As Americans await Election Day results, a Lincoln Financial Group report examined the potential effects of the presidential election on retirement savings.
According to the report, the majority of both Democratic and Republican workers are preparing or planning to prepare for any impact that election night could have on their investments or retirement accounts. Fifty-two percent of Democrats said they are preparing for an impact to their retirement account, while 54% of Republicans noted the same.
When asked what would impact their ability to stay on track with their retirement savings and future financial goals, 34% of Republicans said the outcome of the election would hinder their savings, 24% of Democrats said having a better understand of the products and solutions available to them would help them, and 42% of independents reported having more time and/or money would help.
Along with those concerns, the Lincoln Financial report also finds some workers are uncertain or confused when it comes to how they should prepare their retirement plans ahead of the election results. About one in 10 say they would like to be planning, but they don’t know what they should be doing.
However, despite their trepidations and anxieties on election night, Americans are feeling hopeful about their financial planning in the current market, according to the study. It’s possible their worries are being addressed with the help of a financial planner or adviser. Workers are speaking to financial professionals and making changes to their retirement accounts, including by looking at current investments, says Liz Casals, vice president of consumer insights for Lincoln Financial Group, in an interview with PLANADVISER.
Financial worries have been an ongoing trend in 2020, and not just as a result of the election. COVID-19 led many workers to feel financially stressed earlier this year. According to Lincoln’s Monthly Consumer Sentiment Tracker released in July, 41% of full-time employed U.S. adults said they would like to save more for retirement as a result of the crisis. Thirty-five percent said they would expand emergency savings, and 30% reported they would create or revise their budgets.
Numbers were similar for those who were employed but earning less as a result of COVID-19. Thirty-eight percent said they wanted to save more for retirement, 35% wanted to add to emergency savings and 27% said they would create or revise their budget.
Regardless of political affiliation, workers are thinking more about financial planning as a result of the pandemic, the Lincoln Financial study finds. Forty percent of Democrats are taking their financial planning more seriously due to COVID-19, and 39% of Republicans and 35% of independents are doing the same.