Americans nearing retirement and those who have recently retired expressed feelings of anxiety and frustration following the second day of market instability that impacted 401(k) plans after President Donald Trump’s increased tariffs.
As impending tariffs shook the global economy on Friday, individuals who had strategies for their retirement savings to endure their Golden Years voiced their concerns about the economic unrest affecting their personal lives.
Some individuals mentioned they were halting plans to buy major items and reconsidering home improvement projects, while others expressed fears that their lifestyle would suffer as a result of these ongoing disturbances.
“I’m somewhat shocked and I’m hoping there’s sufficient money in the market for a time to recuperate,”
Paula, who chose to remain unnamed due to fear of repercussions against her criticism of Trump’s policies, voiced her concerns about future developments.
“We are trying to make the most of the time we have left, but we want to ensure it’s not our last time,” Paula remarked on Friday. “My confidence is waning.”
This week, Trump acted on his campaign promise to implement sweeping tariffs, stirring fears that have escalated into a World Trade War with the US’s largest trading partner. This move sent the stock market into a downward spiral. By Friday afternoon, the broad S&P 500 index dipped by 6%, the tech-focused Nasdaq decreased by 5.8%, and the Dow Jones industrial average dropped by 2,200 points (a decline of over 5.5%).
Millions of Americans with 401(k) plans witnessed their retirement savings decrease alongside the stock market as Wall Street reacted negatively on Friday after China retaliated against US tariffs.
“I checked my 401(k) this morning and saw a loss of $58,000 in just two days. That’s quite stressful,” said Victor Fetz, 54, from Georgia, who retired just last week from his position as senior director of risk management and compliance at Verizon. “If this trend continues, my retirement plans may not be feasible.”
Trump believes that tariffs will compel companies to bring back manufacturing and production to the US, thus boosting employment. However, some investors and business organizations argue that it is likely to result in increased costs for American consumers.
“Our country has been exploited, pillaged, and robbed by both allies and adversaries,” Trump stated recently. “But that era is over.”
While the president acknowledges that some Americans will face financial strain, he remains resolute in defending his policy decisions.
“My policy will remain unchanged,” he stated on social media on Friday. He further declared, “Only the weak will be defeated.”
Trump’s tariffs are deeper and broader than anything seen in modern American history and could potentially surpass the tariffs implemented in the 1930s, which historians suggest worsened the Great Depression.
Some Americans contemplating retirement shared with NBC News that they feel their financial stability is under threat.
“No one should have to deal with the constant shifts in my financial circumstances,” noted Oregon’s Alison Carrey, 64, a freelance professional in the theatre sector. “Let the economy fluctuate, but don’t push me into crisis.”
Paula expressed that she and other older Americans are “somewhat anxious about the uncertain future.”
She and her spouse have made plans to cut back on high-cost purchases, reassessing their vacation and home renovation plans.
“The only thing that can change now is our spending,” she stated. “We believe it’s prudent for consumers to exercise caution overall. It’s a damaging cycle. Consumer confidence will suffer.”
One in five Americans aged 50 and over lack any retirement savings, and more than half, 61%, are worried they lack sufficient funds for their retirement. An AARP survey conducted last April revealed this alarming statistic.
“It shows how disconnected the current administration is from the average citizen,” said Benaja Cobb, 63, Carrie’s partner, who also works in the theatre industry.
He added that the recent stock market instability could compel lawmakers to impose more checks on the president’s decisions.
“Things are deteriorating so rapidly. Everything seems to unravel at lightning speed,” he stated. “I hope Congress will act to keep the Republican leadership in check.”
Fetz mentioned that he was reaching out to his representatives about tariffs and other relevant issues “to ensure our voices are being heard.”
“We strongly believe that democracy requires participation, so we want our representatives to be aware of our views and what actions they plan to take to represent us,” he added.
Paula shared that as she and her husband continue to keep an eye on their retirement accounts, their greatest concern revolves around how Trump’s policies might impact their quality of life moving forward and whether they would eventually face funding shortages.
“That’s a major worry for me. When will that shortfall happen?” she asked.
