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How abortion access can impact personal finance: Turnaway Study author

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Arizona residents rally for abortion rights on April 16, 2024 in Phoenix, Arizona.

Gina Ferazzi | Los Angeles Times | Getty Images

Abortion is an important issue for many voters, especially young women, heading into the November election.

Abortion access is about more than politics, or health care: It’s also a personal finance issue, said Diana Greene Foster, a demographer who studies the effects of unwanted pregnancies on people’s lives.

Foster, a professor at the University of California San Francisco, led The Turnaway Study, a landmark research study on the socioeconomic outcomes for Americans who are “turned away” from abortion. The study tracked 1,000 women over a five-year period ending January 2016. The women in the study had all sought abortions at some point before the study commenced; not all received one.

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In November, voters in 10 states — Arizona, Colorado, Florida, Maryland, Missouri, Montana, Nebraska, Nevada, New York and South Dakota — will choose whether to adopt state ballot measures about abortion access.

Such ballot measures follow a U.S. Supreme Court decision in 2022 that struck down Roe v. Wade, the ruling that had established a constitutional right to abortion five decades earlier.

Nationally, women under age 30 rank abortion as the most important issue to their vote on Election Day, according to the KFF Survey of Women Voters, which polled 649 women from Sept. 12 to Oct. 1. It ranked as the third-most-important issue among women voters of all ages, behind inflation and threats to democracy, according to the KFF poll.

Vice President Harris and Former President Trump spar over abortion

Abortion is among the least-important issues for registered Republicans, according to a Pew Research Center poll of 9,720 U.S. adults conducted Aug. 26 to Sept. 2.

CNBC spoke to Foster about the economics of abortion access and the financial impacts of the end of Roe v. Wade.

The conversation has been edited and condensed for clarity.

Low earners most likely to seek an abortion

Greg Iacurci: Can you describe the population of women that typically seek abortions in the U.S.?

Diana Greene Foster: One good thing about The Turnaway Study is that our demographics closely resemble national demographics on who gets abortions.

More than half are already parenting a child. More than half are in their 20s. A small minority are teenagers, even though lots of people think teenagers are the main recipients.

It’s predominantly people who are low-income. That’s been increasingly the case over time. It’s become disproportionately concentrated among people with the least economic resources.

GI: Why is that?

DGF: I think wealthier people have better access to contraceptives, even after the Obamacare-mandated coverage. Not everyone benefits from that. Not all states participate in that.

[Medical providers] still give contraceptives out. There are 20 states that have laws that say you should be able to get a year’s supply at a time, but almost nowhere is that actually available. The law says you should be able to get it, but you don’t. I led the studies that showed that if you make people go back for resupply every month or three months, as is very commonly done, you’re much more likely to have an unintended pregnancy. The laws have changed, but practice hasn’t changed. Access is not perfect yet.

Also, some people have abortions who have intended pregnancies because something went wrong with their health, with the fetus’ health, with their life circumstances. So even contraceptives aren’t the ultimate solution.

Greater likelihood of poverty and evictions

GI: What are the economic findings of your research?

DGF: When we follow people over time, we see that people who are denied an abortion are more likely to say that their household income is below the federal poverty line. They’re more likely to say that they don’t have enough money to meet basic living needs like food, housing and transportation.

Diana Greene Foster

Courtesy: Diana Greene Foster

Wanting to provide for the kids you already have is a common reason for abortion. We see that the existing children are more likely to be in poverty and in households where there aren’t enough resources if their mom couldn’t get an abortion.

[They’re also] more likely to have evictions, have a larger amount of debt if they’re denied an abortion.

GI: Can we quantify those impacts?

DGF: For example, six months after seeking an abortion, 61% of those denied an abortion were below the poverty line compared to just under half — 45% — of those who received an abortion. The higher odds of being below the [federal poverty line] persisted through four years.

And based on credit reports, we find that women denied abortions experienced significant increases in the amount of debt 30 days or more past due of $1,749.70, a 78% increase relative to their pre-pregnancy [average]. The number of public records, such as bankruptcies, evictions and court judgements, significantly increased for those denied abortions, by 81%.

GI: Why does this happen?

