"Policy uncertainty is not merely about potential changes but the unpredictability of future policies, which can depress economic activity and increase stock market volatility."
"Majorities of respondents reported concerns regarding Social Security's financial pressures, the cost of Medicare, the federal debt, and tariffs, indicating widespread anxiety about fiscal stability."
"Households' attempts to hedge against risks, such as cuts in Social Security benefits, can backfire, leading to unintended financial consequences."
"The survey indicates that the risk posed by policy uncertainty to near-retirees and retirees is substantial, imposing considerable costs on households and harming the economy."
A survey of 1,443 individuals aged 45 to 79 revealed concerns about risks related to Social Security, Medicare, and fiscal policy. Policy uncertainty affects economic activity, increasing stock market volatility and unemployment while decreasing consumption and investment. By July 2025, significant changes in taxation, tariffs, federal debt, and Medicaid were noted. Many respondents expressed worries about Social Security and Medicare financing. As a result, 28% increased their emergency funds, indicating the substantial costs of policy uncertainty on households and the economy.
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