Many Americans say they're not meeting retirement expectations

A new Nationwide survey of Americans aged 60 to 65 years old has revealed that many adults in that cohort are not as financially comfortable as they expected at this point in their lives.

Respondents ranked inflation as the greatest threat to their retirement security at 90 percent, while cuts to Social Security benefits and cuts to Medicare/Medicaid benefits ranked a close second and third place at 84 percent and 83 percent, respectively.

The online survey, conducted by Edelman Data and Intelligence for the Columbus-based insurance and financial services company, found a third of current retirees in that age range are considering returning to work, with half of the respondents citing the fear of running out of money or currently running out of money as their top reason to do so.

Additionally, the survey revealed a gap between the realities of current retirees and the expectations of cohort representatives who are working, including unrealistic estimates about basic living expenses, reduced financial security and a shortfall in Social Security benefits.

"As we enter a period of peak retirement in our country, many retirees will face harsh reality checks if they missed opportunities to prepare for this moment," said Nationwide Financial President and COO John Carter.

Another of the gaps between retirement reality and expectations of the individuals near retirement is the issue of retiring ahead of schedule.

The survey found that the average retirement age was 60 years old, while the average age of expected retirement was 67.

Sixty-four percent of current retirees stopped working earlier than they had planned, the survey provided.

"One of the most crucial tasks of our time is to ensure American workers understand how everyday choices impact their financial futures," Carter said. "It's important for those preparing for retirement to have a holistic plan, addressing factors like the right time to take Social Security, costs of health care and long-term care and ways to ensure they don't outlive their income."

When survey respondents were asked what advice they would give their younger selves about retirement planning, almost a quarter (23 percent) said to expect to need more money than they had thought.

Nearly 1 in 5 said not to assume they could work for as long as they would have liked.

Retirees cited working with a financial professional, saving early, maxing out retirement plan contributions and retirement plan auto increases as actions that most helped their retirement security, while bad investments, extravagant purchases, tapping retirement savings early and waiting until after age 30 to start saving were cited as actions that most harmed their retirement security, the survey provided.

"These words of advice from those who have reached retirement provide great points of reference for American savers at every stage of the retirement planning journey," Carter said.

Survey findings revealed that a little more than a third of respondents had worked with a financial adviser, while others relied on a mix of sources, including the internet, friends and family and resources from their employer-sponsored retirement plan.

One in 10 of older respondents had not sought any information about retirement planning, the survey detailed.

The survey of 1,000 people aged 60-65 on behalf of Nationwide was conducted from Nov. 2-29.