The Election's Impact on Your Wallet: Americans Feel the Stakes in 2024

The Election's Impact on Your Wallet: Americans Feel the Stakes in 2024

Introduction:

The 2024 Presidential election is more than just a political contest for many Americans. It's a referendum on their financial future. A new study from Empower reveals that a significant majority of Americans believe the outcome of this election will directly impact their personal finances, from retirement plans to everyday spending. This article delves into the survey findings, exploring the specific concerns and financial strategies Americans are adopting based on their perceptions of the election's potential influence.

The Election's Impact on Financial Well-being:

• A Direct Link: Over half of Americans (50%) believe the outcome of the 2024 Presidential election will directly impact their personal finances. This sentiment is particularly strong among the Middle Class, with 27% of those earning between $50,000 and $100,000 believing the election will determine their wealth status.

• Beyond Inflation and Prices: While many (42%) are hoping the winning candidate will address inflation and make everyday expenses more affordable, the concerns extend beyond rising prices. One third (33%) believe the election outcome will impact their ability to reach their personal financial goals, like buying a home, a sentiment particularly strong among Millennials (42%).

• Retirement Concerns: Over a third (34%) of Americans see the election as a critical factor in their retirement plans and financial security. This is reflected in the fact that 30% believe the winner will impact their retirement timeline, potentially requiring them to work longer or experience a shorter retirement, especially for younger generations (40% Gen Z, 39% Millennials).

Financial Strategies in Response to Election Uncertainty:

• Emergency Savings and Frugal Spending: In response to election-related financial anxiety, 41% of Americans plan to increase their emergency savings, save more cash overall, and be more frugal with their spending. This trend is even stronger among Millennials, with 48% planning to save more.

• Investment Decisions: A significant number of Americans (23%) are considering adjusting their investment strategies based on the election outcome, with Millennials (32%) particularly likely to invest more in the stock market. Others (34% Millennials) are planning to rebalance their portfolios, while a smaller group (18% overall, 27% Millennials) are considering more drastic measures like withdrawing or liquidating investments.

The Economy and the Job Market:

• Economic Uncertainty: Americans are divided on the economic impact of the election, with 30% anticipating a recession and 32% predicting an economic boom. However, a strong majority (67%) express concern about the state of the economy depending on who wins.

• Job Security Concerns: While 57% believe the election will affect the job market, nearly a third (29%) say they are worried about job security regardless of the outcome.

Workplace Dynamics:

• Politics vs. Finances: Interestingly, 33% of Americans feel more comfortable asking for a raise at work than discussing politics with colleagues. However, overall, Americans prefer talking about politics (53%) than their personal finances (35%).

• Election Impact on Employment: Over 30% believe the election will influence their employer's financial performance, while 22% anticipate an impact on their work bonus.

• Election Day Productivity: Nearly 1 in 5 (19%) Americans, especially younger generations (29% Gen Z, 27% Millennials), admit they will be less productive at work during the election. A third (41% Millennials) are taking time off to vote, and many (34% overall, 42% Millennials) plan to spend significant time watching election coverage at work.

The Importance of Retirement Planning:

• Retirement Security: Inflation, the state of the economy, and access to retirement plans are top concerns affecting Americans' ability to retire on time and securely.

• Retirement Uncertainties: Voters are divided on how the election will affect their retirement plans. While 29% believe it will lead to greater retirement savings, 26% feel they will never be able to retire. Despite these uncertainties, 31% remain optimistic about their financial security in retirement.

Conclusion:

The 2024 Presidential election is a significant event for Americans, impacting not just their political views but also their personal finances. The Empower study reveals a deep connection between the election outcome and financial well-being, prompting Americans to adjust their savings, investment, and spending habits. The study also highlights the importance of long-term financial planning, particularly as retirement concerns loom large in the face of economic uncertainties.

Keywords:

Presidential Election, 2024 Election, Finance, Financial Planning, Retirement, Inflation, Economy, Job Market, Savings, Investing, Millennials, Gen Z, Empower, The Ticket: Money and Politics, Financial Security, Economic Uncertainty, Workplace Dynamics.

Call to Action:

The 2024 election is a pivotal moment for Americans, offering an opportunity to advocate for policies that support their financial well-being. Take charge of your financial future by reviewing your savings, investment strategies, and retirement plans in light of the election's potential impact.

About the Study:

Empower's "The Ticket: Money and Politics" study is based on online survey responses from 2,200 Americans ages 18+ fielded by Morning Consult between July 22-24, 2024. The survey is weighted to be nationally representative of U.S. adults (aged 18+).