Oct 15, 2026

Retirement Blind Spot: 29% of Investors Aren't Prepared for a Market Downturn

Most Americans believe we're due for an economic downturn. A recent Nationwide survey found that more than three in four (77%) non-retired investors are concerned about a U.S. economic recession over the next 12 months.

Yet, the same survey found that 29% of non-retired investors do not currently have a strategy in place to protect their assets against market risk, and 10% are not sure if they do. While market swings are causing concern, advisors say they're only one of several threats that could affect retirement security.

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Here's how investors can prepare.

How Investors Can Prepare for Market Volatility

Market volatility is a normal part of investing, but the Nationwide survey suggests many investors may not be prepared for it.

"Rather than reacting emotionally to short-term swings, investors should focus on maintaining a diversified portfolio that aligns with their long-term goals and risk tolerance," said Mark Hackett, chief market strategist for Nationwide's Investment Management Group. "History shows that some of the market's strongest days often occur during periods of heightened uncertainty, making it costly to move in and out of the market based on headlines."

A diversified portfolio can help reduce risk while keeping investors focused on their long-term objectives. While market downturns can be unsettling, selling investments based on short-term fears may make it harder to achieve retirement goals.

"Staying disciplined, diversified and invested has historically been one of the most effective ways to navigate market volatility," Hackett said.

3 Other Retirement Risks Advisors Are Watching Closely

Market volatility isn't the only risk to financial security in retirement. The survey found that financial advisors are also tracking other potential threats to their clients’ long-term plans:

24% say the cost of healthcare is among the most immediate challenges to their clients' retirement portfolios.
55% believe Social Security or Medicare funding will be reduced, with 40% specifically citing Social Security solvency as a concern.
58% expect the future tax burden for their clients to increase.

"It’s no surprise that some of the top risks to investors’ retirements include rising healthcare costs, ambiguity around Social Security and Medicare funding, and taxes," said Brad Carrier, vice president of brokerage annuity distribution at Nationwide. "While Americans can’t eliminate these risks entirely, they can make their retirement plans more resilient by partnering with an advisor."

To meet these threats head-on, 60% of advisors said they are more likely to recommend a client put part of their portfolio into an annuity or other solution that provides guaranteed income.

"Concerns about the future of Social Security are part of what’s driving interest in guaranteed income solutions in today’s environment, with data from Greenwald Research showing 70% of consumers are confident annuity payments will be made as promised, compared to just 61% who feel the same way about Social Security," Carrier said. "That’s important for those who don’t have a pension to rely on in retirement."

Annuities may also help address concerns about increased taxes in retirement, he added.

"Advisors are turning to solutions that combine predictable income with tax efficiency, like annuities," Carrier said.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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Written by

Gabrielle Olya

Edited by

Zuri Anderson