{"id":108745,"date":"2025-05-07T10:15:00","date_gmt":"2025-05-07T09:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=108745"},"modified":"2025-05-07T10:12:40","modified_gmt":"2025-05-07T09:12:40","slug":"trumps-tariffs-could-slash-uk-pensions-by-20","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/trumps-tariffs-could-slash-uk-pensions-by-20\/","title":{"rendered":"Trump’s Tariffs Could Slash UK Pensions by 20%, Say Industry Experts"},"content":{"rendered":"\n

Sweeping tariffs introduced by US president Donald Trump<\/strong> have sent global financial markets into renewed turmoil, with UK pensioners now facing potential losses of up to 20 per cent<\/strong> in retirement income. <\/p>\n\n\n\n

The warning comes from the Society of Pension Professionals (SPP<\/a>)<\/strong>, which has published new research outlining how defined contribution (DC) pensions are particularly exposed.<\/p>\n\n\n\n

The SPP report highlights the knock-on effects of Trump\u2019s economic policies, specifically the market volatility and falling bond yields that have followed his latest protectionist measures. <\/p>\n\n\n\n

Market Turmoil Directly Impacting Defined Contribution Pensions<\/strong><\/h2>\n\n\n\n

According to the SPP, UK pensioners <\/a>with defined contribution (DC)<\/strong> schemes are the most at risk from the recent financial turbulence. These pension plans rely heavily on the performance of investments such as equities and bonds<\/strong>, which have been significantly affected by the sharp downturn in global markets.<\/p>\n\n\n\n

The informational paper, published in early May, notes that since April 2025, equity markets have undergone a substantial correction, compounded by a drop in government bond yields. This dual hit has eroded the value of pension pots, leaving many DC savers with potentially one-fifth less<\/strong> in projected retirement income. <\/p>\n\n\n\n

\u201cIt is possible that some DC savers may see a reduction in retirement income of up to 20 per cent,\u201d the report states.<\/p>\n\n\n\n

Simon Daniel<\/a>, Chair of the SPP\u2019s Investment Committee, stressed the importance of long-term planning amid uncertainty. \u201cThe world is again enduring a period of financial turbulence and this has naturally created some uncertainty for UK savers and investors,\u201d he said. <\/p>\n\n\n\n

He cautioned against rash decisions: \u201cMaking significant, reactive changes to pensions and other savings is generally not ideal compared with keeping a cool head and planning carefully.\u201d<\/p>\n\n\n\n

Trump\u2019s Policies Fuel Global Economic Instability<\/strong><\/h2>\n\n\n\n

The pension concerns follow a broader wave of instability driven by Trump\u2019s tariffs <\/a>and foreign policy moves during the opening months of his second presidential term. According to Dr Steve Dunne<\/strong><\/a>, a researcher at the University of Warwick, Trump\u2019s actions have \u201cdevastated \u2013 perhaps irreparably \u2013 economic confidence in the US.\u201d <\/p>\n\n\n\n

The scale of disruption is underscored by data showing that \u00a35 trillion<\/strong> was wiped from US equities in just two days (3\u20134 April), marking the largest such loss in history.<\/p>\n\n\n\n

Dr Dunne adds that long-term trust in the US economy has been weakened, with consequences for the bond market, the US dollar\u2019s global role, and overall investment sentiment. <\/p>\n\n\n\n

\u201cPerhaps most significantly, declining global trust will accelerate processes of de-dollarisation and reduce reliance on the dollar as a reserve currency. De-dollarisation would leave the US economically marginalised in a more multipolar global economy.\u201d he noted.<\/p>\n\n\n\n

Meanwhile, Trump has faced criticism from within his own party. Former Vice-President Mike Pence<\/strong>, in an interview with CNN, condemned the tariffs for triggering a \u201cprice shock\u201d and warned that public pressure could force a shift in White House strategy. <\/p>\n","protected":false},"excerpt":{"rendered":"

While many investors are advised to remain calm, the findings suggest that the damage to retirement savings may already be significant.<\/p>\n","protected":false},"author":10,"featured_media":108747,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,46],"tags":[],"class_list":["post-108745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement","category-social-welfare","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/108745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=108745"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/108745\/revisions"}],"predecessor-version":[{"id":108761,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/108745\/revisions\/108761"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/108747"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=108745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=108745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=108745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}