As the financial landscape evolves, retail investors are in need of innovative investment solutions to secure their financial future. The World Economic Forum has been providing personalized content collections for free, including the latest publications and analyses, to help individuals navigate these changes. This article explores new investment opportunities and trends that are redefining retirement and ensuring a secure financial future for retail investors.
Ubiquity Retirement + Savings and DriveWealth Partnership
Ubiquity Retirement + Savings has partnered with DriveWealth to offer fractional share trading to retirement plan participants, a first among small business 401(k) providers. This partnership allows small business owners and their employees to have more freedom and choice in a user-friendly way that has never before been seen in a 401(k) plan. Ubiquity’s small business clients will have access to more than 30,000 mutual funds and ETFs. Secure 2.0 has cleared the path for more businesses to establish plans, and Ubiquity is looking forward to delivering customizable, low-cost retirement plans to small businesses.
Working After Retirement: A Growing Trend
Nationwide’s Advisor Authority survey shows that 69% of non-retired investors may work or continue working after retirement due to turbulent market conditions and inflation. 44% of these investors say they’ll have to work to supplement their retirement savings or income out of necessity. Additionally, 40% of non-retired investors plan to move to a different city or region after retiring, with a lower cost of living (43%) and lower taxes (34%) being the most common incentives for relocating.
Advisors and Financial Professionals Notice the Trend
Advisors and financial professionals are noticing the same trend, with 78% of advisors saying their clients will or may continue working after retirement. 60% of investors cited staying physically and mentally active as a reason for working through retirement, while 41% aim to preserve a sense of purpose in their continued employment.
Confidence Levels Among Non-Retired Investors
Non-retired investors who work with an advisor or financial professional are less confident than those who do not work with one, with 49% of those with an advisor being “very nervous” about spending down their retirement savings in today’s current market environment. Confidence levels increase when talking with non-retired investors without an advisor, with 36% confident in their post-retirement financial futures, 35% confident in their financial plans for retirement despite volatility, and 43% taking steps to adjust their
portfolio.
