Four out of five (80%) of American investors cite inflation as their top concern, while worry about the upcoming U.S. presidential election is cited by 72%, according to a survey by F&G Annuities & Life.
F&G’s Fifth Annual Risk Tolerance Tracker asked American investors how the events of the past 12 months have impacted their views on retirement and risk, as well as the issues they are concerned about for the year ahead.
Inflation continues to be the top stressor, with 80% of respondents worried about it negatively affecting their financial future. Among the 72% who cited the presidential election, 48% said they expect it impact their retirement plans.
Other leading stressors are recession fears (72%), cybercrime/fraud (63%), geopolitical risks/tensions (61%), historically high debt (59%), stock market volatility (59%) and the impact of generative AI on finances (50%).
American investors do see some signs of improvement, although many fears remain.
Among respondents, 73% said the events of the last 12 months made them less likely to take financial risks. This is down from the past two years when 78% of respondents said they had become more financially risk averse.
Retirement income fears were cited by 66%, down 3% from 2023.
Fewer people (53%) fear that their financial safety net was breached compared to 60% in 2023 and 67% in 2022.
Among the generations, Baby Boomers are the most worried about the U.S. presidential election having a negative impact on their financial future (79%), compared to Generation X (72%) and Millennials (64%).
GenX respondents are most concerned about the U.S. entering a recession (76%), compared to Millennials (72%) and Baby Boomers (69%).
All generations continue to cite inflation as the top worry that may affect their financial future.
Despite their concerns, 58% of respondents don’t use a financial professional. Among Baby Boomers, 53%, and among GenX, 63%, don’t use a financial professional.
