Gary's Seniors on Edge as Tariffs Threaten Their Savings

Yahoo

24-04-2025

On a recent weekday afternoon, the Gary Public Library's community room was filled with dozens of seniors seeking community, friendship, and a game of bingo.
For members of the Senior Citizens Friendship Club, it's a welcome escape from the stress and uncertainty of daily life. It offers a brief window to laugh, unwind, and connect with others.
'Trump ain't getting this,' one woman said as she walked out the door, waving her bingo winnings envelope. A lighthearted joke to some, and for others, a reminder of how deeply national politics are starting to affect their everyday lives.
Since President Donald Trump announced this month he would raise tariffs on imports from China and other countries, the economy has become increasingly volatile. The stock market has dipped, 401(k)s and other retirement accounts have experienced recent losses, and inflation has driven up the cost of everyday goods. Many Gary seniors and retirees say they are worried about how the economic shift will impact their livelihoods and financial security.
'We've worked hard for years and proved ourselves for our Social Security and pensions,' Irene Lay said.
As a retired 83-year-old, Lay relies solely on her pension and Social Security check. If either is cut, she said, she doesn't know how she'll get by.
'It's gonna be a terrible deal to withstand,' she said, shaking her head. A lifelong Gary resident, she fears how these new changes will affect many of her friends.
Mattie Whittler shared the sentiment and scared feelings on what changes could look like for each individual and the city. With almost 15% of the city's population age 65 or over, many people depend on income from programs like Social Security and retirement funds.
'It has crossed my mind, and if he did that, it would be devastating,' Whittler said, referencing potential cuts to Social Security. Living on a fixed income, she said the thought of losing benefits has been unsettling.
While the 75-year-old hasn't started implementing or considering a budget yet, the uncertainty of the future scares her. With the back-and-forth on the tariff talks with countries like China, she can only hope that something is done without affecting her and other seniors' benefits.
'He must have missed government class because tariffs are paid by the American people,' she said. 'You can't tell another country what to do; he wouldn't want anyone telling us what to do.'
Valerie Lee, senior group president with the Senior Citizens Friendship Club, said she is glad the group is around to foster social interactions between seniors in the city and provide them with a space to discuss topics like these.
'Don't act like it's an entitlement program,' she said, as she cleaned up the room after the meeting. 'This is a program that we've paid into for years and years, and now you want to change it and do this and that. We're not pleased with that.'
Micah Pollack, an economics professor at Indiana University Northwest, said inflation and rising prices would have a significant impact on retirees if tariffs take effect.
'It's going to affect everybody, but especially retirees on a fixed income,' he said. 'Those higher prices are going to eat into your budget much more rapidly.'
In anticipation of the upcoming tariffs, Pollack recommended people start cutting their budgets and try to save a little more now, so when the time comes, it won't affect them as much. He said making changes early can help prevent financial shortfalls.
For those nearing retirement, Pollack encouraged people to know what their retirement benefits will look like in the long run. That includes understanding the type of retirement plan they will have between pensions and 401(k), how inflation and the cost of living will affect it, and how the stock market will impact the money they receive monthly.
Still, Pollack said tariffs could possibly bring some long-term benefits to the Gary economy.
'Generally, stricter tariffs on steel are beneficial for Americans and the steel industry, which tends to be beneficial for the city of Gary,' he said.
While some economists see possible gains for the local economy down the line, residents like Lee remain focused on the immediate uncertainty.
Lee said her pension and other benefits are OK at the moment, but it's something that she's been thinking about over the past few months. Her daughter is among the millions of Americans affected by the cuts to her 401(k) and is scrambling to see what can be done in the future. She joked about going back to putting money in her mattress to make sure that every dollar she had worked for was where it was supposed to be.
'I just want to be heard,' she said. 'We are seniors, and we will be heard.'
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