The economic uncertainty and inflation of recent years continue to impact investors as they plan for retirement. According to a new survey by Nationwide, most investors' 'magic number,' or the specific savings target they believe necessary for retirement, ranges between $1 million and $2 million. However, the feasibility of this goal is under scrutiny.

"While it’s good to have a goal in mind, it’s more important to focus on a holistic approach to income planning instead of trying to hit a single number," said Rona Guymon, senior vice president of Nationwide Annuity Distribution. "In fact, according to Nationwide’s survey, only 38% of investors believe in having a magic number target in place. Since everyone’s magic number is different, rather than trying to match someone else’s target, your best bet is to work with an advisor to plan for retirement goals that fit your needs."

The current economic climate affects more than just savings targets. Nearly half (49%) of investors have delayed, altered, or canceled their retirement dreams due to economic conditions over the past five years. Additionally, one-third (33%) are concerned about paying monthly bills during retirement.

Guymon advises focusing on controllable factors and partnering with an advisor as immediate steps toward feeling more confident about reaching retirement. "Working with an advisor to plan for your own unique circumstances – like where you live, your lifestyle preferences and your healthcare expectations – is going to be key in planning for and meeting expenses you might have in retirement," she said. Advisors can help review financial strategies and diversify investment portfolios to ensure steady income during retirement while guarding against market volatility.

With rising living costs prompting investors to rethink their strategies, advisors report clients adopting non-traditional approaches that may lead to adverse outcomes. More than a third (34%) of advisors noted that clients are withdrawing more funds from their retirement accounts, while 23% observed asset liquidation among clients.

Advisors recommend various strategies such as annuities, diversification, non-correlated assets, and liquid alternatives like mutual bonds or exchange-traded funds to protect assets against market risk.

Although there are costs associated with working with financial professionals or advisors, Guymon emphasized that failing to plan holistically for retirement could be more damaging in the long term.

Investing involves market risk and potential loss of principal; no strategy can guarantee profit or avoid loss entirely.

Nationwide offers a team of specialists ready to assist with unique insurance and financial needs.