Republicans More Likely To Maintain a Retirement Savings Account Than Democrats
Personal Capital survey reveals retirement savings is one of the last concerns on Americans' minds, as the state of the economy, healthcare and terrorism top the list
SAN FRANCISCO, Aug. 9, 2016 /PRNewswire/ -- Today Personal Capital, the leading online financial advisory firm, announced findings from its 2016 Election Survey, which uncovers how Americans feel about their retirement future as they evaluate the presidential candidates. The survey finds that though Republicans are more likely to have a retirement account than Democrats, 1 in 5 Americans of working age have no retirement savings regardless of party affiliation, showing Americans are not well-prepared for their financial future.
The survey also finds that Americans believe that the state of the economy and healthcare are two of the most important problems facing the country (33 percent and 31 percent respectively), just behind the threat of terrorism (48 percent). Additional issues concerning Americans are crime (24 percent), immigration (23 percent), unemployment (21 percent), education (20 percent), morality (15 percent), war (14 percent) and the environment (12 percent). In spite of the economy being a major issue, personal finances are not, as few people (a mere 8 percent) list retirement security as a top concern going into this year's election.
"Regardless of who wins the presidency, there are 10,000 people who retire each day in this country, and that number is expected to remain the same until the last Baby Boomer turns 65 in 20301," said Bill Harris, CEO of Personal Capital. "If this survey shows us anything, it's that we all need to see retirement savings as a priority, because we will all be impacted by it in the future."
Younger People From All Parties Are More Hopeful About Retirement
The survey found that Millennials (age 18-34) feel more secure about their retirement (20 percent) versus those aged 35-54 (12 percent). Younger people see education as a priority issue this election (31 percent), behind terrorism (43 percent) but ahead of the economy (28 percent), with only 7 percent listing retirement savings as a top issue.
"The increasing costs of higher education are having a direct impact on millennials who are holding off on saving for retirement," said Harris. "With the average new graduate saddled with $37,172 in debt, up from about $35,000 last year2, that may seem like the logical choice today. But, our fear is that this group will hold off until it's too late."
Both Trump and Clinton Presidencies Mean Retirement Concerns
Unsurprisingly, Americans are worried about the consequences of their preferred candidate not winning the election. When asked about retirement, 64 percent of Republicans and 18 percent of Democrats are 'more worried' about their retirement savings if Clinton is elected, while 59 percent of Democrats and 15 percent of Republicans are 'more worried' about their retirement savings if Trump is elected.
Retirement woes by the numbers:
- Total Millennials from both parties feel 'very unfavorable' toward Trump (57 percent) and are 'more worried' about retirement savings if he is elected (49 percent)
- Households that earn under $50K say they are 'more worried' if Trump is elected; households that earn over $50K say they are 'more worried' if Clinton is elected
- Only 19 percent of Clinton supporters and 18 percent of Trump supporters report feeling 'confident' with their retirement savings
"Both parties have devoted sections of their official 2016 platforms to Social Security and how they will address retirement security if they are in the White House," continued Harris. "We know that with the growing cost of healthcare, education and the shifting economy, Americans will only be able to retire comfortably by planning and saving for the future - no matter who wins the election."
This survey was conducted online within the United States by Ipsos on behalf of Personal Capital. For questions, please contact [email protected].
To learn more about Personal Capital, please visit www.personalcapital.com.
Methodology:
This survey was conducted online within the United States by Ipsos on behalf of Personal Capital from June 17-19, 2016 among 1,005 U.S. adults ages 18 and older, among which 298 are Millennials ages 18-34. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. Of those surveyed, 41 percent identified as Democrat, 29 percent identified as Republican and 17 percent indicated they were an independent. For complete survey methodology, including weighting variables, please contact [email protected].
About Personal Capital
Personal Capital is the smart way to track and manage your financial life. Personal Capital combines award-winning online financial tools that provide unprecedented transparency into your finances with personal attention from licensed financial advisors. The result is a complete transformation in the way you understand, manage and grow your net worth.
1 Pew Research Center, 2010: http://www.pewsocialtrends.org/2010/12/20/baby-boomers-approach-65-glumly/
2 International Business Times, 2016: http://www.ibtimes.com/student-debt-crisis-2016-new-graduates-owe-record-breaking-average-37000-loans-2365195
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SOURCE Personal Capital
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