Eighty-seven percent of Americans with $500,000 or more in investable assets agree that the size of the U.S. government deficit is a major concern, a survey by research firm TNS found.
Forty percent said they would be willing to pay higher taxes if it meant no cuts to Social Security and Medicare. Forty percent also said they would be willing to accept changes to Social Security and Medicare.
Affluent Americans are also concerned that the fragile economy will impact their retirement, with 43% indicating that the current state of the economy will jeopardize their retirement plans. Forty percent said they intend to spend less this year than they did in 2010.
Fifty-six percent are afraid that the U.S. government may default on its debt obligations, yet 60% do not think the government should increase the federal debt ceiling.
The TNS Investor Confidence Index, which measured the outlook of 1,685 affluence individuals, also declined by 11 points to 102 in June, its lowest reading in a year.
“These findings reveal significant stress and discomfort among investors who control the overwhelming majority of the personal wealth in the U.S,” said TNS Senior Vice President Joe Hagan. “We expect investor confidence to decline further if a decision concerning the debt ceiling isn’t made ahead of the Aug. 2 deadline. On the other hand, a satisfactory resolution could raise investor confidence and spur a rise in the financial markets.”