I’m Planning My Retirement: 9 Ways the Election Outcome Affects My Plan
Written by
Laura Beck
Edited by
Joe Evans
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Jane F. has been looking forward to her retirement for years.
“My Google calendar has a countdown!” she shared. The 71-year-old food service worker is watching the election closely because she knows the results could impact her retirement planning.
Here are 10 ways the election outcome will affect one retiree’s plans:
Social Security
“I’m counting on Social Security for part of my retirement money,” Jane said. “Whoever wins might change when I can get it or how much I’ll get.”
Of course, social security is important for most retirees. Any changes to it could affect many people’s plans — especially retirees.
Medicare Costs
“I worry about paying for healthcare. I hope the next president will keep Medicare costs low for retirees,” Jane shared.
Healthcare is one of the biggest expenses for older people. Changes to Medicare could make a big difference in how much money retirees have to spend.
Taxes
“I’ve saved money in my 401(k) for years,” Jane said. “The taxes I’ll pay when I take the money out might differ depending on who’s president.”
Tax rates can change how much of their savings retirees get to keep. It’s smart to think about this ahead of time.
Drug Prices
“My medications are expensive and I want to know what the candidates plan to do about high drug prices,” she said. “It’s unclear to me right now how these things will be affected, but I’m watching it.”
Many older people spend a lot on medicine. Lower drug prices could help retirees save money.
Stock Market
“I’m not sure how much the president actually affects the stock market, but I’m concerned and I’m looking into it,” shared Jane.
While presidents don’t control the stock market directly, their policies can influence it. This matters for people who have their savings invested – especially if they’re looking to dip into that money soon.
Inflation
“As anyone with two eyes can see, inflation has gotten pretty bad,” said Jane. “I’m watching this story like a hawk.”
When prices go up but your income doesn’t, it can be hard to make ends meet. This is a real concern for retirees.
Estate Taxes
“I want to leave money for my kids,” said Jane. “The rules about taxes on inheritances might change after the election.”
Estate planning can be complicated. Many retirees are paying attention to possible changes in the rules.
Retirement Account Rules
“The government sometimes changes the rules for retirement accounts. I want to be ready if I need to change how I save,” said Jane. “It’s stressful but I guess it’s a part of life!”
It’s important to keep up with any new laws about retirement savings so you can make the best choices.
Jobs for Older Workers
“I might want to work part-time after I retire,” Jane shared. “The new president’s policies could affect job opportunities for older people.”
Like many retirees, Jane may want to keep working part-time. She’s worried about the incoming president’s stance on work and how it might affect her down the line.
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