The gap between policy awareness and investor conversations

A concerning gap exists between widespread investor awareness of policy issues and meaningful planning conversations that address these risks, a recent survey revealed.

Jackson National Life conducted the survey in collaboration with the Center for Retirement Research at Boston College and is the fifth installment in Jackson’s Security in Retirement Series. The survey shows that despite heightened concern about potential changes to Social Security, Medicare and tax policy, many investors – even those working with financial professionals – are unclear about how these shifts could affect their personal retirement plans.

Policy changes anticipated

“Our research indicated that investors anticipate significant policy changes to several key government programs,” said Glen Franklin, Jackson National Life Distributors assistant vice president of research, RIA and lead generation strategy.

Among the specific programs that the survey asked about, Franklin said that 65% of investors expect cuts to Medicaid benefits, 46% anticipate reductions in Social Security benefits, 68% foresee rising Medicare premiums and co-pays, 53% predict an increase in Social Security taxes, and 53% worry their state will need to raise taxes to compensate for federal funding shortfalls.

But financial professionals are less convinced that policy changes will be made, he said. “Among the financial professionals who were surveyed, 46% expect cuts to Medicaid benefits, 24% believe there will be reductions in Social Security benefits, 52% anticipate rising Medicare premiums and co-pays, 33% believe there will be an increase in Social Security taxes, and 29% worry that their state will need to raise taxes or cut services due to less federal support.”

Impact of these changes

How will some of these changes affect investors' retirement plans? According to Franklin, the study revealed that 21% of the pre-retired investors who were studied have delayed their planned retirement date since the start of 2025. “This may be the result of decreased confidence in government (61%) or thinking the government will weaken their financial security in retirement (47%),” he said.

The study found that Generation X investors expect greater personal impact from potential tax and policy changes. Meanwhile, baby boomers have a steadier outlook, despite being more reliant on existing programs. “Among Gen X investors we surveyed, 76% said a 5% federal tax rate increase would require spending changes. compared with 65% of baby boomers,” Franklin said.

And Gen Xers surveyed were also more likely to express concerns about their financial futures, Franklin added. “Since the start of 2025, 46% of Gen X investors that we surveyed have had an increased concern about their financial future, while only 36% of Gen X investors feel very or extremely secure about their current financial situation, compared with 46% of boomers. Gen X investors are also more likely than baby boomers to own downside-protection products and to have increased those holdings during 2025,” he said.

Helping to close the gap

And what steps can financial professionals take to help close the gap between investors’ awareness of a changing policy landscape and their understanding of how those changes can affect their personal retirement planning?

Franklin said that while concerns about the potential impacts of policy risk are rising, the research found that conversations about the issue remain limited. “Among the investors we surveyed, only 36% of those working with financial professionals discuss Medicaid and long-term care funding, while 54% discuss federal debt levels and tariff policies,” he added.

And among the financial professionals surveyed, 53% said they only engage in policy discussions when the topic is deemed important, and another 28% neither avoid these conversations nor seek them out, suggesting passive rather than proactive engagement, according to Franklin. Among the reasons that financial professionals gave for avoiding these topics, client sensitivity and concern about appearing political were the primary reasons mentioned.

“When discussing these issues with their clients, financial professionals should frame policy topics in a calm, fact-based and nonpolitical way that helps investors understand why the issue matters without feeling overwhelmed by it,” Franklin said. “Additionally,” he said, “simple, easy-to-run stress tests of 'what-if' scenarios can help financial professionals and their clients see that potential policy changes, such as tax increases or changes to benefit amounts, are manageable when plans are flexible and include contingency options.”

The research was conducted between July 7 and July 31, 2025, and included online surveys of more than 400 financial professionals and 1,443 investors aged 45 to 79 with at least $100,000 in financial assets, representing both Generation X and baby boomers. Respondents were required to participate in, or lead, household financial decision-making.

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