The trade war between the United States and China has caused many Americans to worry about retirement savings. Gail and David Rhames, a couple from Hooksett, New Hampshire, are concerned. David, 67, retired from a company that made specialized ultrasonic machinery for airplanes last summer.
Gail, 64, hopes to retire next year from her job as a college administrator. Together, they used to earn about $145,000 a year. Now, they are adjusting to living on less.
They live on Gail’s $60,000 salary and David’s social security. While they can cover their monthly expenses of about $6,000, it requires more budgeting. “It’s going to be harder for me to absorb these things,” David said about the rising costs of everyday items.
“So it’s scary.”
The Rhames have been loyal Trump voters. Their priorities are the economy and inflation. However, they are nervous about the impact of economic policy on their retirement plans.
Retirement worries for Hooksett couple
“I mean, if it goes really bad, who knows what’s going to happen next?” said Gail. “It’s not like we’re 30 and we can recoup. So it would impact the retirement. I’d have to feel secure before deciding to stop work.”
A recent survey by Voya Financial shows that the Rhames are not alone in their concerns. More than a third of respondents said that tariffs and economic uncertainty have severely impacted their retirement savings. Nearly 40% also said they have delayed or strongly consider delaying their planned retirement date.
Financial advisors suggest that strategies during periods of volatility could differ depending on how close individuals are to retirement. Those close to retirement could consider adjusting their portfolios, while those further from retirement should maintain their current strategies. Despite the uncertainty, the Rhameses look forward to spending more time together in retirement.
They will celebrate their 40th anniversary in November. “It’s almost like a second marriage for us, a second honeymoon,” said David. “We do everything together.”