Older Americans Reassess Retirement Plans, Reduce Household Spending In Wake of Tariffs
The Trump administration’s rollout of sweeping tariffs set off weeks of volatility in major trading indices, spooking financial analysts and worrying seniors reliant on market-based savings. Market instability can prove catastrophic for those living off savings or preparing to wind down their careers, and some older adults are delaying their retirement plans due to economic uncertainty.
Recognizing this volatile moment is only a snapshot along the lengthy timeline of a resilient economy, SeniorLiving.org wanted to gauge the current mindset of older Americans. We conducted a study of over 1,000 adults aged 50+ to assess whether they’d been affected by the tariff fallout, how they’re adjusting their retirement plans, and what they expect the economy to look like in the near future.
Key Findings:
- The recent tariff-driven market downturn resulted in a $15,000 median loss of investment value for adults over 50. Despite losses, fewer than half of adults aged 50+ feel the tariffs have worsened their financial outlook.
- Retirees, however, are a bit more concerned: nearly 60% of retirees have a worse outlook on their financial stability since the April 2nd tariff announcement.
- Three out of four full-time workers over 50 have adjusted their retirement plans due to the tariff-driven downturn, and 40% feel compelled to delay or forego their retirement.
- Over 40% of adults 50+ have trimmed consumer spending since tariffs impacted the markets.
- More than one-quarter of Trump voters over age 50 now regret picking him for President. That share rises to one-third among Americans over 50 who have suffered recent market losses.
Are Older Americans Concerned About the Current Economy?
On April 2nd, 2025, the Trump administration commenced an extensive tariff initiative to fulfill campaign promises and reinforce America’s global economic supremacy. Financial markets reacted unfavorably to the policy, with major indices plummeting and the S&P 500 shedding $5 trillion over two days of trading.
Those shockwaves hit investors hard, including older Americans with retirement funds tied to stocks. Our study, fielded on April 22, found that among the 83 percent of adults age 50+ holding market-based accounts, the median savings loss in the post-tariff plunge was $15,000. Devaluation varied widely, with 12 percent of investors taking hits of $50,000 or more. One retiree divulged that the losses they’d already incurred amounted to three years of living expenses.
Despite the sticker shock of the tariff’s rough start, most older Americans aren't panicking. Less than half of adults aged 50+ have soured on their financial outlook since the tariff’s tough launch.
However, we found worries are more prevalent among retirees than those still working full-time. Nearly 60 percent of retired employees feel their financial situation has worsened due to the tariffs, and more than one-third (34 percent) believe their positions have worsened “significantly.”
Older Americans in the workforce maintained a more positive outlook, though they still demonstrated notable doubts. Forty-five percent of pre-retirees feel their financial situation has worsened since the tariffs, with one in five judging their prospects “significantly worsened.”
Current retirees likely exhibit greater pessimism because they live on fixed incomes, have less investment flexibility, may be experiencing higher healthcare costs, and have trenchant memories of previous economic downturns. Those still working may maintain greater optimism because they have a longer time horizon to shift or shore up investments while awaiting a longer-term recovery.
Let’s examine how adults age 50+ are adjusting their spending and investing habits.
Tariff-Driven Lifestyle Changes Among Americans Over 50
President Trump admitted that Americans may experience economic pain from his trade approach, but claims that systemic gains will ultimately be worth that price. His economic team has dismissed the significance of investment drops even as his tariff pullback sparked a market rebound. However, jittery older Americans have already altered their spending habits and retirement planning.
Though half of older Americans haven’t changed their shopping habits in the wake of the downturn, more than 40 percent have decreased their spending since the advent of new tariffs, signaling personal concerns inspired by economic uncertainty.
Among respondents over 50 whose retirement savings suffered in the recent market plunge, significant numbers are amending retirement plans in response to tariff-linked losses.
One-half will be reducing monthly spending; one-third will delay their retirement; one in five now wonders whether they can retire at all, while a similar number have resigned themselves to expecting lower living standards in retirement. All told, three out of four are implementing or contemplating one or more of the following changes to maintain financial stability:
Some retirees and near-retirees are adhering to moderate, practical adjustments like redistributing investments (18 percent) and increasing account contributions in the hope of offsetting losses (10 percent). Others are committing to more radical retirement changes, including late-life relocation (14 percent), skimping on healthcare (10 percent), selling off assets (nine percent), or returning to work part-time (15 percent). Thirty-seven percent of full-time workers aged 50+ who suffered market losses are delaying retirement or considering whether they can afford it all.
