Concerns about retirement are rising as older adults face challenges from tariffs and stock market downturns. For instance, Vicky Knight, a retired teacher and part-time yoga instructor from Marietta, Georgia, shared her worry about her financial situation. She finds her Social Security benefits insufficient, especially as the market has been hit by uncertainties linked to tariffs.
The market has dropped nearly 10% from its peak, signaling potential recession concerns. If you’re nearing retirement, you might be anxious about how to grow your savings without depleting them in this challenging environment.
But don’t lose hope—there are strategies to navigate a tough financial landscape. Here are some helpful tips from experts:
Maximize Your Tax Savings
If cash isn’t an issue, leverage your taxable accounts effectively, including 401(k)s, IRAs, and HSAs. The contribution limit for a 401(k) has increased to $23,500 in 2025, and if you’re closer to retirement, consider maximizing these contributions. For those over 50, there are additional “catch-up contributions” that raise the annual limit to $31,000. Moreover, individuals aged 60 to 63 can save up to $34,750 under specific provisions.
Maria Bruno, a senior financial planner, emphasizes that many may overlook the importance of these catch-up options. For IRAs, the limits are $7,000 or $8,000 for those over 50. While it may seem like there’s little opportunity to bolster savings as you near retirement, remember that these accounts can continue to grow even after you retire. Think of your savings as investments that need attention throughout your retirement.
Automate Your Contributions
During market dips, automating your retirement contributions is a smart move, allowing you to buy stocks at reduced prices. Michelle Crum, a financial planner, advises to stay consistent and remove emotions from investment decisions, as failing to automate can mean missing out on valuable opportunities.
Consider Delaying Retirement
If retirement looms on the horizon, you might not want to think about working more. However, delaying retirement even by a few months can significantly enhance your savings, equivalent to increasing your 401(k) contributions for decades. Just one extra year of work can add substantial funds to your retirement accounts, allowing for longer sustainability of your savings. Furthermore, working longer means you can avoid tapping into your savings while their values may still fluctuate.
That said, it’s crucial to balance work and enjoyment in later years. Part-time options could allow you to ease into retirement while still preserving your savings.
Build Cash Savings
As retirement nears, having cash on hand becomes more critical. Experts recommend that you should aim to have at least a year’s worth of essential living expenses saved in cash or cash-equivalent resources. This way, when expenses arise, you won’t need to sell investments at inopportune times.
Transition from Spending to Saving
Shifting your mindset from spending to saving can leverage extra cash in your retirement funds. Begin distinguishing between essential and non-essential expenditures—consider reallocating funds from non-essentials to enhance your retirement savings. Look into simple adjustments like refinancing loans, downsizing subscriptions, or eliminating high-interest debts to ease your financial strain as you approach retirement.
Delay Social Security Claims
Another strategy to bolster financial stability is to postpone claiming Social Security benefits. Delaying your claims can significantly increase your monthly benefits, providing a safety net in case of future market downturns. Crum highlights that waiting could be a form of financial insurance, granting greater income security during periods of portfolio stagnation.
