New index finds consumers favoring stability over wealth building amid cost pressures.
Financial advisors who can speak to protection, not just growth, may find a more receptive audience, as a new survey shows consumers now weigh safeguarding their money as heavily as growing it.
The inaugural Nationwide Financial Growth & Protection Index, produced by the Nationwide Retirement Institute, gave US consumers a score of 54 out of 100 on a scale measuring the balance between financial growth and financial protection, putting the average respondent slightly closer to the protection end of the spectrum. The index draws on three components: mindset, actions and confidence.
Nearly three-quarters of respondents said they would be more inclined to work with an advisor who could help them protect their finances, according to the research. That appetite comes as employer-sponsored retirement plans continue to serve as the primary savings vehicle for most Americans, a dynamic the report frames as an opening for advisors and workplace retirement plan professionals to fold protection strategies into long-term growth planning.
Guaranteed income options may carry particular weight with clients. The survey found 81% would rather have a predictable, guaranteed stream of retirement income than pursue higher-growth investments, yet only 24% currently hold products or strategies aimed at cutting market risk once they are retired.
Income protection also shows a gap between intent and action. Just 30% of consumers have taken steps to guard against lost income due to illness or injury, and 27% said they would have no financial protection whatsoever if the household's main earner became unable to work.
Craig Hawley, president and chief operating officer of Nationwide Financial, said the shift reflects a changed environment rather than diminished ambition.
"Financial progress still matters to Americans, but the path to achieving it has changed. People still want to build wealth, but today's environment has made financial stability and resilience just as important. Protecting what you've worked hard to build has become a critical part of achieving long-term financial success."
Redefining the dream
The survey found 84% of respondents now associate the American Dream more closely with financial stability than with accumulating wealth, and the same proportion said getting ahead financially is tougher than it was for earlier generations.
Everyday budget strain appears to be driving that reassessment. Over the past year, 68% of consumers cut back on spending to shore up their finances, and 45% pulled money from savings to cover essential costs. Three in four (75%) said covering basic expenses is their main financial priority, and 74% described themselves as simply trying to stay afloat financially.
Even so, longer-term optimism has not disappeared. Seven in 10 consumers (70%) said they expect to meaningfully improve their financial position over the next five years, and 59% anticipate a meaningful rise in income over time.
Hawley said the findings point to a shift in how retirement planning is approached rather than a retreat from saving altogether.
"Our findings suggest retirement planning is entering a new chapter. 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. That creates an opportunity for financial advisors and workplace retirement plans to bring growth and protection together in a way that better reflects how Americans are preparing for retirement today."
