NEW YORK (AP) — Michael Montgomery, a 66-year-old professor from Huntington Woods, Michigan, used to check his retirement account weekly with satisfaction. However, recent market volatility has led him to avoid checking altogether. “I’m not looking,” he says, expressing concerns about whether he can retire as planned. Many Americans nearing or in retirement share his anxiety, worried about outliving their savings or delaying retirement plans.
Montgomery and his wife adjusted their portfolio after Election Day, moving more funds into bonds. Yet, he remains uncertain about further actions given the global economic impact of Washington’s decisions. “I hope like hell I don’t lose all my retirement savings,” he says. “But where else could you put the money that these people could not disorder? They can’t get into your mattress but that’s about it.”
Experts had warned U.S. stocks were overpriced even before President Donald Trump’s re-election. Tariffs have added new uncertainty, despite a recent stock rally. The S&P 500 is down 10% from its February high, with steeper losses in the Nasdaq and small-cap stocks. Bonds and the U.S. dollar have also shown volatility, prompting recession warnings from economists.
Jeanne Oats Estridge, 71, feels so “paranoid” she considered moving all her investments to cash. Her financial planner advised against it. Estridge, who retired from software engineering and now writes books, has seen her account drop by over $40,000. She criticizes Washington’s response to market volatility, including Trump’s claim that it’s “a great time to buy.”
The Cboe Volatility Index, a “fear gauge,” reached its highest level in five years earlier this month. Trump urged calm regarding tariff impacts on investments, while Treasury Secretary Scott Bessent downplayed the possibility of delayed retirements. This nonchalance frustrates older investors like Peter Rost, 72, who retired last year and planned to supplement Social Security with retirement savings. He avoids locking in losses by withdrawing funds while his account drops.
Financial advisers report increased calls amid market uncertainty. Tj Binkowski notes that retirees feel the emotional strain of obsessively checking accounts. “When you’re retired, paper losses aren’t just on paper anymore,” he says. “You’re locking them in every month that you take money out.”
Paul Duesterhaus, 68, is avoiding an IRA withdrawal this year to prevent selling low. He plans to cut expenses like buying a new car and dining out. He anticipates long-term trade war effects impacting all Americans.
Older adults experience more stress than younger ones regarding retirement savings. An April poll found nearly half of adults aged 45 and older consider retirement savings a “major” stress source, compared to one-third of younger people. Many older investors follow expert advice to fine-tune investments but avoid drastic moves.
Steve Turner, 74, from Chesterfield, Missouri, finds himself anxious when logging into his retirement account. “You worry that things may work themselves out in the long run, but you don’t have as long,” he says. “You’re not 30, you’re not 40, you’re not 50, you’re not even 60.”
— new from AP News