Balancing Retirement Savings With Family, Financial Stability Concerns

Despite remaining optimistic about their financial futures, many pre-retirees and retirees are navigating competing priorities that are complicating their retirement readiness.

According to the Nationwide Financial Growth & Protection Index, 70% of surveyed consumers believe they could significantly improve their financial situation over the next five years, while 59% expect their income to increase meaningfully over time. Yet many reported not taking steps to protect against financial setbacks that could derail those expectations.

Only 30% of the 2,000 adults aged 22 and older surveyed from May 1 through May 14 had taken steps to protect against income loss due to illness or injury, and 27% said they would not be financially protected at all if their household’s primary income earner could no longer work.

However, while initiative is low, Nationwide found significant interest in the right guidance, with 74% of survey respondents saying they would be more likely to work with a financial adviser who could help protect them financially.

The disconnect extended to retirement planning, with 81% of survey respondents saying they would prefer a guaranteed, predictable income stream in retirement to higher-growth investments, but only 24% reported having products or strategies designed to reduce market risk in retirement.

As Americans increasingly define financial success through stability, the findings indicated that many are still searching for ways to translate that preference into long-term retirement strategies.

“Our findings suggest retirement planning is entering a new chapter,” said Craig Hawley, president of Nationwide Annuity, in a statement. “Building wealth remains essential, but consumers also want confidence that their savings can support them through market volatility, longer lifespans and life’s unexpected challenges.”

A separate study from retirement fintech provider IRALogix suggested that family financial obligations may be one factor shaping how consumers approach retirement saving.

IRALogix, which surveyed 1,108 U.S. adults ranging in age from 25 through 74 from June 24 through June 28, learned that 75% of respondents agreed that they would financially help a loved one, even if doing so delayed their own retirement by as much as five years. In addition, 81% said they would feel personally responsible for helping a close family member facing serious financial hardship, and 88% said people feel at least some pressure to provide financial support to relatives, even when they cannot comfortably afford it.

Rather than viewing retirement and family support as competing goals, many respondents indicated they were attempting to manage both at the same time.

“People don’t experience their financial lives in separate categories,” said Peter de Silva, IRALogix’s CEO, in a statement. “Retirement planning doesn’t happen in one bucket while family responsibilities happen in another. For many Americans, those priorities unfold simultaneously.”

Both survey findings present opportunities for advisers and workplace retirement plan providers to address retirement readiness through a broader financial wellness framework, including emergency savings, income protection and financial planning strategies that account for multigenerational family responsibilities.

The IRALogix survey found the tension was particularly pronounced among adults ages 45 through 60, who reported the strongest sense of responsibility toward family members and the greatest willingness to make meaningful financial sacrifices to help loved ones. Those years often coincide with peak earnings and retirement contributions, as well as caregiving responsibilities for aging parents or financial support for adult children.

The emotional impact of those decisions was also evident: 60% of respondents said family financial responsibilities create stress and tension within families, while only 9% reported discussing financial expectations before problems arise.

“The family factor isn’t really a story about family finances,” said de Silva in his statement. “It’s a story about how people make financial decisions when more than one important future depends on them.”