DGF: Having a kid is a massive investment. Deciding to parent a child relies on an amount of social support and housing security and access to health care, and our country isn’t at all set up to provide those things for low-income people.

Why costs are both rising and falling for women

GI: Your study took place at a time when Roe v. Wade was still the law. That’s no longer the case. How do you expect these economic consequences might be impacted?

DGF: In The Turnaway Study, people were denied abortions because they were too far along in pregnancy, but now you can be denied an abortion at any point in pregnancy in something like 13 states. So, it potentially affects a much larger group of people.

But there have been other changes which have to do with resources to help people travel and information about how to order medication abortion pills online. So, it isn’t the case that everyone who wants an abortion is now carrying a pregnancy to term.

There has been a lot of effort to circumvent state laws, and I think The Turnaway Study really reveals why. People understand their circumstances, and they are very motivated to get care, even when their state tries to ban it.

GI: What are the financial impacts some women in those states might encounter?

DGF: I’m actually studying the economic costs of the end of Roe and travel [expense]. Costs went up by $200 for people traveling out of state. People were delayed more than a week.

Under Roe, people could drive to an abortion clinic or get a ride; [after,] they were much more likely to be flying, having to take more modes of transportation. Over half stayed overnight. They traveled an average of 10 hours. That means taking time off work too. So, it dramatically increased the cost for those who traveled to get an abortion.

There are people who ordered pills online who are not [included] in the study. For those people, the cost may have gone down because it’s possible to order pills online for less than $30.

But you have to know about it, and you have to have an address, and you have to have internet, and it takes a level of knowledge to be able to pull that off. There can be a need for follow up medical care, so you have to be able to get that.

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What student loan forgiveness opportunities still remain under Trump

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Under the Biden administration, the U.S. Department of Education made regular announcements that it was forgiving student debt for thousands of people under various relief programs and repayment plans.

That’s changed under President Donald Trump.

In his first few months in office, Trump — who has long been critical of education debt cancellation — signed an executive order aimed at limiting eligibility for the popular Public Service Loan Forgiveness program, and his Education Department revised some student loan repayment plans to no longer conclude in debt erasure.

“You have the administration trying to limit PSLF credits, and clear attacks on the income-based repayment with forgiveness options,” said Malissa Giles, a consumer bankruptcy attorney in Virginia.

The White House did not respond to CNBC’s request for comment.

Here’s what to know about the current status of federal student loan forgiveness opportunities.

Forgiveness chances narrow on repayment plans

The Biden administration’s new student loan repayment plan, Saving on a Valuable Education, or SAVE, isn’t expected to survive under Trump, experts say. A U.S. appeals court already blocked the plan in February after a GOP-led challenge to the program.

SAVE came with two key provisions that lawsuits targeted: It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.

“I personally think you will see SAVE dismantled through the courts or the administration,” Giles said.

But the Education Department under Trump is now arguing that the ruling by the 8th U.S. Circuit Court of Appeals required it to end the loan forgiveness under repayment plans beyond SAVE. As a result, the Pay As You Earn and Income-Contingent Repayment options no longer wipe debt away after a certain number of years.

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There’s some good news: At least one repayment plan still leads to debt erasure, said higher education expert Mark Kantrowitz. That plan is called Income-Based Repayment.

If a borrower enrolled in ICR or PAYE eventually switches to IBR, their previous payments made under the other plans will count toward loan forgiveness under IBR, as long as they meet the IBR’s other requirements, Kantrowitz said. (Some borrowers may opt to take that strategy if they have a lower monthly bill under ICR or PAYE than they would on IBR.)

Public Service Loan Forgiveness remains

Despite Trump‘s executive order in March aimed at limiting eligibility for Public Service Loan Forgiveness, the program remains intact. Any changes to the program would likely take months or longer to materialize, and may even need congressional approval, experts say.

PSLF, which President George W. Bush signed into law in 2007, allows many not-for-profit and government employees to have their federal student loans canceled after 10 years of payments.

What’s more, any changes to PSLF can’t be retroactive, consumer advocates say. That means that if you are currently working for or previously worked for an organization that the Trump administration later excludes from the program, you’ll still get credit for that time — at least up until when the changes go into effect.

For now, the language in the president’s executive order was fairly vague. As a result, it remains unclear exactly which organizations will no longer be considered a qualifying employer under PSLF, experts said.

