With just less than three weeks to go until the U.S. presidential election, American investors are following how the economy will swing leading up to the first Tuesday in November.
The Risk Tolerance Tracker study by insurance solutions provider F&G Annuities & Life asked Americans about how the state of the economy over the past year has influenced their views on retirement and risk, noting that 80% of respondents continue to list inflation as a top stressor. Other leading worries include the presidential election (72%), with 48% of respondents adding that they expect it to have an impact on their retirement plans. Seventy-two percent say they continue to have worries about a recession, while others listed cybercrime/fraud (63%), geopolitical risks/tensions (61%), historically high debt (59%), stock market volatility (59%), and the impact of generative AI on finances (50%) as leading concerns.
Events of the past 12 months have led some to be wary of financial risks. Seventy-three percent say they are now less likely to take on financial risks, down from 78% of investors in 2022. Furthermore, 66% say they worry about retirement income due to the current state of the economy and global affairs, a 3% decrease from 2023.
Over half (58%) of survey respondents do not use a financial professional, including 53% of Baby Boomers and 63% of Gen Xers, reports F&G. Only 14% also said they own an annuity, even as 88% of respondents ranked guaranteed income as an important factor when considering investments for retirement income.
“Our fifth annual survey shows that while risk tolerance is modestly increasing, uncertain economic factors continue to weigh on the minds of American investors,” said Chris Blunt, CEO of F&G. “Yet at the same time, many investors are not taking advantage of the tools they need to plan for the long term, such as leveraging an advisor and building a balanced portfolio that includes guaranteed income products. Being proactive now can give investors more peace of mind in the months and years to come.”
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