For millions of Americans who retired in the last five years, the transition from earning a paycheck to living off savings brings an uncomfortable reality check: many wish they did things differently, according to a new Advisor Authority study, powered by the Nationwide Retirement Institute.

More than half (55%) of recent retirees (those retired in the last five years) say they have regrets about how they saved for retirement. More than a quarter (28%) wish they began saving earlier, and 13% wish they contributed more to their retirement savings and investments each year.

Immediate, tangible financial challenges are fueling these concerns. Just 40% of recent retirees say they’re on track with their original budget and decumulation plan, and 21% say they’ve had to be more conservative with spending compared to their pre-retirement expectations. Only one in five (20%) have avoided the need to tap retirement savings by relying solely on the guaranteed income of a pension and/or Social Security, resulting in a majority who may need to lean on their self-invested retirement funds accumulated in their working years.

“Many recent retirees told us they wish they had saved differently, highlighting a critical truth: retirement planning isn’t just about setting a number—it’s about building a strategy that anticipates life’s changes and regularly revisiting that plan as life happens,” said Kevin Jestice, president of Nationwide Retirement Solutions. “Thoughtful, comprehensive planning before retirement can make the difference between uncertainty and confidence in your future. A great way to do this is by working with a trusted financial advisor or leveraging planning resources offered through your workplace retirement plan. For those already retired, it’s not too late to take steps to enhance your retirement strategy. Reviewing your budget, exploring additional income opportunities and working with a financial advisor can help you feel more secure and in control.”

Market Volatility Hits Recent Retirees Harder
Recent retirees are especially vulnerable to market turbulence, and those new to post-career life are facing more significant headwinds than their peers who retired more than five years ago (longer-term retirees). As a result, recent retirees are more likely to make changes to their portfolios in the early years of retirement. Half (50%) of recent retirees made at least some changes to their retirement portfolio due to market turbulence, compared to just one-third (33%) of longer-term retirees. Additionally, 15% made significant changes to their portfolio – nearly double the 8% of longer-term retirees who did the same.

The impact extends beyond portfolio adjustment and into real-world spending decisions. Nearly half (47%) of recent retirees say recent market volatility has impacted the way they approach managing their portfolio and withdrawing or spending down their savings in retirement, compared to 35% of longer-term retirees.

This market uncertainty is also driving interest in guaranteed income solutions. Thirty-six percent (36%) of recent retirees said they are more likely to put part of their portfolio in an annuity given the events of the last 12 months.

Advisors Recognize the Unique Challenges of Early Retirement
Financial professionals understand the first two years of retirement require heightened attention and strategic adjustments. Based on what they see with their own clients, top challenges for recent retirees cited by advisors include:

Adjusting to life without a paycheck: Six in ten (60%) advisors say adjusting to not earning active income or not having a job is a challenge their recently retired clients face in their first two years of retirement.
Managing anxiety about market volatility: More than four in ten (42%) advisors say dealing with anxiety about market volatility while living off investments is a challenge.
Staying within budget: Four in ten (41%) advisors say maintaining their desired lifestyle within budget constraints is a challenge.
Market conditions are driving advisors to take action. The vast majority (85%) of advisors say recent market conditions caused them to recommend changes to clients’ decumulation strategies, and nearly half (45%) made significant changes across most of their recent retiree clients’ decumulation strategies.

Recent Retirees Stay Highly Engaged as Advisors Refocus
Instead of a “set it and forget it” planning approach, advisors report that their recent retirees are monitoring their portfolios closely.

More than half (56%) of advisors say their recently retired clients review their portfolio and financial plan at least monthly. Nearly one in five (19%) review continuously, with access through digital platforms and periodic advisor contact, and 16% do weekly brief check-ins during market volatility periods.

Financial professionals are adapting their approaches to meet the investment needs of their clients. Notably, 93% of advisors increased their focus on addressing healthcare costs over the last year, and 87% increased their focus on identifying guaranteed income solutions.

“The first few years of retirement are critical, and we’re encouraged to see recent retirees lean on their advisors to navigate a changing market environment. Advisors play an essential role during this period, helping retirees navigate new financial realities, manage spending and adjust strategies as their next chapter begins to unfold,” Jestice said. “Advisors can help boost confidence by reviewing or exploring guaranteed income solutions or other strategies to address longevity risk. With expert guidance, retirees can feel confident their plan supports both today’s needs and tomorrow’s possibilities.”

The Nationwide Retirement Institute offers resources to help advisors facilitate conversations with Gen X clients.

For more insights on this survey data, see our infographic.

Guarantees are subject to the claims-paying ability of the issuing insurance company.
Provisions of these options may vary based on plan selection and/or by state regulation. These investment options may not be available in all states.

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