Eight in 10 Americans worried over election's impact on their nest eggs

Eight in 10 Americans worried over election's impact on their nest eggs
Survey uncovers widespread concerns around inflation, Social Security, and tax increases' potential implications for retirement security.
SEP 17, 2024

As the upcoming US presidential election develops into a dead heat, many Americans are expressing growing concerns over its potential impact on their financial future, particularly their retirement plans.

That's according to a new study by Wealth Enhancement Group, which found that eight in 10 Americans are worried about how the election could affect their retirement savings.

The election's financial impact is particularly concerning for younger generations as nearly 29 percent of Gen Z respondents in Wealth Enhancement's study believe the election will influence when they can retire, compared to 19 percent of the general population.

But Ayako Yoshioka, portfolio consulting director at Wealth Enhancement, was quick to point out that presidential races are not likely to have much bearing on people's retirement portfolios.

“Historically, the outcomes of elections have had very little long-term impact on market performance,” Yoshioka said in the report.

In addition to retirement concerns, the study reveals nearly half of Americans (49 percent) are anxious about inflation and rising costs. For 55 percent of non-retired Americans, inflation has translated into an estimated delay of eight-and-a-half years in retirement plans on average.

Another two-fifths (39 percent) of people in the survey shared worries about potential tax increases, as factors such as the looming expiration of Trump-era tax cuts and the country's $34 trillion debt problem grow in urgency.

A significant number of participants also shared doubts about the reliability of government programs like Social Security and Medicare (31 percent), with forecasts estimating Social Security trust funds will run out in 10 years, and the potential impact on investment portfolios (23 percent).

Many Americans remain optimistic about retirement, with nearly four fifths (77 percent) reporting positive emotions such as happiness (45 percent) and gratitude (37 percent). The study also highlights the ambitions Americans have for their retirement years, with 58 percent planning to travel and 41 percent aiming to take up new hobbies.

Still, only one in two respondents believe they've "done everything right" to get ready for retirement, with just a third of working adults (35 percent) convinced they're on track or have hit their retirement goals. And for three in five Americans (61 percent), running out of money in retirement is a real point of concern.

Wealth Enhancement's polling suggests adults can do more to set themselves up for a good retirement, as just one in five of those polled said they regularly discuss their retirement plans with a financial advisor.

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