Pre-Election Uncertainty Drives Americans to Save More, Spend Less and Pursue New Income Opportunities
As the November election looms, Americans are bracing for potential financial challenges and taking proactive steps to safeguard their financial well-being, according to Americans’ Financial Outlook and the 2024 Election,the latest CFP Board research report.
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The study found that nearly 4 in 5 Americans expect their personal finances to decline if their preferred candidate loses the presidential race. 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%).
“In times of uncertainty, sound financial advice is more important than ever,” said CFP Board CEO Kevin R. Keller, CAE. “Working with a CFP® professional can help people make informed decisions, protect their finances and stay on track to achieve their long-term goals — regardless of the election’s outcome.”
Financial Issues Impact Voting DecisionsFinancial issues are impacting Americans’ voting decisions, with a resounding 92% 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 More and Seek Financial AdviceIn 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 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, Ph.D., Managing Director of Researchat CFP Board. “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.”
CFP® professionals work with their clients to identify and prioritize goals and map out strategies to achieve financial security — and Americans are taking note: 1 in 8 Americans have partnered with a financial planner for guidance on the impact of the current political environment.
To find a CFP® professional who can help you achieve your financial goals, visit LetsMakeAPlan.org.
Read the full Americans’ Financial Outlook and the 2024 Electionstudy.
METHODOLOGYOn August 8-9, 2024, CFP Board’s Research team sent a 12-question survey to randomly selected 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 error of +/-3.1% at the 95% confidence interval.
ABOUT CFP BOARDCFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public’s benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER® certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by more than 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession’s body of knowledge.
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