2026 Midterm Elections and Your Money: What Matters

October 2026 | Estimated reading time: 5 minutes

Lately, I've noticed something in conversations with friends, family, and clients. People aren't necessarily talking about politics.

They're talking about their latest Costco run.

The cost of filling up the car. The electricity bill that keeps climbing. Whether their children will be able to afford a home. Whether the retirement they've worked toward will still look the way they imagined.

And sometimes, they're wondering why they're working so hard, yet their money doesn't seem to stretch quite as far.

These conversations stay with me.

Because behind every economic headline is a family trying to make thoughtful decisions about their future.

As we approach November 3, 2026, midterm elections, inflation, affordability, jobs, and healthcare are dominating the national conversation.

But there's another question worth asking:

What does all of this mean for your money, and what should you be paying attention to?

At Sun Group Wealth Partners, we're looking beyond the political headlines at seven financial issues that may matter long after Election Day.

1. When Earning More Doesn't Feel Like Having More

There's something frustrating about earning more money but feeling like you have less.

A Costco run that used to cost $200 now seems to cost considerably more. Family vacations require larger budgets. Even small purchases don't feel so small anymore.

According to the Bureau of Labor Statistics, consumer prices rose 3.4% over the 12 months ending in August 2026.

Some categories experienced even larger increases:

• Gasoline: +27.4%

• Energy: +16.3%

• Food: +2.7%

• Shelter: +3.0%

A July Washington Post/Ipsos poll found that 59% of Americans didn't believe families like theirs had a good chance of improving their standard of living.

That's a difficult feeling, especially for people who've spent years working, saving, and making responsible financial decisions.

What this means for your financial plan:

Inflation doesn't just affect today's spending. It also influences how much you may need for retirement, healthcare, and other long-term goals.

At an illustrative 3% annual inflation rate, something costing $100,000 today would cost approximately $134,000 in ten years.

For families approaching retirement, revisiting spending assumptions may be just as important as reviewing investment performance.

It's not only about how much you've saved. It's about what those savings may buy in the future.

2. Everyday Expenses Are Changing How Families Save

One statistic caught my attention.

According to recent polling, 65% of Americans say groceries are unaffordable.

Even among households earning more than $100,000 annually, 56% expressed the same concern.

That tells us financial pressure isn't necessarily limited to lower-income households.

Between housing, childcare, college tuition, insurance, and caring for aging parents, even families with substantial incomes may feel stretched.

And when everyday expenses rise, something else often happens. Long-term goals quietly get pushed aside.

Money that might have gone toward retirement contributions or college savings may instead be needed for current expenses.

What we're thinking about:

• This may be a useful time to revisit household cash flow.

• Not necessarily to make dramatic cuts, but to understand whether spending still reflects your priorities.

For some families, that means reviewing recurring expenses.

For others, it might mean adjusting savings contributions or reconsidering the timing of a major purchase.

The goal isn't simply to spend less.

It's to make thoughtful choices about what matters most.

3. Interest Rates and Debt: The Hidden Cost of Borrowing

Homeownership has long been an important financial milestone.

But getting there has become more complicated.

In early October, the average 30-year mortgage rate was approximately 7.28%, while 64% of Americans surveyed expressed significant concern about housing costs.

Higher rates affect more than homebuyers. They influence refinancing decisions, home equity borrowing, and the cost of carrying debt.

According to Federal Reserve data, the average commercial-bank credit card interest rate reached 21.19% in August 2026.

Meanwhile, U.S. household debt totaled approximately $18.77 trillion in the second quarter, including more than $1.26 trillion in credit card balances.

For families carrying balances, higher interest payments can leave less money available for other priorities.

What this means for your financial plan:

It may be worth reviewing outstanding debt, interest rates, and how monthly payments fit into your broader financial picture.

For homeowners with lower fixed mortgage rates, moving or refinancing may require a different calculation than it did a few years ago.

Sometimes, the question isn't whether you can afford something today.

It's what that decision may mean for tomorrow.

4. The Job Market: Why Stability Feels Different Right Now

Economists have described today's labor market as a "low-hire, low-fire" environment.

In September 2026, the economy added approximately 29,000 jobs, while unemployment stood at 4.2%.

Layoffs remain relatively contained, but hiring has slowed.

For someone with a steady job, that may not sound concerning.

Until they consider changing careers, negotiating a raise, or helping a recent college graduate find work.

A slower hiring environment can influence financial decisions even when unemployment remains relatively low.

Three to six months of essential expenses is a common starting point, though some households may want more depending on income stability, family responsibilities, and financial obligations.

Maintaining cash reserves involves trade-offs, including inflation and potential investment returns.

The appropriate amount depends on your circumstances.

But understanding how long your household could manage without income is a worthwhile financial planning exercise.

5. Social Security and Medicare: Important Retirement Questions

For those approaching retirement, one of the biggest financial questions may have little to do with the stock market.

It has to do with future income.

According to the 2026 Social Security Trustees Report, the Old-Age and Survivors Insurance Trust Fund is projected to deplete its reserves in late 2032.

The combined Social Security trust funds are projected to deplete their reserves in 2034.

