'We Just Have To Hope We Have Enough Time To Recover': Retirees Reeling After Market Drops Hit Their Nest Eggs

For retirees like Paula, 68, from New Jersey, the recent market plunge brought more than just numbers on a screen — it reignited old fears about outliving savings. "I'm just kind of stunned, and with so much money in the market, we just sort of have to hope we have enough time to recover," Paula told NBC News. Like many Americans who rely on 401(k) investments for retirement income, she's now grappling with uncertainty about what lies ahead.

Last week saw U.S. stock markets tumble in reaction to sweeping new tariffs introduced by President Donald Trump. On Friday, the S&P 500 dropped 6%, Nasdaq sank 5.8%, and the Dow lost over 2,200 points — marking one of the steepest declines since the pandemic crash in 2020. Combined with Thursday's losses, the market saw its largest two-day drop in history, with $6.6 trillion in value wiped out. 

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‘I Can't Stay Retired If This Continues’

Victor Fettes, 54, retired a week before the downturn. He told NBC News he lost $58,000 in just two days. "If that continues, I can't stay retired," he said. For those like Fettes, the timing couldn't be worse. Retirement plans that felt solid just days earlier are now under review.

Financial planner Brian Duffy told KOMO-TV News in Seattle that emotional reactions are common when markets dip — especially for those close to retirement. "Generally, those who are most emotional are unsure if they are prepped for retirement," he said. "Do not make long-term decisions on short-term news."

The Impact of Tariffs on Your 401(k)

The value of a 401(k) is closely tied to the performance of the stock market. And when the market drops suddenly, so do retirement account balances. Treasury Secretary Scott Bessent told NBC's "Meet the Press" on Sunday that, "Americans who want to retire right now, Americans who have put away for years in their savings accounts, I think they don’t look at the day-to-day fluctuations of what’s happening. And you know, in fact, most Americans don’t have everything in the market."

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Bessent added that 401(k) plans often include a mix of stocks and bonds, like the popular "60/40" allocation — 60% stocks and 40% bonds. 

While some in Washington suggest the downturn is temporary and that long-term investors shouldn't worry, many retirees don't have decades left to wait for a recovery. 

Reevaluating Plans and Spending

Some Americans are hitting pause on their spending plans. Paula told NBC News that she and her partner are holding off on home renovations. Others are concerned about the impact on property values, particularly if they plan to sell. Mark Johnson, a 42-year veteran lobbyist from Washington, said the market turbulence made him question whether he should delay his upcoming retirement.

"What will this do to the value of my home which I plan to put on the market next month?" he asked KOMO News. Johnson had mapped out a post-retirement road trip in his RV to visit all 50 state capitals — but now wonders if he'll need to push back those plans.

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Expert Advice: Don't Panic, Rebalance Instead

Brad Clark, CEO of Solomon Financial, and other financial experts say the most important move right now is not to panic. Instead, this could be a good time to revisit your portfolio strategy.

"If you're near retirement, consider rebalancing — don't just go to cash," Clark told Time magazine. The common mantra of "sell high, buy low" still applies, but it's important to consult a financial advisor before making major changes.

Duffy said something similar, emphasizing that while recessions can feel long, they typically last 12 to 14 months. In contrast, bull markets can stretch out over several years. Keeping a long-term perspective is key — even if retirement is just around the corner.

For retirees and those nearing the milestone, the recent market volatility has created a wave of financial unease. Some are adjusting their plans, others are holding steady and hoping the market rebounds.

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