Despite market volatility, most financial advisers are counseling patience and urging clients to ride out the current turbulence. Rather than fueling angst by constantly checking account balances during wild swings, they say most stakeholders should let the dust settle before considering radical investment changes. If some reaction feels imperative, upping contributions and shifting/diversifying risks are sober moves that can protect nest eggs while calming nerves. Analysts also advise that removing some money from the markets to insulate against further drops can be sensible for retirees or those on the verge of retirement.
Before withdrawing significant funds to stuff into mattresses or stock up on gold bars, experts remind us that stocks are traditionally the best asset class to secure growth that outpaces inflation. Some even emphasize that this devaluation presents an appealing opportunity to hoover up cheap shares for those with a decade or more remaining work.
It's also important to remember that every citizen’s profile is unique and that no single financial plan will fit all. Different assets, health situations, expenses, dependents, income levels, life expectancies, and other factors influence the determination of optimal investment portfolios. Consult a certified investment professional when settling on a revised strategy.
Seniors’ Observations on the Economy
In addition to our data-driven survey questions, we invited respondents to share open-ended thoughts on recent market instability and its impact on their retirement plans, receiving diverse perspectives spanning politics and finances.
In our politically divided nation, opinions about President Trump and his economic policies were predictably split. Critics questioned the administration's economic competence, with some directly attributing their financial challenges to the President's actions. One respondent lamented, “I've worked 31 years looking forward to my retirement, and he's ruined it in three months.” Conversely, supporters expressed confidence in the tariff strategy, believing current market difficulties would prove temporary and yield more substantial investments and economic growth.
Some respondents had very little concern, due to their pensions, conservative investment approaches, or diversification strategies including cryptocurrencies. Many characterized recent market corrections as minor, expressing faith in eventual recovery. A notable contingent even viewed the downturn as an investment opportunity.
However, many retirees and pre-retirees expressed significant financial anxiety. These individuals frequently mentioned stress and uncertainty about their future, with some planning to postpone retirement or return to work. Financial adjustments included canceling travel plans, forgoing major purchases, or temporarily relying on credit while awaiting market recovery.
The most thoughtful responses came from moderate Americans trying to navigate this uncertainty pragmatically. Some avoided checking account balances during volatile periods; others acknowledged their concerns while maintaining disciplined investment approaches. One respondent said, “I am extremely concerned about retirement in this current economic climate, but staying the course and crossing my fingers that the markets recover before I retire. If they do, I should be fine. If they do not, I will have some tough decisions to make.”
This sentiment captures the position many older Americans find themselves in—hoping for market recovery before retirement, but preparing for difficult decisions should that recovery not materialize.
Conclusion
Though most Americans over 50 aren’t overreacting to early tariff results, some show signs of buyer’s remorse.
Donald Trump holds the lowest approval rating of any modern president through his first 100 days, and even some of his backers may be wavering due to the fallout from tariffs. Among all Trump voters in our survey, 28 percent now regret their vote. The share of regretful supporters jumped to 36 percent among Trump voters who have suffered recent losses in the market.
Changing the President isn’t an option for older Americans currently fretting over retirement funds, but altering finances and lifestyles present a practical choice.
Recent market losses have sent shockwaves through the economy, profoundly impacting older Americans’ retirement plans. It may be too early to determine whether President Trump’s tariff policies will reap rewards or do lasting damage.
Regardless of income, politics, or age, all Americans should hope for a strong national economy. However, retirees (and those nearing that stage) may lack the luxury of time to await a longer-term recovery. Downturns like these can challenge the ability of savings, assets, and fixed incomes to sustain golden years fully.
Many adults over 50 now fear for their financial security and are altering retirement plans and investment strategies. Such reactions are understandable but shouldn't be made in haste and should always be considered with the aid of qualified advisers.
Our Data
In April 2025, SeniorLiving.org surveyed 1,001 Americans aged 50+ whose gender and ethnic apportionments represented the U.S. population according to current census figures. Respondents were asked about their financial situation, investment positions, employment status, retirement plans, and political affiliations/sentiments, specifically concerning recent market developments and tariff policies. We also allowed them to freely express opinions about the current economic environment and how it affected their retirement plans.