However, in his first few months in office, Trump has targeted immigrants, transgender and nonbinary people and those who work to increase diversity across the private and public sector. Many nonprofits work in these spaces, providing legal support or doing advocacy and education work.

For now, those pursuing PSLF should print out a copy of their payment history on StudentAid.gov or request one from their loan servicer. They should keep a record of the number of qualifying payments they’ve made so far, said Jessica Thompson, senior vice president of The Institute for College Access & Success.

“We urge borrowers to save all documentation of their payments, payment counts, and employer certifications to ensure they have any information that might be useful in the future,” Thompson said.

Other loan cancellation opportunities to consider

Federal student loan borrowers also remain entitled to a number of other student loan forgiveness opportunities.

The Teacher Loan Forgiveness program offers up to $17,500 in loan cancellation to those who’ve worked full time for “complete and consecutive academic years in a low-income school or educational service agency,” among other requirements, according to the Education Department.

(One thing to note: This program can’t be combined with PSLF, and so borrowers should decide which avenue makes the most sense for them.)

Student loan matching funds

In less common circumstances, you may be eligible for a full discharge of your federal student loans under Borrower Defense if your school closed while you were enrolled or if you were misled by your school or didn’t receive a quality education.

Borrowers may qualify for a Total and Permanent Disability discharge if they suffer from a mental or physical disability that is severe and permanent and prevents them from working. Proof of the disability can come from a doctor, the Social Security Administration or the Department of Veterans Affairs.

With the federal government rolling back student loan forgiveness measures, experts also recommend that borrowers explore the many state-level relief programs available. The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.

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Many Americans are worried about running out of money in retirement

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Many Americans are worried they’ll run out of money in retirement.

In fact, a new survey from Allianz Life finds that 64% Americans worry more about running out of money than they do about dying. Among the reasons cited for those fears include high inflation, Social Security benefits not providing enough support and high taxes.

The fear of running out of money was most prominent for Gen Xers who are approaching retirement. However, a majority of millennials and baby boomers also said they worry about their money lasting, according to the online survey of 1,000 individuals conducted between January and February.

Separately, a new Employee Benefit Research Institute report finds most retirees say they are living the lifestyle they envisioned and are able to spend money within reason. Yet more than half of those surveyed agreed at least somewhat that they spend less because of worries they will run out of money, according to the survey of more than 2,700 individuals conducted between January and February.

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Meanwhile, a Northwestern Mutual survey reported that 51% of Americans think it’s “somewhat or very likely” they will outlive their savings. The survey polled 4,626 U.S. adults aged 18 and older in January.

Since those studies were conducted, new tariff policies have caused disturbance in the stock markets and prompted speculation that inflation may increase. Meanwhile, new leadership at the Social Security Administration has prompted fears about the continuity of benefits. Those headlines may negatively affect retirement confidence, experts say.

With employers now providing a 401(k) plan and other savings plans versus pensions, it is largely up to workers to manage how much they save heading into retirement and how much they spend once they reach that life stage. That responsibility can also lead to worries of running out of money in the future, experts say.

How to manage the ‘fear of outliving your resources’

Because of the unique risks every individual or couple faces when planning for retirement, the best approach is typically to transfer some of that burden to a third party, said David Blanchett, head of retirement research at PGIM DC Solutions.

Creating a guaranteed lifetime income stream that covers essential expenses can help reduce the financial impact of any events that require retirees to cut back on spending, Blanchett explained.

That should first start with delaying Social Security benefits, he said. While eligible retirees can claim benefits as early as 62, holding off up until age 70 can provide the biggest monthly benefits. Social Security is also unique in that it provides annual adjustments for inflation.

73% of Americans are financially stressed

Next, retirees may want to consider buying a lifetime income annuity that can help amplify the monthly income they can expect. Admittedly, those products can be complicated to understand. Therefore Blanchett recommends starting out by comparing very basic products like single premium immediate annuities that are easier to compare.

“Unless you do those things, you just can’t get rid of that fear of outliving your resources,” Blanchett said.

Without a guaranteed income stream, retirees bear all of the financial risk themselves, he said.

 “Retirement could last 10 years; it could last 40 years,” Blanchett said. “You just don’t know how long it’s going to be.”

