Americans Brace for Election’s Impact on Retirement Planning

As the U.S. presidential election draws near, a retirement lifestyle study from Wealth Enhancement Group LLC shows that 80% of Americans are preparing for potential changes to their retirement plans based on the political outcome, including 73% of those already retired.

Among respondents, 23% said they worry about the election’s impact on their retirement portfolios. The study also found that 55% of unretired Americans fear inflation has delayed their retirement goals, with the average setback estimated at more than eight years.

Inflation concerns are a major focus heading into the election, with 49% of respondents worried about the rising cost of goods and services and 39% anxious about future tax implications. These concerns are compounded by apprehension over government programs like Social Security and Medicare, with 31% of those surveyed, including 38% of Baby Boomers, reporting concern about future stability, according to the study.

Despite these short-term worries, Americans reported being generally optimistic about their long-term retirement lifestyle, with 77% expressing positive emotions such as happiness (45%) and gratitude (37%), according to the survey. Among retirees, 90% reported satisfaction with their decision to retire when they did, and 33% said their retirement is even better than they anticipated.

Generation Z is particularly anxious, with 29% fearing the election will affect their retirement timeline, despite historical data showing U.S. markets tend to perform well in election years.

“Historically, elections have had minimal long-term effects on market performance,” stated Ayako Yoshioka, a portfolio consulting director at Wealth Enhancement, in the report. “Anyone concerned about the election should connect with their advisor to ensure their financial plan is resilient, no matter who wins. … Want to invest in an election year? Think long term.” 

Even as economic uncertainty looms, retirees generally reported a more positive outlook than their working counterparts, with 60% feeling happy and 51% expressing gratitude, significantly higher than the 40% and 33%, respectively, of working adults. While concerns remain, only 19% of those surveyed reported regularly meeting with a financial adviser.

However, in contrast, those still in the workforce reported lower levels of happiness (40%) and gratitude (33%). Instead, working adults tended to report more anxiety (37%, vs. 16% of retirees) and fear (26%, vs. 8% of retirees).

Nearly 69% of Gen Xers reported negative emotions, such as anxiety (39%), likely influenced by the fact that 25% of non-retirees said they have not set retirement goals.

The study, conducted by Wakefield Research in July, surveyed 1,000 U.S. adults through an online poll representative of U.S. adults ages 18 and older.

Wealth Enhancement recently told PLANADVISER the firm was nearing $5 billion in retirement plan assets as it builds the practice with wealth management services. Its total assets are about $85.7 billion.