This doesn't mean Social Security benefits would disappear.

Under current-law projections, ongoing income would still cover approximately 83% of scheduled benefits for the combined program after reserve depletion.

Medicare faces similar funding pressures, with its Hospital Insurance Trust Fund projected to deplete reserves in 2033.

Congress may consider changes, but the timing and details remain uncertain.

What this means for retirement planning:

For someone hoping to retire within the next five to ten years, it may be worth examining different income scenarios.

How much retirement income might come from Social Security?

What happens if future benefits are lower than currently scheduled?

How might retirement account withdrawals, taxes, pensions, and healthcare expenses fit together?

We can't know exactly what Congress will do.

But we can explore different possibilities and consider how they may affect a retirement plan.

6. Taxes, Tariffs, and Healthcare: Why Washington Matters to Your Wallet

Elections aren't just about political parties.

They're also about policies that can affect everyday financial decisions.

Tax legislation may influence retirement contributions, estate planning, charitable giving, and investment income.

Healthcare policy can affect premiums and out-of-pocket expenses.

Trade policy may influence the prices consumers pay.

Research from the Federal Reserve Bank of New York suggests that approximately 90% of the 2025 tariff increase was passed through to U.S. import prices, contributing to higher costs for certain goods.

Healthcare remains another major concern.

Recent KFF polling found that 60% of voters were worried about being able to afford healthcare.

For retirees and families caring for older relatives, these expenses can be especially meaningful.

What we're watching:

The distinction between proposed policies and enacted legislation matters.

Campaign promises don't necessarily become law.

And even when policies change, their financial impact can vary considerably from household to household.

Rather than making major financial decisions based on election predictions, we believe it's useful to understand potential policy changes and evaluate how they may relate to your individual circumstances.

7. Should Investors Change Their Strategy Because of the Election?

This is a question that often comes up during election years.

Should I move money out of the market?

Should I wait until after November?

What happens if my preferred candidate doesn't win?

These are understandable concerns.

But markets respond to much more than election results.

Corporate earnings, inflation, interest rates, economic growth, and global events all influence investment performance.

Even when an election outcome seems likely, the market's response can be difficult to anticipate.

And short-term market movements don't necessarily tell us much about longer-term results.

Instead of trying to predict what happens next, consider three questions:

• Has my financial situation changed?

  • A new job, retirement date, inheritance, or family responsibility may matter more to your investment strategy than an election.

• Does my investment allocation still reflect my goals?

  • Your time horizon, liquidity needs, and risk tolerance should remain central considerations.

• Am I making decisions based on my long-term needs or short-term emotions?

  • Political uncertainty can make financial decisions feel more urgent than they actually are.

Diversification and thoughtful asset allocation may help manage certain risks, although neither eliminates the possibility of investment losses.

The goal isn't to predict every market movement.

It's to maintain an investment approach that reflects your financial circumstances and objectives.

Important Dates to Keep in Mind

These events may provide useful information, but they don't necessarily require immediate changes to your financial plan.

Sometimes, awareness is simply the beginning of a better conversation.

Beyond the Election: Your Financial Life Is What Matters Most

As a financial advisor, entrepreneur, and mother of three, I think about money from several perspectives.

I think about running a business when expenses keep rising and raising children in a world where college, housing, and everyday life cost more than they once did.

And I think about families who've spent decades working toward retirement, hoping to have more time for the people and experiences they love.

For many of us, money represents something deeper than an account balance.

It represents choices: helping our parents as they age, supporting our children as they find their way, having the flexibility to step away from work someday, and spending time with the people who matter most.

Perhaps that's why conversations about the economy feel so personal.

We're not just thinking about inflation statistics or market performance.

We're thinking about the lives we're trying to build.

The 2026 midterm elections will come and go.

Some policies may change. Others may remain.

Markets will continue responding to developments we can't always anticipate.

But the questions at the heart of thoughtful financial planning remain much the same.

Are we making decisions that reflect our priorities?

Are we preparing for the responsibilities ahead?

And are we leaving enough flexibility for the unexpected?

The election may influence the financial landscape. But it doesn't have to define your financial future.

At Sun Group Wealth Partners, we believe financial planning is an ongoing conversation, one that evolves as your life changes.

If recent economic developments have raised questions about your retirement, investments, taxes, or financial priorities, we'd welcome the opportunity to talk.

Because sometimes, the most important financial question isn't what's happening in Washington.

It's what's happening in your own life.

Sources:

• Bureau of Labor Statistics — Consumer Price Index

• Pew Research Center — Economic Issues and the 2026 Midterms

• Washington Post/Ipsos — July 2026 Poll

• KFF — Healthcare Costs and Voter Concerns

• Federal Reserve Bank of New York — Household Debt

• Social Security Administration — Trustees Reports

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Research based on the supplied October 2026 economic and midterm election briefing.

The information presented is for general educational purposes only and should not be considered individualized investment, tax, or legal advice. Economic data and projections are subject to change. Investing involves risk, including possible loss of principal. Diversification does not guarantee a profit or protect against loss. Consult appropriate financial, tax, and legal professionals regarding your individual circumstances.