Retirement Advisors More Confident in U.S. Economy, But Election Anxiety Rises

Retirement advisors and their clients are feeling a mix of emotions this month as they navigate the ever-changing landscape of the U.S. economy and the upcoming presidential election. According to the latest data from Arizent’s Retirement Advisor Confidence Outlook (RACO), there is a slight uptick in confidence regarding the economy, but anxiety is on the rise when it comes to politics.

In June, RACO’s overall score saw a sudden increase to minus-4, breaking a three-month losing streak and marking the first time the score has risen since February. While clients may be feeling complacent and volatility is low, the looming election has everyone on edge. Out of 191 survey responses, 48 mentioned the election as a top concern, surpassing worries about inflation, stock volatility, and interest rates combined.

Despite the anxiety surrounding the election, RACO’s data showed improvement in various areas. Client risk tolerance and asset allocation scores increased, while practice performance saw a significant jump. Advisors remain cautiously optimistic about the Federal Reserve potentially cutting rates in the near future, especially with recent positive inflation data.

While confidence in government policy and the overall economy improved in June, concerns about the global economic system and geopolitical issues persist. The election remains a primary source of worry for both clients and advisors, with fears of a disputed outcome and potential market impact looming large.

As advisors navigate these uncertain times with their clients, the consensus is clear: the election will continue to be a major point of concern in the months ahead. Despite differing opinions on the timeline and potential outcomes, one thing is certain – the road ahead is paved with uncertainty, and advisors are working diligently to guide their clients through it.