Amid increasing worries about market volatility and the possibility of a recession, many American workers are deeply focused on handling the financial challenges of day-to-day life — paying for mortgages and rents, keeping up with rising grocery bills, fuel expenses and other costs.
As they tackle these pressing responsibilities, they remain mindful of the long term, contributing to 401(k) plans and IRAs (Individual Retirement Accounts) for a secure retirement and to ensure financial stability in an uncertain economic landscape.
Kevin O’Leary, widely recognized as an entrepreneur, investor, and one of the key figures on ABC’s Shark Tank, recently shared candid opinions regarding current U.S. tariff policies and how they affect Americans’ investments — even discussing what he thinks about the chances of a recession.Â
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On the whole, U.S. workers recognize the importance of retirement savings tools such as 401(k) plans and IRAs, even when markets are facing headwinds.Â
Participating in an employer-sponsored 401(k) plan is a reliable method for building retirement savings, especially when employers offer matching contributions.Â
With automatic deductions taken directly from paychecks, this approach ensures consistent saving without requiring additional action, making it both convenient and efficient.
The maximum contribution limit for 401(k) plans has increased to $23,500 in 2025, up from $23,000 in 2024. Workers aged 60 to 63 can now make higher catch-up contributions to 401(k) plans, up to $11,250, compared to $7,500 for other eligible workers.
Related: Dave Ramsey bluntly warns Americans about Social Security
An IRA opens the door to investment opportunities that may not be available through a 401(k), which can be attractive to certain people.
That said, IRAs often require more hands-on involvement, as users must establish the account and organize automatic contributions on their own. This added layer of responsibility could result in some overlooking its benefits.
The contribution limit for IRAs remains at $7,000 in 2025, with an additional $1,000 catch-up contribution for people aged 50 and older.
Considering current fears among Americans about rapid fluctuations in their 401(k) and IRA values, O’Leary has some important thoughts about the probability of a looming recession.
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Kevin O’Leary reacts to recession fears as Americans watch their 401(k)s
As fast-moving changes in their 401(k) plans and retirement savings unfold, American workers and retirees find themselves concerned about what their financial future might hold once the uncertainty subsides.
In a recent television appearance, CNN’s John Berman asked O’Leary what he thought about the near-term possibility of a recession.
“Let me just say that we’ve been talking about recession now for four years in a row, you may recall. Forecasters of recessions have been wrong for four years straight,” O’Leary said. “But we are not in a recession right now. it really depends on how long these tariff wars go on for.”
More on retirement:
- Scott Galloway sends strong message on Social Security
- Jean Chatzky cautions U.S. workers on Social Security, retirement money
- Dave Ramsey bluntly warns Americans about retirement
O’Leary explained his views on what he believes will happen next.
“It’s widely assumed right now that the European bloc, the British, Swiss, Canadian, and Mexican deals will get resolved in relatively short order,” he said. “The giant question mark, and certainly this is on (Fed chair Jerome) Powell’s mind when he refuses to drop rates, is how long will the China situation last? Because that one looks far more complicated.”
Related: Scott Galloway sends strong message on Social Security
Kevin O’Leary explains U.S.-China relations and their impact on investing decisions
O’Leary said he believes that, with China, the issue is not entirely about trade and tariffs.Â
“It’s IP (intellectual property) theft and access to markets and WTO (World Trade Organization) issues. There’s a lot on the table in China,” he said.
“And so I would argue right now that people that count out the American economy are constantly wrong all the time. It’s the largest economy on Earth,” he added. “It represents 26% of the world’s GDP (gross domestic product) and almost 40% of all consumables. So it’s a difficult tricky situation. I agree.”Â
“But I’m an investor. I have to make these decisions every day. And I’m not investing for a recession right now.”
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
