As the New Year approaches, America's workers are taking stock of their financial wellbeing and setting resolutions to improve their future financial health. Nationwide's 2024 Protected Retirement Survey shares key lessons learned by employees nearing retirement, offering valuable insights for those looking to make smarter financial choices in the year ahead.

According to the survey, a striking 82% of employees over the age of 45 wish they had sought advice or guidance on retirement savings when they were younger. The same number wish they understood the importance of compounding interest sooner, regret not taking retirement saving more seriously during their younger years, and wish they had focused more on income protection strategies at an earlier age.

"New Year's resolutions often fall by the wayside when they feel too overwhelming, but financial resolutions don't have to be overly ambitious to make a difference," said Suzanne Ricklin, Vice President of Retirement Solutions at Nationwide Financial. "Starting small—like increasing retirement contributions by just a percent or setting aside a little more in savings each month—can lead to meaningful progress over time. These small financial changes are easier to stick with and thanks to the power of compounding interest, even small steps can have a significant impact on your future."

Turning financial regrets into New Year's resolutions

Through the survey, older employees shared valuable financial lessons they wish they had known earlier, offering younger generations a roadmap to avoid common retirement regrets. Their advice inspires actionable New Year's resolutions that can pave the way to long-term financial success:

• Resolution 1: Start saving now—even small amounts make a big difference. More than three-quarters (76%) of workers aged 45+ wish they had started saving earlier. Whether you're just beginning or already contributing to a retirement plan, it's never too late to start or increase your savings. Even small steps, like contributing monthly to a 401(k) or increasing your current contribution by 1 – 2%, can lead to significant growth over time thanks to the power of compounding interest.
  
  
• Resolution 2: Maximize your employer match. Don't leave additional funds on the table. Contribute enough to your retirement plan to receive your employer's full match. If your employer doesn't offer a match, explore other options, such as increasing your contributions to tax-deferred accounts like IRAs or HSAs to boost your savings.
  
  
• Resolution 3: Build an emergency fund. Having savings readily available to pay for an unexpected expense is essential for protecting your long-term finances. More than half (56%) of employees identified having an emergency fund as a top priority, yet many Americans fall short—27% have no emergency savings at all, according to Bankrate's 2024 Annual Emergency Savings Report. To get started, set up automatic monthly transfers to a dedicated savings account through your bank.
  
  
• Resolution 4: Tackle debt strategically. Paying down debt is essential for financial health, but it shouldn't come at the expense of saving for retirement. Prioritize eliminating high-interest debt, like credit cards, while still contributing to your retirement plan. Striking this balance can help grow your savings through compounding interest while easing the burden of high-interest debt.
  
  
• Resolution 5: Take advantage of employer-sponsored resources. Many retirement plans offer free tools, educational materials, calculators and trained resources to help optimize your strategy. Take advantage of these resources and reach out to your plan administrator for personalized guidance. Ask whether your plan offers solutions to help plan for income in retirement, and if not, consider advocating for them as they can play a significant role in achieving your retirement goals.

Nationwide offers a variety of educational resources for newer investors.

Tackle retirement challenges with your financial professional

Planning for retirement can feel overwhelming—many American workers report facing challenges like determining how long their savings need to last (61%), understanding how to maximize benefits (57%), turning retirement savings into reliable income (55%), and figuring out how much they should be saving to reach their goals (55%). These uncertainties can make it difficult to approach retirement with confidence.

Meeting with a financial professional in the New Year can help alleviate these concerns by offering personalized advice and a clear strategy.

"No one should have to navigate retirement planning alone," said Ricklin. "A financial professional can simplify the process, provide answers to your most pressing questions, and create a plan tailored to your goals and timeline, giving you confidence to take control of your financial future."

To learn more about Nationwide's protected retirement solutions, visit:

• For financial professionals
• For plan sponsors

Methodology

Edelman Data and Intelligence (DXI) conducted a national online survey of n=500 private plan sponsors, n=100 public plan sponsors, n=2,200 plan participants, n=400 peak retirement plan participants, and n=400 financial advisors on behalf of Nationwide from July 11th – July 26th, 2024. 

As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified financial services and insurance organizations in the United States. Nationwide is rated A+ by Standard & Poor's. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; and pet, motorcycle and boat insurance.