Most Americans fear financial decline if their preferred candidate loses

Nearly 4 in 5 Americans expect their personal finances to decline if their preferred candidate loses the presidential race, according to Americans’ Financial Outlook and the 2024 Election, the latest CFP Board research report.

Due to this concern, as the November election approaches Americans are bracing for potential financial challenges and are taking proactive steps to safeguard their financial well-being.

Despite this widespread concern, public sentiment is more nuanced. While nearly half of Americans (45%) feel anxious about the upcoming election, most remain optimistic about its potential to benefit the U.S. economy (58%) and their personal financial well-being (51%).

Financial issues impacting voting

In addition, financial issues are impacting Americans’ voting decisions, with a resounding 92% of respondents agreeing that cost of living and inflation are important considerations when choosing a candidate. Personal income growth (85%), tax policies (82%), housing costs (82%) and interest rates (81%) are also key issues. In addition, at least 3 in 4 Americans consider the long-term viability of Social Security (80%) and Medicare (76%) when choosing a candidate.

While half of Americans anticipate feeling less financially secure if their preferred candidate loses the November election, specific concerns vary across party lines. According to the research, Republicans are more concerned about financial challenges like higher taxes (47%, compared to 34% of Democrats and 33% of independents) and greater difficulty paying bills (43%, compared to 33% of Democrats and 30% of independents) if their candidate loses. Meanwhile, Democrats are more focused on potential increases in healthcare costs (36%, compared to 27% of Republicans and 28% of independents).

Election uncertainty prompts Americans to save

In anticipation of the election, Americans are increasing savings (37%), decreasing spending (34%) and looking for additional sources of income (24%). In addition, more than 3 in 5 Americans (63%) are deferring financial decisions until after the November election, about a quarter (26%) are putting off taking a vacation, and roughly 1 in 5 are holding off on buying a car (21%) or a home (20%).

“The upcoming election is causing many Americans to reassess their financial strategies, with a significant number choosing to delay major decisions until the results are known,” said Kevin Roth, managing director of research at CFP. “This cautious approach highlights the importance of working with a CFP professional who can provide objective advice and help clients navigate political and economic uncertainties, ensuring that they remain focused on their long-term financial security.”

Calming clients’ fears

Elections are messy, but the fear of the unknown always appears bigger than the reality of what plays out, noted Brian Haney, as he offered insights on some of the methods that can be used to calm clients’ fears. Haney is CEO of The Haney Company, association and non-profit specialists. Historical data shows that markets tend to anticipate election impacts in advance of the elections themselves and rebound relatively quickly, often in the first year after a new president takes office, he pointed out.

Additionally, Haney said that “the data supports us having a steady perspective because, while some correlations may exist in varying degrees as to the impact of elections on the markets, we encourage our clients to focus on what ultimately matters over the longer term: the economy, business fundamentals, and maintaining a long-term strategy.”

As advisors work with their clients, Haney said that they should remind them of this: “You developed a strategy with your financial advisor that didn’t only work in ideal market conditions, but anticipated and accounted for volatility as well, regardless of what contributed to that volatility. Help them stay calm and refocused by reminding them that the fundamentals matter, as does rising above the noise to not let the emotions of the environment cloud the bigger picture of staying on the long-term track that will lead you to success.”

From August 8-9, 2024, CFP Board’s research team sent a 12-question survey to randomly select American adults nationwide as sourced by Alchemer. The panel ensures the data collected reflects a reliable demographic and geographic representation of the U.S. population. The survey generated 1,005 responses, the data from which serves as the basis of this report and is subject to a sampling of a reliable demographic and geographic representation of the U.S. population.

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