The 2016 presidential election is nothing if not polarizing – but ask most Americans and they can agree on one thing: they’re worried about the markets whether it’s a new Mr. or Madam President that takes office this January. And according to an analysis of markets during elections past, we expect that there will at least be a spike in short term volatility around Election Day.
The fact of the matter is that markets aren’t concerned about who wins, but many individual investors are. At this point, most experts predict a Clinton win, but if Trump does get elected, we still might see a knee-jerk market reaction downward due to the uncertainty it would bring. Let’s take a step back though. So many voters today are only thinking about money in terms of the economy this election season – and very few are thinking about their money beyond the four years we’re currently voting for.
What Does The Election Have To Do With Retirement?
Today 10,000 Americans retire daily, and that number will only increase when Millennials – the largest generation in the U.S. ever – enter retirement. While most Millennials are still 40 years away from retirement, we’ll see millions of Boomers and Gen X’ers reach retirement age long before Millennials even start thinking about it. And guess what? Whether you’re 20 or you’re 70, it’s important to evaluate how the candidates you support (and even the ones you don’t) will affect your personal finances, such as the security of your retirement. So we set out to reveal if the candidate you’ll be voting for makes a difference in how you feel about your retirement security, healthcare, education or taxes. After polling the people of America in our election survey, we found out it does.
The Results Are In
At the time of polling, Americans were worried about their money regardless of who takes over after Barack Obama. But they’re not as worried as they should be about the things their votes actually have the power to change. Here’s the thing – outside of voting, there is little the average American can do about the economy or the stock market. We can and should worry about those things, but should they be our biggest worries? Nope. In addition to caring about broad political issues that affect our quality of life, it’s just as important to care about the improvements we have the power to make in our daily lives – things like finally starting that retirement plan, paying down debt, or improving spending habits to be better off in the long-term. To see how the average American feels about their retirement security going into this year’s election, check out our survey video:
The truth is, regardless of who wins the 2016 Presidential Election stocks don’t care about good presidents and bad presidents. Historically, presidents and policy don’t have much impact on the stock market. It will always go up and down and as a long-term investor, you shouldn’t let your political views design your investment strategy.
1. Retirement Woes Based on Candidate: Slightly more Americans are worried about the effect on their retirement savings if Hillary Clinton becomes president. Over two-thirds of Republicans are very worried about their retirement savings if Clinton gets the vote. Less than 3/5 Democrats are worried about their retirement savings if Donald Trump is elected.
2. Retirement Savings by Party: Republicans are more likely to have a retirement account than Democrats.
3. Millennial Views on Donald Trump: Regardless of party, Millennials don’t have an overwhelming amount of faith in Trump when it comes to their retirement security. 49% are worried about their retirement if he wins the presidency.
4. Concerns Going into the Election: Retirement savings just isn’t a top concern for Americans. When surveyed, retirement savings came in 2nd to last out of the 12 most important problems facing the U.S. today.
This survey was conducted online within the United States by Ipsos on behalf of Personal Capital from June 17-19, 2016. For complete survey methodology, including weighting variables, please contact [email protected]
Latest posts by Personal Capital (see all)
- Facebook Live Video: Reuters Money & Bill Harris Chat Taxes - April 5, 2017
- Bloomberg Video: Personal Capital CEO Says Banks Need to Change Attitude - February 28, 2017
- Report: Is Your Nest Egg Growing as Fast as it Should Be? - January 31, 2017