Nationwide Retirement Income Confidence Survey Reveals Retirees Might Be Under-Utilizing...

Nationwide Retirement Income Confidence Survey Reveals Retirees Might Be Under-Utilizing Retirement Savings

Findings Show Need for Investment Professionals to Help Clients
Manage Complex Transition into Retirement; Nationwide Announces Formal
Launch of its Income Planning Desk to Assist
COLUMBUS, Ohio--(Business Wire)--
New research conducted by Nationwide, in conjunction with
Yankelovich, found that 57 percent of retirees are living on Social
Security and pensions alone - leaving a significant chunk of their
retirement nest egg untouched. Furthermore, the research -
Nationwide's Retirement Income Confidence Survey - found that, of
those who said they live solely on Social Security and pensions,
almost a quarter admitted they were afraid to spend down their
retirement investments.

"It's natural for consumers to have a tendency to 'play it safe'
when it comes to their nest eggs," said John Carter, president of
Nationwide Financial Distributors, Inc. "But an overly conservative
approach can also mean they're not fully utilizing the resources
available to them, leaving themselves potentially vulnerable to
market, inflation or longevity risk."

For years, the financial services industry has been focused
primarily on helping clients accumulate wealth. Now, with the wave of
baby boomers on the brink of retirement, financial professionals are
challenged to help clients use that accumulated wealth to generate
income - and help them ensure that income is working for them
throughout retirement.

"Retirees can't spend all their savings, but they need to utilize
their nest egg wisely, especially given today's market volatility and
rising gas and food prices. There needs to be a strategy in place that
helps them balance their needs for income, protection and growth
potential," said Carter.

To meet this growing need, Nationwide today announced the formal
launch of its Nationwide Income Planning Desk to serve as the
investment professional's consultant on income solutions for their
clients. The Nationwide Income Planning Desk, which has received more
than 25,000 inquiries in its pilot phase alone, has proven a valuable
resource for investment professionals as they address the complex
needs of the new retiree.

"Americans nearing retirement face a complex challenge, as they
don't have the luxury of current retirees, who say they are funding
retirement out of Social Security and pensions," said Carter. "The
burden on this new generation of retirees is to have enough income for
essential living expenses, or 'must-have' income, and their
'want-to-have' income to pursue the lifestyle they want in retirement.
To do so, they'll need a portion of their nest egg that keeps
accumulating for them to fund a retirement period of 30 years or
more."

Opportunity for Investment Professionals

This presents an opportunity for investment professionals - the
research also reveals that two-thirds of retirees who work with an
investment professional are looking for help on how to grow and
protect their investments and take income out safely. Yet, of the
counsel they receive from their investment professionals, they are
least satisfied with advice about how to determine how much income can
be safely withdrawn in retirement.

"While the majority of retirees and pre-retirees overall believe
their investment professionals are doing a good job, the research
indicates there's opportunity for better client service around
growing, protecting and maximizing retirement income," said Carter.

Nationwide and Yankelovich's Retirement Income Confidence Survey

Nationwide commissioned Yankelovich to conduct an opinion survey
among American adults aged 55 to 77 who have at least $100,000 in
investable assets. Survey results were obtained through telephone
interviews among a representative, randomized sample of 1,000 adults
to determine pre-retirees and retirees' confidence in having enough
money for retirement, as well as how pre-retirees and retirees
evaluate financial investment professionals and their own ability to
manage their retirement investments and spending. The research shows
that less than 20 percent of retirees and pre-retirees felt completely
confident about having enough money to live on comfortably throughout
retirement.

Additional survey findings include:

-- 47 percent of retirees and pre-retirees are not sure their
expected retirement income will be sufficient.

-- Less than one in five pre-retirees put their chances of having
enough income to live on comfortably in retirement at 100
percent.

-- Only 37 percent believe the income they will receive from
their retirement investments is very predictable; less than
half are "very sure" they have the right mix of retirement
investments.

-- Pre-retirees are less likely than retirees to say they have
the "right mix" of investments.

-- If respondents had 10 percent more income each year in
retirement, they would use it for travel (36 percent) and
children/grandchildren (36 percent).

Nationwide's Income Planning Desk

"Nationwide's Income Planning Desk already has achieved
significant success in its pilot phase and we're extremely pleased to
be able to offer this resource to the broader investment community,"
said Carter. "It's another example of our consultative approach to
working with investment professionals."

The Desk features a team of highly credentialed specialists
specifically trained to assist investment professionals in:

-- Providing strategies to address the financial challenges and
risks clients face in retirement

-- Offering case design assistance and customized illustrations
for even the most complex income planning cases

-- Serving as a consultant for Investment Professionals during
client point-of-sale meetings

Piloted in April of 2006, the Nationwide Income Planning Desk has
already assisted investment professionals in helping more than 1,200
clients create strategies for distributing income.

"After a successful pilot, it became obvious investment
professionals crave more resources to help simplify their clients'
complex income planning needs," said Carter. "There is no
one-size-fits-all solution. The Nationwide Income Planning Desk
enhances investment professionals' own expertise and aims to customize
income solutions for each client."

Investment professionals can reach income planning specialists at
the Nationwide Income Planning Desk at 1-877-245-0763 Monday through
Friday, 9 a.m. to 6 p.m. Eastern Time, or via email at
IPLNDESK@nationwide.com. Please mention Retirement Team.

About Nationwide Financial(R)

Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded
company based in Columbus, Ohio, provides a variety of financial
services that help consumers invest(1) and protect their long-term
assets, and offers retirement plans and services through both public-
and private-sector employers.

It's part of the Nationwide group of companies, which offers
diversified insurance and financial services. The group is led by
Nationwide Mutual Insurance Company, which is ranked No. 108 on the
Fortune 500 based on 2007 revenue.(2) For more information, visit
www.nationwide.com.

Variable annuities and variable life insurance products are issued
by Nationwide Life Insurance Company or Nationwide Life and Annuity
Insurance Company, Columbus, Ohio. Nationwide Life Insurance Company
is a subsidiary of Nationwide Financial Services, Inc., a publicly
traded holding company. The general distributor is Nationwide
Investment Services Corporation, member FINRA. In MI only: Nationwide
Investment Svcs. Corporation.

Nationwide, the Nationwide Framemark and On Your Side are
federally registered service marks of Nationwide Mutual Insurance
Company.

(C) 2008, Nationwide Financial Services, Inc. All rights reserved.

(1) Nationwide Investment Services Corporation, member FINRA. In
MI only: Nationwide Investment Svcs. Corporation.

(2) Fortune Magazine, April 2008

Nationwide
Jeff Whetzel, 614-249-6354
whetzej@nationwide.com
or
Jeff Botti, 614-249-6339
bottij@nationwide.com

Copyright Business Wire 2008