Many Americans are worried about their retirement savings because of tariffs and market volatility. A recent survey from NerdWallet found that 34 percent of U.S. adults are concerned that tariffs could negatively impact investments in their retirement accounts. Financial experts are not surprised by this apprehension.
“It is not at all surprising that 34 percent of Americans are concerned about their retirement, as we have seen an incredible amount of volatility in the past two months,” said Drew Powers, founder of Powers Financial Group in Illinois. “At one point, the S&P 500 was down nearly 20 percent in just six weeks—that’s a lot for the everyday investor to grapple with.”
Kevin Thompson, CEO of 9i Capital Group, noted the twofold impact on retirement accounts: “Account values have suffered, and higher prices at the grocery store and beyond are adding external pressure through inflation.
According to Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, the potential hazards of tariffs for the economy are hard to ignore. Simply put, we’re in largely uncharted waters.
Tariffs’ toll on retirement planning
It’s been over a century since the United States had an extensive tariff plan, and our stock market and its attachment to millions of retirement accounts were vastly different, if not non-existent, back then.”
Despite the concerns, financial planners advise Americans to take a longer view and avoid overreacting to short-term headlines. “Long term, this will likely just be a blip,” Thompson said.
“The American economy is bigger than one man or one administration, at least for now.”
Americans are already recalibrating their financial strategies
However, many Americans are already recalibrating their financial strategies in response to the uncertainty. The months ahead could prove decisive for those approaching retirement. We’ve already seen stocks rocked by the immediate implementation of the tariffs. However, we still have not seen the actual numbers behind the impact, which will emerge in company earnings in the coming months,” Beene stated.
Sadly, this percentage of Americans concerned could be the floor if tariffs hurt earnings and trigger further stock declines.
As the economic landscape shifts, Americans nearing retirement must remain vigilant and adaptable in their financial planning to ensure a secure future.
Image Credits: Photo by Markus Winkler on Pexels
