Americans are apprehensive in many ways about how the upcoming presidential election could affect their personal finances, according to a new survey.
The concerns include inflation and the cost of goods and services (49%), taxes (39%), the election’s effect on their retirement plan (80%), whether they will be able to rely on government programs like Social Security or Medicare (31%), and the effect on their investment portfolio (23%), according to the study by Wealth Enhancement Group, an independent wealth management firm with more than $90 billion in total client assets. The study surveyed 1,000 Americans.
Almost 2 in 10 (19%) believe the election will affect their time of retirement, with Gen Z expressing the greatest concern (29%). More than half (55%) fear that inflation has set back retirement goals, delaying retirement by nearly 8.5 years on average.
But Ayako Yoshioka, a portfolio consulting director at WEG, urged investors not to fret. “Historically, the outcomes of elections have had very little long-term impact on market performance,” Yoshioka said in a news release. “For those feeling concerned about the election, I’d encourage them to talk with their advisor to ensure their financial plan is built to last, regardless of who’s in office.”
Many Americans have a positive long-term outlook despite the election worries, with 77% expressing positive feelings about retirement, including happiness (45%) and gratitude (37%).
Among the pastimes and goals Americans plan to pursue in retirement are traveling (58%), picking up new hobbies (41%), volunteering in their community (26%) and working part-time on passion projects (22%).
Many Americans express misgivings about their retirement preparation, with only 48% saying they have “done everything right,” Only 35% of those who are still working think they have met or are on track to meet their retirement goals, and 61% are concerned about running out of money during retirement.
Only 19% of Americans regularly meet with a financial advisor to discuss their retirement plan, and 18% haven’t set any retirement goals.
“A trusted advisor can help you sort through the details of your finances and craft a plan that meets your unique goals and vision for life,” Yoshioka said. “And that starts now. Want to invest in an election year? Think long term.”
