Americans approaching retirement and recent retirees are feeling anxious and frustrated after a second day of stock market turmoil, which has significantly reduced their 401(k) balances following President Donald Trump’s latest tariff escalation.
As the impending tariffs rattled the global economy on Friday, many retirees who had planned to rely on their retirement savings found themselves facing unexpected financial uncertainty. Some have put major purchases on hold and reconsidered home renovations, while others worry that the economic instability will impact their quality of life.
“I’m just stunned,” said Paula, 68, a retired occupational health professional from New Jersey. “With so much money in the market, we just have to hope there’s enough time to recover.”
Paula, who requested anonymity due to concerns about speaking out against Trump administration policies, expressed deep uncertainty about the future.
“We’ve been trying to enjoy the time we have, but you want to make it last,” she said. “I have no confidence right now.”
Stock Market Plunge and Retirement Concerns
Trump followed through on a key campaign promise this week by imposing sweeping tariffs, including on the United States’ largest trading partners. The move has raised fears of a global trade war and sent financial markets into turmoil. On Friday, the S&P 500 dropped 6%, the Nasdaq fell 5.8%, and the Dow Jones Industrial Average tumbled over 2,200 points, or about 5.5%.
Millions of Americans with 401(k) accounts watched their retirement savings shrink in real time.
“I checked my 401(k) this morning, and over the last two days, I’ve lost $58,000,” said Victor Fettes, 54, a Georgia resident who retired last week as a senior director of risk management at Verizon. “If this continues, I can’t stay retired.”
Trump Defends Tariffs Amid Economic Fallout
Trump has insisted that the tariffs will encourage businesses to relocate manufacturing and production back to the U.S., creating more jobs. However, many investors and business leaders argue that the tariffs will lead to higher prices for American consumers.
“Our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike,” Trump said recently. “But it is not going to happen anymore.”
While acknowledging the potential financial strain on Americans, Trump remains unwavering in his stance.
“MY POLICIES WILL NEVER CHANGE,” he posted on social media Friday. Later, he added, “ONLY THE WEAK WILL FAIL.”
The newly imposed tariffs are the most extensive in modern U.S. history, potentially even surpassing the infamous Smoot-Hawley tariffs of 1930, which economists believe worsened the Great Depression.
Retirement Savings and Economic Uncertainty
For many older Americans, the financial volatility has created deep concern.
“I don’t want to constantly worry about my financial reality being changed,” said Alison Carey, 64, a freelance theater professional from Oregon. “Let the economy do its thing, but don’t put me in the gears.”
Paula and her husband have already made adjustments, cutting back on major expenses and delaying big purchases, including vacations and home improvements.
“We can’t change anything except our spending,” she said. “I’m sure there are consumers across the board thinking the same way. Then it becomes a vicious cycle—consumer confidence goes down.”
According to an AARP survey published last April, one in five Americans over 50 has no retirement savings, while 61% worry they won’t have enough money to support themselves through retirement.
Calls for Action as Political Fallout Grows
Many retirees feel that their financial security is being jeopardized by government policies.
“It makes you realize how out of touch the administration is with regular people,” said Benajah Cobb, 63, Carey’s husband and a fellow theater professional.
Cobb hopes the recent stock market turbulence will push lawmakers to introduce more checks and balances on the president’s authority.
“It’s happening so quickly. Things are falling apart so fast,” he said. “I hope Congress—especially Republicans—step up.”
Fettes, the recent retiree, has been actively contacting his representatives to voice his concerns about the tariffs and their impact on retirement savings.
“We firmly believe that democracy is a participatory system,” he said. “We want to make sure our representatives understand our concerns.”
For Paula, the uncertainty surrounding her retirement funds remains the most pressing issue.
“That’s my biggest fear,” she said. “How soon will we run out of money?”
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