Edward Jones Study: Most Americans Believe Trump Administration Will Impact Retirement Income Strategy

PR Newswire

ST. LOUIS, Feb. 1, 2017 /PRNewswire/ -- A majority of Americans (57 percent) believe that the new presidential administration will impact their retirement savings income strategy, according to a recent study from Edward Jones. Nearly half (48 percent) of respondents also anticipate an increase in market volatility throughout the first quarter of this year.

The study, which was conducted between January 19-22, took into account the opinions of 1015 interviewees across generations, regions and income levels.

"Regardless of what the perceived impact of the new administration is, it's important to focus on what you can control, and avoid making rash decisions based off emotion, especially where retirement planning is concerned. While we may experience near-term bouts of volatility, consulting with a financial advisor and focusing on a long-term savings and investment strategy can help prevent reactionary decision making and keep financial goals on track during a time of uncertainty," said Scott Thoma, Principal and Retirement Strategist for Edward Jones.

The short-term investment implications of the new administration are also top of mind for many investors. Of those Americans with investments, 42 percent believe that the new administration will positively impact their portfolio in the coming year, with only one-quarter (27 percent) of respondents indicating the opposite - that the new administration will have a negative effect on their assets.

"Stock prices, interest rates and the value of the U.S. dollar have all risen since the election due to optimism about expected pro-growth policies. We think economic growth will improve modestly, and that's good news for investors" said Kate Warne, Principal and Investment Strategist for Edward Jones. "Some changes have happened quickly, but investors are likely to need patience as other initiatives could be delayed or disappoint, potentially increasing market volatility."

Similarly, when taking a long-term view of the impact of the Trump administration, three quarters of those surveyed believe their investment assets will be impacted, with nearly half (46 percent) anticipating a positive effect. When examining the various generations, Baby Boomer investors, or those ages 53-71, are the most optimistic, with 52 percent anticipating a positive long term impact compared to Millennial (39 percent) and Gen-X (48 percent) investors, who indicate the same.

Methodology

This survey was conducted by ORC International's Telephone CARAVAN® Omnibus on behalf of Edward Jones. The survey was conducted among a nationally representative sample of 1015 respondents from January 19-22, 2017.

About Edward Jones

Edward Jones, a FORTUNE 500 firm, provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm's business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm's 13,000-plus financial advisors work directly with nearly 7 million clients. Edward Jones, which ranked No. 10 on FORTUNE magazine's "100 Best Companies to Work For 2016," is headquartered in St. Louis. The Edward Jones Web site is located at www.edwardjones.com and its recruiting Web site is www.careers.edwardjones.com. Follow Edward Jones on Twitter @EdwardJones and visit the firm's Facebook site at www.facebook.com/edwardjones. Member SIPC.