Retirement Security Concerns Rise Post-Election

The American College of Financial Services Survey Reveals Health Care and Social Security Among Top Investor Worries

BRYN MAWR, Pa.--()--As President-Elect Donald Trump prepares to enter the White House in only a few short days, investors are expressing a degree of apprehension and concern over what might lay ahead and how potential policy changes could impact their retirement. These findings are based on an American College of Financial Services poll of 419 Retirement Income Certified Professional® (RICP®) designation holders from January 4-6, 2017.

“Coming out of a highly contested election season, it is no surprise that many retirees feel a bit wary about their retirement security,” said David Littell, Retirement Income Program Co-Director at The American College of Financial Services. “Over the next few weeks and months, we will get a clearer look at potential policy changes. At this moment, investors are feeling worried about what they cannot foresee. We found that advisors are keenly aware of their clients’ moods and recognize that there are no ‘one size fits all’ retirement plans in the face of an unpredictable future.”

Concerns Over Retirement Security

When advisors were asked if they were more concerned about their clients’ retirement security post-election, more than half (53%) reported that the election results have increased their concerns, while 23 percent felt the election has had no impact. 24 percent believe the election has improved the outlook for their clients’ retirement security.

Advisors report that clients’ leading concerns are focused on potential post-election changes to health care (27 percent) and Social Security (22 percent).

Market Highs After Election Day

In response to all-time high markets after the election, over half of advisors polled, 53 percent, have told their clients to stay the course. Additional findings include:

  • 40 percent of advisors were taking risk off the table for their retired clients by buying income annuities.
  • Half of advisors (50%) said that they were rebalancing their retirement client investment mix to lock in gains or reduce risk.
  • A very low percentage of advisors, at 5 percent, are encouraging their retired clients to invest more heavily in the market.

Potential Market Volatility

Many advisors believe we’re heading for greater market volatility this year:

  • Roughly 60 percent of advisors believe more volatility is on the horizon.
  • 77 percent of advisors felt that any changes to retirement income plans due to increased market volatility will depend on individual client situations.

“Regardless of what is ahead during this new administration, the bottom line is clear,” continued Littell. “Advisors need to take this opportunity to sit down, talk with their clients about their current retirement plan and reassure them they are on the right path for retirement.”

Advisors can learn more about the RICP® program by visiting TheAmericanCollege.edu/RICP, while consumers can learn about this credential and others at DesignationCheck.com™.

About The American College of Financial Services

The American College of Financial Services is the nation’s largest non-profit educational institution devoted to financial services. Holding the highest level of academic accreditation, The College has served as a valued business partner to banks, brokerage firms, insurance companies and others since 1927. The College’s faculty represents some of the financial services industry’s foremost thought leaders. For more information, visit TheAmericanCollege.edu.

About the New York Life Center for Retirement Income at The American College of Financial Services

The New York Life Center for Retirement Income at The American College of Financial Services serves to elevate the knowledge of financial service professionals in order to improve retirement security for Americans. It provides a website for advisors and supports the Retirement Income Certified Professional® (RICP®) designation, which educates financial advisors to help prepare the 76 million Baby Boomers and millions of older retirees who are concerned about the safety of their retirement income plans. To learn more about the New York Life Center for Retirement Income, go to http://retirement.theamericancollege.edu.

Contacts

For The American College of Financial Services
Nicolle Gallo, 212-446-1866

Contacts

For The American College of Financial Services
Nicolle Gallo, 212-446-1866