It’s not just the Democrats who are wringing their hands over Donald Trump's move into the White House Friday. More retirement and pre-retirement investors are growing anxious about their financial security as a new, untested administration settles in.
An early January poll by the American College of Financial Services found that more than half of financial advisers — 53 percent — reported that the election results have increased their concerns, while 23 percent felt the election has had no impact. On the other hand, 24 percent believe the election has improved the outlook for their clients’ retirement security.
Top concerns post-election: healthcare, cited by 27 percent of advisers, and Social Security, with 22 percent.
"Coming out of a highly contested election season, it is no surprise that many retirees feel a bit wary about their retirement security," David Littell, retirement income program co-director at The American College of Financial Services, said in a statement. "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 advisers 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."
Other poll findings:
*53 percent of advisors have told their clients to stay the course.
•40 percent were taking risk off the table for their retired clients by buying income annuities.
•Half said that they were rebalancing their retirement client investment mix to lock in gains or reduce risk.
•Only 5 percent, are encouraging their retired clients to invest more heavily in the market.
• About 60 percent of advisors believe more volatility is on the horizon.
The report was based on a poll of 419 Retirement Income Certified Professional (RICP®) designation holders by the American College of Financial Services, a non-profit educational institution devoted to financial services.