelled
Wednesday, July 16th, 2025
Pre-retiree investors (aged 55-65) are at the doorstep of retirement, yet the state of the economy is making them question whether retirement is even in their future. According to a new Advisor Authority study, powered by the Nationwide Retirement Institute, more than two-fifths (42%) of pre-retirees say their dreams for retirement have been delayed, altered or cancelled as a result of economic conditions seen in the last five years.
These conditions include the increased cost of living, cited by 51% as one of the biggest long-term challenges to their retirement portfolio, and inflation, with 15% saying they will retire later than planned because of it.
Possibly as a result, some pre-retirees are focused on building their savings over the next year, including one fifth (20%) who say their biggest financial concern over the next 12 months is saving enough for retirement. Many also plan to continue working in some capacity in retirement to preserve those savings. More than one third (35%) of pre-retiree investors are planning to work in retirement, and 27% say they're delaying their retirement – two approaches that are radically different from previous generations.
"Many pre-retiree investors saw their parents and grandparents retire with the confidence that came from having traditional pension benefits – benefits that are much less common today," said Craig Hawley, president of Nationwide Annuity. "It's not surprising that pre-retiree investors are questioning whether their dream retirement is even possible as they grapple with lingering inflation, market volatility and concerns about running out of money in retirement. As a result, we're seeing many of them abandon conventional retirement strategies used by previous generations. Rather than try to figure this out on their own, pre-retirees should lean into relationships with trusted financial professionals to build a plan that puts them in the best position for success."
Not your grandparents' retirement: Veering from traditional retirement rules
Overall, nearly six in ten (59%) pre-retiree investors say their expectations for retirement have changed significantly in the last five years. At the same time, many also indicate they do not subscribe to traditional retirement norms and strategies in the same way previous generations have, citing today's economic environment as the cause.
The 4% Rule: More than a third of pre-retirees (35%) do not find the 4% Rule (withdrawing 4% of your retirement portfolio annually to make it last through retirement) to be a relevant retirement rule of thumb in today's economic environment. Some (13%) investors in this group are abandoning the 4% Rule altogether.
100 Minus Age: Additionally, 53% do not find the '100 Minus Your Age in Stocks' rule (deciding the portion of your portfolio dedicated to stocks based on your age) to be relevant in today's economic environment.
Magic Number: Pre-retirees are also abandoning a 'target' retirement age or savings goal. Over half (52%) of pre-retiree investors do not believe in the concept of a 'magic number' for retirement savings.
Retiring at 65: Nearly two thirds (64%) say the norm of retiring at age 65 doesn't apply to people like them, up from 59% a year ago.
Advisors aren't ready to abandon tried-and-true rules of thumb
Facing largely ambiguous retirement prospects, pre-retirees are turning to financial professionals – with many having done so in the past year. Of the 40% of pre-retirees who currently work with a financial advisor, more than a quarter (28%) started working with their advisor in the last 12 months.
Financial advisors still support traditional retirement rules of thumb, even as their pre-retiree clients abandon legacy investment practices. A significant majority (84%) of advisors find the 4% Rule to be relevant in today's economic environment, and nearly three fourths (73%) find the '100 Minus Your Age in Stocks' Rule to hold value, too.
"Our survey data shows a disconnect between pre-retiree investors and advisors when it comes to traditional retirement strategies – a gap that may be driven by the fact that more than half of pre-retiree investors are not currently working with an advisor and may not understand how these tried-and-true rules of thumb can benefit them," Hawley said. "While traditional retirement rules are not going to be for everyone, working with a trusted advisor can help pre-retirees determine which ones, if any, are right for them."
Financial professionals cite macroeconomic factors as key disruptors to their clients' retirement planning strategies. Nearly half (46%) say inflation influenced their pre-retiree clients to rethink or redefine their retirement planning strategies. Nearly the same share of advisors (45%) blame the rising cost of living and 37% point to a fear of running out of money in retirement.
With these headwinds in mind, advisors say their pre-retiree clients' retirement prospects look much different than those of their parents or grandparents. More than four in ten (42%) advisors say their pre-retiree clients plan to 'phase' their retirements (work six months, off six months, or work fewer hours).
"Pre-retiree investors are at an age where the financial decisions they make can carry massive implications for their retirement security," Hawley said. "Financial professionals can help them create a holistic plan for addressing important factors like Social Security, health care, long-term care, taxes and income in retirement. While some of these investors may feel hopeless, a good financial professional can help them chart a course for a more secure retirement and potentially head off challenges while there's still time to address them."
The Nationwide Retirement Institute offers resources to help facilitate conversations on these topics. These resources can help advisors address plans and identify gaps for their pre-retiree clients before it's too late.
For more insights on this survey data, see our infographic.
Nationwide's tenth annual Advisor Authority study, powered by the Nationwide Retirement Institute® explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today's complex market.