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Market Turmoil Leaves Retirees Anxious About Savings
As financial markets experience turmoil, many Americans approaching or in retirement are increasingly worried about their savings. Michael Montgomery, a 66-year-old professor from Michigan, used to check his retirement account weekly with a sense of satisfaction. Now, to avoid the stress, he’s stopped looking altogether.
“I’m not looking,” Montgomery says. “It’s just too unsettling.”
The market’s volatility is largely driven by uncertainty surrounding trade policies and fears of an economic downturn. With the White House’s actions escalating market concerns, retirees and those nearing retirement are anxious about the stability of their finances. Many are afraid they could outlive their savings or have to postpone their retirement dreams.
Like Montgomery, 71-year-old Jeanne Oats Estridge called her financial planner in a panic, asking if she should convert her investments to cash. The advisor didn’t recommend it, but Estridge, like many, remains unsettled.
This uncertainty isn’t limited to individual stories. The S&P 500 recently fell 10% from its peak earlier this year, with even bonds and the U.S. dollar showing volatility. Economists warn that a recession may be on the horizon, further fueling investor fear.
While President Trump has downplayed the impact of tariffs on investments, many older Americans disagree. For 72-year-old Peter Rost, a retired software developer, market losses are personal. He had hoped to withdraw a small sum from his retirement savings but is now hesitant to do so, fearing further losses.
“I don’t want to pull out $2,000 only to watch my account drop by $30,000,” Rost says. He, like many retirees, doesn’t have the luxury of time to wait for the market to rebound.
Despite the uncertainty, many Americans still have a significant portion of their savings in stocks. Vanguard, a major fund manager, reports that people aged 65 and older still hold about 49% of their portfolios in equities. This exposure to the volatile market has led many to seek advice from financial planners, especially in light of the recent turmoil.
Retirees like Paul Duesterhaus, 68, are opting to hold off on withdrawals and adjust their lifestyles instead. Duesterhaus plans to delay buying a new car and reduce discretionary spending, though he remains concerned about the long-term impacts of the trade war.
For older Americans, retirement savings are a significant source of stress. A recent poll found that nearly half of U.S. adults aged 45 and older cited their retirement savings as a “major” stressor, a much higher percentage than younger Americans.
With market volatility continuing, it seems that for many retirees, the fear of financial insecurity is only growing.