Americans approaching retirement and recent retirements said they were uneasy and annoyed after the second day of market turmoil that hit the 401(k) after President Donald Trump’s tariff escalation.
When impending tariffs shook the global economy on Friday, those planning retirement accounts to carry them through the golden age said economic turmoil was getting too close to their homes.
Some said they were suspending the purchase of great scouts and reconsidering home renovations, while others said they fear that their quality of life will be negatively affected by all the disruptions.
“I’m a bit surprised and I hope there’s plenty of money in the market so I have plenty of time to recover.
Speaking on condition of anonymity for fear of retaliation for opposing Trump administration policies, Paula said she was worried about what’s going to happen.
“What we’ve done is enjoying the time we have, but you want to make it the last thing,” Paula said Friday. “I’m not confident here.”
Trump fulfilled his campaign promise this week to unleash tariffs that will be wiped out, including the US’s biggest trading partners, in a move that sparked the horrors of the World Trade War. This decision has caused the stock market to spin. On Friday afternoon, the Broad-based S&P 500 closed 6%, the tech-heavy Nasdaq fell by 5.8%, while the Dow Jones industrial average fell by 2,200 points (down over 5.5%).
Millions of 401(k) Americans saw retirement funds drop along with the stock market as Wall Street got caught up in Friday after China fought back on tariffs on the US.
“I saw 401(k) this morning and lost $58,000 over the last two days. That’s stressful,” said Georgia’s Victor Fetz, 54, who retired last week as senior director of risk management and compliance at Verizon. “If that continues, I won’t be able to continue retirement.”
Trump says tariffs will force businesses to return manufacturing and production to the US and revive work. Some investors and business groups have pushed back saying it is likely to lead to higher prices for US consumers.
“Our country has been plundered, plundered, raped and looted by both our friends and our enemies,” Trump recently said. “But that’s not going to happen anymore.”
The president acknowledges the potential pain that comes in some Americans’ wallets, but he continues to stubbornly defend his agenda.
“My policy will never change,” he posted on social media on Friday. He then wrote, “Only the weak will fail.”
Trump’s tariffs are more steep and widespread than modern American history. They could be even wider than the 1930 tariffs, which historians said had exacerbated the Great Repression.
Some Americans considering resignation told NBC News they feel financial security is in progress.
“No one needs to worry about constantly changing my financial reality,” said Alison Carrey, 64, of Oregon, a freelancer in the theatre industry. “Let the economy conspiracy. But don’t put me in gear.”
Paula said she and other older Americans are “a bit worried about something that doesn’t know what will happen.”
She and her husband decided to pause and reduce their spending on high items. They are rethinking their holidays and home renovations.
“Nothing can be changed now except for spending,” she said. “We are sure there are consumers on the whole that we want to be cautious. That’s a vicious cycle. Consumers’ trust will decline.”
One in five Americans over 50 have no retirement savings, and over half, 61%, worry that they don’t have enough money to help them quit, according to a survey published by AARP last April.
“It makes us understand how the current administration is in contact with ordinary people,” said Benaja Cobb, 63, Carrie’s husband, who also works in the theatre industry.
He said the stock market turmoil over the past few days would motivate lawmakers to balance the president with more checks.
“It’s happening so quickly. Things fall apart so quickly,” he said. “I hope Congress will try to raise the Republicans in Congress a little.”
Fetz said he was calling his representatives about tariffs and other issues “to make sure we are hearing as a member.”
“We firmly believe in our families that democracy is a participatory game, so we want to make sure our representatives understand where we are and what they want to do to represent,” he said.
Paula said that as she and her husband continue to monitor their retirement accounts, their biggest fear is how Trump’s policies will affect the quality of their lives for the rest of their lives, and when they run out of funds.
“That’s a big concern for me. When will that shortage occur?” she said.
Ben Trachtenberg of NBC News contributed.
Minority leader Chuck Schumer, D-NY, spoke from the Senate to blow up the widespread White House tariffs imposed on almost every country and territory in the world. “Donald Trump uses tariffs in the stupidest way possible,” Schumer said Friday. “In fact, Trump slapped the penguins tariffs, but not Putin.”
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