When politics hits your 401(k): Tariffs have employees seeking advice on retirement plans

Remember when our biggest worry about retirement was saving enough?

With President Trump’s tariffs dominating headlines and economic uncertainty swirling, HR professionals are facing a new challenge: helping anxious employees navigate their retirement planning in turbulent times.

A recent survey of more than 2,000 workers in the U.S. by Justworks, a PEO and payroll services firm, and The Harris Poll revealed that 3 in 5 workers believe policy changes will affect them this year more than the advancement of AI — with their greatest fear having benefits like retirement contributions slashed.

When it comes to acting on that fear, David Feinberg, senior vp of risk and insurance at Justworks, offers some reassurance, however. “We’re not seeing a wave of employees changing their retirement plans in response to market volatility or tariff headlines,” he said, noting that younger employees with decades of work ahead of them are generally staying the course, while the potential impact for older employees is more tangible.

“Having a plan and sticking with it can be very grounding in times like these,” as he put it.

That isn’t to say employees are not concerned. In fact, nearly half said they were turning to their HR departments for guidance on the recent policy shifts — and that was before the latest market rollercoaster.

“Tariffs are now part of the economic bloodstream,” said Lisa Stevens, chief administrative officer at the professional services firm Aon, adding that while there has been a 90-day pause in most of the tariffs, providing some breathing room, broader cost pressure on businesses remains. That pressure can lead to budget cuts, hiring freezes and even layoffs — all of which disrupt organizational stability, she explained.

Stevens advises HR professionals that guiding employees through these times of volatility is essential, noting how stress and instability can undermine productivity.

“Workers of all generations are likely feeling anxious as the state of tariffs continues to shift, and their investments feel the weight of this volatility,” said Ben Bakkum, senior investment strategist at the investment and savings app Betterment. “Globally diversified portfolios, with exposure to bonds and international equities, have helped cushion recent losses and demonstrate the value of maintaining a broad allocation.”

He advises those closer to retirement to consider shifting allocations to dial back risk in line with their timelines rather than abandoning their retirement plans entirely. “Staying invested through turbulence rather than reacting to it is the best mindset,” he said.

Even with anxiety running high, Lauren Winans, CEO of HR consultancy Next Level Benefits, observes, like Feinberg, that most employees aren’t hitting the panic button just yet. “At this time, the evidence is presenting itself as concern and worry rather than taking actions like delaying retirement or pulling back on investing,” she said.

Smart employers aren’t waiting for the worry to turn into action, though. Winans noted that companies are getting ahead of the issue by frequently updating employees via digital platforms, newsletters and virtual meetings. Many are also beefing up their financial wellness offerings with access to advisers, to help employees navigate their investment decisions and tamp down anxiety.

Another trend that could be accelerating is delayed retirement, according to Neil Costa, founder and CEO at HireClix, a recruitment marketing agency. Costa advises employers to consider adding a new type of employment status to the mix: “flextirement,” which allows employees to gradually reduce their hours while continuing to receive retirement benefits. Such an approach recognizes the value of experienced workers while giving them some much-needed financial breathing room.

“They have built a lifetime of skills and knowledge and can continue to leverage that in a flextirement situation,” he said, noting that one of the biggest ways to mitigate risk in retirement planning and savings in times such as these is to keep the income flowing.

It is not only employees who are worried. According to executive coaching firm Vistage, CEO confidence took a nosedive in the first quarter of this year, with 7 in 10 chief executives anticipating that the tariffs will harm their businesses.

The silver lining? Despite their concerns, the Vistage survey, based on responses from nearly 1,800 small to midsize business CEOs, found that nearly half still plan to increase hiring this year, with just 14% considering staff cuts.

Meanwhile, more of the workforce is leaning on employers for financial advice, according to a survey of more than 2,000 people by Human Interest, a 401(k) provider. It found that nearly half rank retirement as the life event they feel least financially prepared for, second only to medical emergencies.

When asked which topics employers should provide education around, retirement planning topped the list (with about half of employees making it a main priority), followed by investment strategies (31%) and savings tips (27%). Yet 1 in 3 employees reports getting no such financial resources from their employer.

What do workers want most aside from core benefits? Access to a financial adviser (30%), which ranked higher than career training (20%), gym memberships (16%), free lunches (14%) and home office stipends (10%).

While equal numbers of employees have made financial decisions based on advice from professional advisers and family or friends, twice as many regretted following advice from loved ones compared to professional guidance, according to the research.

As economic policies continue shifting, HR professionals have a unique opportunity to become champions of financial stability, helping calm employees’ economic anxieties while ensuring they stay focused on long-term financial goals — even when the daily news is raising everybody’s blood pressure.

As Costa put it, “It can be scary to think of investing in times of market volatility, but with history as a reference, we know that with time things always return to normal, if not better.”