According to a survey conducted by the CFP Board, American households across various income and wealth levels are expressing significant concerns about affordability, with 69% of clients becoming more worried about the issue over the past year. The survey, which gathered responses from 440 CFP professionals between July 9 and 27, found that these concerns span both long-term financial goals and immediate daily expenses.
Safety net programs dominate client anxieties, with 78% of CFP professionals indicating their clients worry about Social Security’s long-term sustainability and 73% reporting similar concerns about Medicare. Social Security, which serves more than 75 million Americans monthly, faces projected trust fund depletion in the coming decade that could trigger broad benefit reductions without legislative intervention. Medicare’s hospital insurance trust fund also confronts looming depletion that may necessitate changes to benefits or supporting taxes.
Beyond retirement programs, client concerns extend across multiple policy areas, including health care costs cited by 88% of advisors, retirement plans by 88%, taxes by 84%, and energy prices by 56%. The persistent affordability pressures have prompted some clients to make potentially problematic financial decisions, with 29% withdrawing from retirement accounts early, 20% reducing retirement contributions, and 18% accumulating high-interest debt.
In response, most CFP professionals—85% of those surveyed—are recommending strategies to preserve long-term financial objectives, including stress-testing plans for recession scenarios, establishing emergency savings funds, reassessing contribution rates, and accelerating debt payoff. While most advisors do not anticipate the November election having a substantial impact on client finances, approximately two-thirds expect to revise client plans over the next year, potentially driven by shifting affordability pressures.
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