‘What about my nest egg?’ With an eye on the election, Americans are worried about their 401(k)s

As the U.S. presidential election approaches, Americans are apprehensive about how whoever wins – Former President Donald Trump or Vice President Kamala Harris – may affect their personal finances and their retirement plans in particular, according to new research from Wealth Enhancement.

About 80% of Americans are bracing for the impact of political outcomes on their retirement plans, including 73% who are already retired. Americans’ apprehensions span from immediate economic concerns—like inflation and the cost of goods and services (49%) or how much they will pay in taxes (39%)—to longer-term worries about the impact of the election on their retirement plan (80%) These worries include whether they will be able to rely on government programs like Social Security or Medicare (31%), and how the election might affect the performance of their investment portfolio (23%).

Two in 10 (19%) Americans believe the election will affect when they retire—a concern most prevalent among Gen Z (29%), according to the study of 1,000 U.S. adults. Americans who have not retired yet also fear inflation has set back their retirement goals, delaying them by nearly 8.5 years on average (55%).

Millennials are the most likely to express confidence in their retirement plans, with 37% saying they are on target and 5% saying they’ve already met their goals. Millennials’ confidence even outpaces baby boomers’, with just 22% saying they are on track and 14% saying they have hit their goals—making for a total of 35% who feel solid about their retirement plans.

“Historically, the outcomes of elections have had very little long-term impact on market performance,” says Ayako Yoshioka, a Portfolio Consulting Director at Wealth Enhancement, a wealth management firm. “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.”

Less than half (48%) of U.S. adults believe they have “done everything right” to prepare for retirement—and even fewer working adults (35%) think they have met or are on track to meet their retirement goals. Three in five Americans (61%) have concerns about running out of money during retirement.

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Most U.S. adults are leaving valuable, comprehensive financial planning solutions on the table, with only 19% regularly meeting with a financial advisor to discuss their retirement plan. For those not yet retired, 18% haven’t set any retirement goals at all.

“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 says, “and that starts now. Want to invest in an election year? Think long term.”

“A retirement plan should factor in lifetime earnings and life expectancy,” says Kate Maier, JD, CFP®, CTFA , Vice President, Private Client at Wealth Enhancement. “Generally, health care costs rise as we get older which is a very real consideration for retirees. A financial advisor can help work through the details for a plan that makes sense given their individual considerations.”