Retirement Study Reveals Workers Desire Control of Their Financial Futures, But Need to be Advised

Investment Professionals Can Provide Needed Planning Direction

COLUMBUS, OH, May 12, 2003 -- The results of the recently conducted Retirement Confidence Survey, underwritten in part by Nationwide Financial, sends a clear message to investment professionals: Convince your clients that professional advice on savings and investments for retirement planning is necessary.

Of American workers surveyed, the vast majority (89 percent) describe their personal knowledge of investing or saving for retirement as less than comprehensive, and nearly half (43 percent) state they possess no better than limited knowledge.

The survey was sponsored by the Employee Benefit Research Institute (EBRI) and the American Savings Education Council (ASEC), and was conducted by Mathew Greenwald & Associates, Inc. Nationwide Financial and other industry leaders were underwriters.

In response to the survey question: How confident are you that you (and your spouse) are doing a good job of preparing financially for your retirement? - Only 24 percent replied they are "very" confident, while 29 percent are either "not too (confident)" or "not at all (confident)."

Despite this lack of confidence, the survey points out that workers feel compelled to make their own financial choices - 74 percent say they will most likely make their own choices whether or not they consult a financial professional for advice. Yet, 79 percent of those polled prefer help from a financial professional. Only 21 percent say they will do it all on their own.

Richard A. Karas, Nationwide Financial's president of NFS Distributors, Inc., said the results of the survey support the company's stance on helping investment professionals gain a tactical advantage with their clients.

"These results affirm the direction we have taken to provide investment professionals the necessary tools and education for retirement planning," Karas said. "Those tools can help them better use their expertise with their clients. We must provide the helping hand for our investment professionals to secure their clients' financial futures.

"The statistics speak loudly that the workforce finds it difficult to manage savings and investments on their own. The door is open to investment professionals to gain their clients' trust and cooperation for the long term." The survey of American workers also found:

• They expect to rely on savings to fund retirement, yet only six in 10 are currently saving
• Only three in 10 believe retirement savings is their most important savings goal
• Only 37 percent have attempted to do a retirement savings need calculation
• Only one in 4 used a financial professional to assist in determining retirement savings needs
• 83 percent use advice from a spouse for savings/investment advice
• 30 percent admit the advice from a financial professional is most helpful, while only 14 percent of workers stated that advice from a spouse is most helpful

"Consumers planning for retirement need help from investment professionals," Karas said. "Consumers just aren't going to initiate the process. Investment professionals can gain clients' trust by providing them with the solutions necessary to bridge that confidence gap."

Karas said this process begins with a comprehensive and accurate retirement needs calculation and extends through the actual decision-making process.

"Consumers need to make the final decisions on how to reach their goals, but the investment professional should counsel and direct them to the best choices to fit their needs," Karas said. "You navigate their financial savings plan while they pilot the process."

Nationwide Financial Services, Inc., based in Columbus, with assets of more than $95 billion in 2002, is a leading provider of annuities, life insurance, retirement plans, and other financial services for individuals and institutional clients. The major operating subsidiary of NFS is Nationwide Life Insurance Company, the country's 11th-largest life insurer. The parent company, Nationwide, is a leading provider of diversified insurance and financial services and is ranked No. 111 on the Fortune 500 based on revenue.

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