Many Investors Are Anxious About the Midterms -- Should You Change Your 401(k)?
The November 3 midterm elections are stirring anxiety among investors as many move money out of their retirement accounts for fear of a major loss.
According to an October 2026 survey by the Nationwide Institute of Retirement, 56% of investors feel anxious about the midterm elections, and 75% believe the outcome will significantly affect their finances.
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Forty percent of investors have already moved money out of their retirement accounts ahead of the vote, while 15% have moved funds into low-risk investments and 13% have diversified their portfolios. Meanwhile, 14% of participants said they made no changes, according to the survey.
Should you make changes to your 401(k) ahead of the midterms? Financial advisors say no.
Don't Let Election Anxiety Drive Your 401(k) Decisions
Investor anxiety stems from an uncertain economy driven by rising interest rates and inflation, said Mark Hackett, chief market strategist at Nationwide's Investment Management Group, as cited by the National Association of Plan Advisors (NAPA).
This is prompting some concerned investors to adjust their portfolios and seek strategies they think will perform better in an uncertain market, added Hackett.
Historically, election results may increase market volatility, however, they generally have little effect on long-term investment performance, regardless of which political party wins or loses power.
A 401(k) that has grown over several decades, through multiple election cycles and changes in political leadership, is a good example of this.
Christopher Stroup, founder and president of Silicon Beach Financial, advises against changing your 401(k) investment strategy based on the outcome of midterm elections.
He said retirement investing is a long-term strategy, and reacting to political uncertainty can do more harm than good.
“Instead, focus on maintaining an appropriate asset allocation, contributing consistently, and periodically rebalancing your portfolio to ensure it remains aligned with your financial goals and risk tolerance, said Stroup.
Consider Your Retirement Timeline
If you’re not planning to retire for decades, you have more time to recover from market losses. However, if retirement is around the corner, you may want to choose less risky investments based on your retirement timeline and risk tolerance, according to the Securities and Exchange Commission (SEC).
Diversify Your 401(k) To Minimize Risk
Do you know where your 401(k) money is invested? A financial advisor can help you diversify your 401(k). The SEC recommended spreading your money across stocks, bonds and other investments to reduce risk.
Rebalance Your 401(k) After Market Shifts
Rebalancing your 401(k) can restore your preferred investment mix to align with your retirement goals after market gains and losses shift your portfolio. For example, a portfolio with 60% invested in stocks could grow to 80% in stocks after market gains, according to the SEC.
Editor’s note on political coverage: MoneyLion is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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