Retirement Investments Fluctuating in Stock Market Under Trump

• Older Americans are facing tough choices amid market and economic uncertainty.
• The stock market’s decline and policy changes have heightened some fears of financial instability.
• Some retirees remain optimistic, while others fear policy impacts on their retirement income.

Many older Americans are at a crossroads: Should they brave the market and hope it bounces back, or rethink their retirement plans?

Business Insider spoke this week to nearly a dozen older Americans about how they view their retirement amid a wave of market and economic uncertainty. While some said they’re fearful inflation could tick up or their retirement funds may not recover, others are more optimistic and expect the market to rebound.

The S&P 500 fell over 10% from recent highs in mid-February and 6% year to date before ticking back up Friday, triggering recession anxiety on Wall Street and hitting many older Americans’ retirement investments. President Donald Trump’s shifting tariff policies and DOGE-led federal government cuts also mean some older Americans fear higher grocery or medical bills.

Many older adults BI spoke with said they feel financially comfortable and will not be significantly affected by federal policy changes. But others said they’re scared they will have trouble paying their bills or accessing government aid.

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Some retirees aren’t too worried about their finances

A few older Americans told BI they’re cautiously optimistic about their financial futures despite this rough patch in the market.

Karen Keane, 64, said that while she’s nervous about the long-term, she’s in a better financial position than many of her peers.

Keane worked in finance for a Fortune 100 company in South Florida and took a voluntary buyout a few years ago that included medical insurance, though she’s been unable to find another midlevel management job.

“My money is gone, and I have had to dip into my 401(k) to pay bills. I also lost my health insurance in 2023 and had to go on my husband’s,” Keane said, adding her retirement forecast from 2019 has come up short amid price increases.

Keane said she and her husband are preparing to sell their house and plan to move to West Virginia for lower living costs.

Keane advised taking a steady view of your retirement savings: “Don’t panic and stay diversified. Look at your savings as a supplement to Social Security. Figure out where, why, and how you want to spend your retirement.”

For some retirees with larger assets and higher income streams, the last few weeks haven’t caused much concern.

William Kent, 73, worked until 72 as a vice president of corporate relations and runs a consulting business. Kent said he counterbalances the downward market trend by investing in energy stocks that are up this year. He expects Social Security won’t change or be touched by Congress anytime soon.

“There will continue to be uncertainty as our country attempts to find ways out of our current economic mess, and if Americans don’t have control over their own lives and depend too much on the government, they will continue to be faced with uncertainty,” Kent said, citing federal deficit spending and long-term debts as a particular concern. “Each of us is responsible for our own actions.”

Still, even Trump voters who trusted his vision for the economy said they doubt this level of volatility is sustainable.

Joseph Dennis, 73, voted for Trump but wishes the administration’s decisions on tariffs and federal cuts were less extreme, adding he’s concerned about the market’s volatility.

Dennis started multiple businesses and retired at 51 after diversifying his portfolio and staying in conservative investments. He grew his wealth by buying rental properties after the 2007 real estate crash, and he keeps much of his money in cash CDs and money market funds.

“I hope he knows what he’s doing, but I’m not so sure,” Dennis said.

Many fear coming policy changes and an economic downturn

Meanwhile, the market downturn and policy uncertainty have heightened fears for older Americans in more vulnerable financial situations.

Peter Young, 69, worries his finances will become even tighter over the next few months.

Young retired at 62 with decent savings after years as a manufacturing manager and electronics technician. But after struggling to secure more work and with his health declining, he ate through his savings, had his car repossessed, and lost some medical coverage.

Young, who has terminal cancer, was disenrolled from Medicaid in Nevada last year for making too much from Supplemental Security Income. He anticipates with government cuts and the market downturn, he’ll face increasing financial hurdles as his health declines.

“This country is in for its roughest ride in 80 years, and that will impact us all no matter what,” Young said. He added his retirement “sure won’t be the Golden Years of Hollywood and AARP, but then again, as trite as it sounds, it could always be worse.”

Some older Americans with more financial security still feel the immediate effects of Trump’s economic policies.

Ed Harris, 69, said he lives comfortably in Arizona as a retired product engineer. Though satisfied with his economic condition, he said he’s worried about middle- and lower-income Americans who may experience hardship in the next few months. “Gas prices, groceries, drugs, and even medical prices are up,” Harris said, noting he’s nervous that many older Americans may be left without Medicaid benefits if the program faces deep cuts from Congress later this year.

Gloria Rodriguez, 69, fears the economy may not improve enough for her to get back on her feet. Rodriguez said her Social Security is not enough for her to live, and she became homeless after her husband died a few years ago. Rodriguez now stays with with a friend but fears she may not find a place to live on her own given rising costs and little income.

“I am very afraid of the way the world is today, with so much uncertainty and people losing their money and jobs,” Rodriguez said.

Market volatility worries people still approaching retirement, too

Margarita Sdoukos, 49, and her husband are worried they may have to delay their retirement. They planned to stop working in six years, but Sdoukos doubts they can afford it.

Sdoukos said they have lost “tens of thousands” of dollars in the stock market since January and are shifting to safer investments for their 401(k), even if they are less lucrative. She’s also cashing out her teacher’s pension due to “uncertainty in the government” and is concerned about potential changes to Social Security.

Eight financial advisors and wealth managers told BI this week that older Americans shouldn’t panic. Now is a good time for those with fewer savings or without a retirement plan to consider crafting one and cutting back on unnecessary spending, they agreed.

“We don’t even think about retirement right now,” Sdoukos said. “We’re just trying to get through these next four years.”