Tens of thousands of British workers will be forced to delay retirement or even go back to work because of the market turmoil triggered by Donald Trump’s trade war, experts have warned.
The Society of Pension Professionals (SPP), which includes Aviva and Legal & General among its members, said savers’ pension pots faced a hit of up to 20pc after the US president announced new import taxes on goods from almost every country on April 2.
The body said workplace pensions known as defined contribution (DC) schemes – where pots are linked to stock market returns and government borrowing costs – had suffered the “biggest impact” from Mr Trump’s so-called liberation day.
It said the extreme moves could even result in some savers delaying their retirement plans. Its report warned: “Typically, people about to retire with DC schemes will have less invested in equity markets, but there will be some with a substantial proportion.
“Given the scale of the equity market falls since early April 2025, and the fall in government bond yields, it is possible that some DC savers may see a reduction in potential retirement income of up to 20pc.
“Given the speed and volatility of such moves, those individuals may decide to delay taking their pension where possible.” It said a small number of people already in retirement may also be forced to go back to work “in an attempt to make up any shortfall”.
These pensioners, who regularly sell a small portion of their investments to fund their retirement, “will face a difficult decision”, according to the SPP.
Investors have been left reeling from Mr Trump’s tariffs announcements that saw levies on imports from China surge above 100pc.
The S&P 500 in America plummeted more than 12pc between April 2 and April 8, but stocks have steadily recovered since the administration stepped back from its most hawkish trade policies.
Borrowing costs also rose in the US and UK, with a surge in US bond yields playing a crucial role in Mr Trump’s decision to delay the implementation of his liberation day tariffs by 90 days.
Simon Daniel, of the SPP, said: “The world is again enduring a period of financial turbulence and this has naturally created some uncertainty for UK savers and investors.”
While more than 30m people have money in a workplace pension scheme, it is understood the number with a “substantial proportion” in equities is likely to be in the tens of thousands as most schemes switch into lower-risk assets such as bonds and even cash as people approach retirement.
Those eligible for gold-plated defined benefit schemes – which guarantee income on retirement – are unaffected. As are people who rely on the state pension.
