With the 2024 election just around the corner, North Carolina is once again finding itself in the political spotlight. And if you’re wondering how Vice President Kamala Harris’s policies might shake up your retirement plans, you’ve come to the right place.
GOBankingRates spoke to financial experts to figure out exactly what might happen after Nov. 5. Let’s break down how Harris might affect your retirement if you live in North Carolina.
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North Carolina: The Swing State Showdown
When it comes to elections, North Carolina is a big deal. As Cliff Ambrose, founder and wealth manager at Apex Wealth, put it, “North Carolina is a key swing state, so voters here will likely feel the effects of these policies more directly as both sides vie for support in the election.”
In other words, your vote in North Carolina carries some serious weight.
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Strengthening the Safety Net
One of Harris’s main focuses is on boosting social programs. According to Ambrose, “Harris is likely to focus on strengthening social safety nets like Social Security and Medicare, which could be a relief to retirees who depend on these programs.”
For many North Carolina retirees — especially those in the middle- and lower-income brackets — this could be welcome news. If you’re counting on these programs to help you out during retirement, Harris’s policies might help make that happen.
The ‘Opportunity Economy’
Anthony DeLuca from RetireGuide gave us a peek at Harris’s bigger picture for North Carolina. “Vice President [Harris] has used a term, ‘opportunity economy,’ which she spoke of in Raleigh, North Carolina. This idea focuses on housing costs and food prices.
“Her proposals aim to cap price increases on food companies that exceed a certain gross revenue, offer $25,000 in down payment assistance to on-time rent payers, offer tax incentives to home builders and reoffer tax credits for families with children.”
These policises could have a positive ripple effect for retirees. As DeLuca explained, “I would argue that her policy helps the North Carolinians in retirement by allowing people to actually begin their journey toward retirement without being bogged down by inflation.”
The Tax Question
While Harris is all about strengthening social programs, that money has to come from somewhere. Ambrose shared, “her policies might also include higher taxes for wealthier individuals to fund broader government programs.”
If you’re a higher-income retiree in North Carolina, it’s something to consider. However, these potential tax increases are typically for the wealthiest Americans — not your average retirees.
The Childcare Connection
Harris has also proposed capping childcare costs at 7% of household income. While this isn’t directly a retirement policy, it could indirectly benefit retirees who are helping with grandchildren, potentially freeing up more of their retirement income.
The Final Word
Harris’s plans could bring both opportunities and challenges for North Carolina retirees. If you rely on social programs like Social Security and Medicare, you could see some welcome improvements. But if you’re on the higher end of the income scale, you might need to prepare for potential tax changes.
“Regardless of your political views, it seems that her intentions are to give every individual an opportunity to live the American dream,” DeLuca said. “It’s very difficult to build a retirement portfolio when every earned dollar goes toward the cost of rent and food.’”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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