Among retirees, there has been some hesitation to buy annuities, said Craig Copeland, EBRI’s director of wealth benefits research. Such a purchase requires parting with a lump sum of money in exchange for the promise of a guaranteed income stream.

“We see great increase in interest, but we aren’t seeing upticks in take up yet,” Copeland said. “I do think that’s going to start to change.”

What can help boost retirement confidence

To effectively plan for retirement, it helps to seek professional financial assistance, experts say.

Meanwhile, few people have a plan of their own for how they may live on the assets they’ve worked hard to accumulate, according to Kelly LaVigne, vice president of consumer insights at Allianz Life.

“This is something that you should not plan on doing on your own,” LaVigne said.

While the survey from Northwestern Mutual separately found individuals think they need $1.26 million to retire comfortably, the real number individuals need is based on their personal situation, said Kyle Menke, founder and wealth management advisor at Menke Financial, a Northwestern Mutual company.

In thinking about how life will look in 30 years, there are a variety of things to consider, Menke said. This includes stock market returns, taxes, inflation and medical expenses, he said.

Even people who have enough money for retirement often don’t feel confident in their ability to manage all of those factors on their own, he said. Financial advisors have the ability to run different simulations and stress test a plan, which can help give retirees and aspiring retirees the confidence they’re lacking.

“I think that’s where the biggest gap is,” said Menke, referring to the confidence Americans are lacking without a plan.

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Trump tariffs will hurt lower income Americans more than the rich: study

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Shipping containers at the Port of Seattle on April 16, 2025.

David Ryder/Bloomberg via Getty Images

Tariffs levied by President Donald Trump during his second term would hurt the poorest U.S. households more than the richest over the short term, according to a new analysis.

Tariffs are a tax that importers pay on foreign goods. Economists expect consumers to shoulder at least some of that tax burden in the form of higher prices, depending on how businesses pass along the costs.

In 2026, taxes for the poorest 20% of households would rise about four times more than those in the top 1%, if the current tariff policies were to stay in place. Those were findings according to an analysis published Wednesday by the Institute on Taxation and Economic Policy.

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For the bottom 20% of households — who will have incomes of less than $29,000 in 2026 — the tariffs will impose a tax increase equal to 6.2% of their income that year, on average, according to ITEP’s analysis.

Meanwhile, those in the top 1%, with an income of more than $915,000 a year, would see their taxes rise 1.7% relative to their income, on average, ITEP found.

Economists analyze the financial impact of policy relative to household income because it illustrates how their disposable income — and quality of life — are impacted.

Taxes by ‘another name’

“Tariffs are just taxes on Americans by another name,” researchers at the Heritage Foundation, a conservative think tank, wrote in 2017, during Trump’s first term.

“[They] raise the price of food and clothing, which make up a larger share of a low-income household’s budget,” they wrote, adding: “In fact, cutting tariffs could be the biggest tax cut low-income families will ever see.”

Meanwhile, there’s already evidence that some retailers are raising costs.

A recent analysis by the Yale Budget Lab also found that Trump tariffs are a “regressive” policy, meaning they hurt those at the bottom more than the top.  

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The short-term tax burden of tariffs is about 2.5 times greater for those at the bottom, the Yale analysis found. It examined tariffs and retaliatory trade measures through April 15.

“Lower income consumers are going to get pinched more by tariffs,” said Ernie Tedeschi, director of economics at the Yale Budget Lab and former chief economist at the White House Council of Economic Advisers during the Biden administration.

Treasury Secretary Scott Bessent has said tariffs may lead to a “one-time price adjustment” for consumers. But he also coupled trade policy as part of a broader White House economic agenda that includes a forthcoming legislative package of tax cuts.

“We’re also working on the tax bill and for working Americans, I believe that the reduction in taxes is going to be substantially more,” Bessent said April 2.

It’s also unclear how current tariff policy might change. The White House has signaled trade deals with certain nations and exemptions for certain products may be in the offing.

Trump has imposed a 10% tariff on imports from most U.S. trading partners. Mexico and Canada face 25% levies on a tranche of goods, and many Chinese goods face import duties of 145%. Specific products also face tariffs, like a 25% duty on aluminum, steel and automobiles.

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