Savers are facing a pensions nightmare triggered by Donald Trump\u2019s trade war, with experts warning tens of thousands may have to postpone retirement \u2014 or even head back to work.<\/p>\n
A leading pensions body has issued a stark warning that pots built up over decades could shrink by as much as 20%, wiping tens of thousands of pounds from retirement savings.<\/p>\n
The alert follows the former US president\u2019s decision to slap swingeing new tariffs on imports from almost every country, triggering turmoil on global stock markets and a spike in borrowing costs.<\/p>\n
The Society of Pension Professionals (SPP), which counts household names like Aviva and Legal & General among its members, said those in so-called defined contribution (DC) schemes \u2014 where savings rise and fall with the markets \u2014 were taking the biggest hit.<\/p>\n
In a report issued this week, the SPP warned: \u201cGiven 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 20%.\u201d<\/p>\n
The group added: \u201cGiven the speed and volatility of such moves, those individuals may decide to delay taking their pension where possible.\u201d<\/p>\n
Some already in retirement may be forced to rejoin the workforce, it said, in a bid to make up for shortfalls caused by falling investment returns.<\/p>\n
\u201cThey will face a difficult decision,\u201d the SPP warned, as many retirees rely on regularly selling parts of their investments to cover day-to-day costs.<\/p>\n
The alarm bells were triggered after Mr Trump\u2019s so-called Liberation Day on April 2, when he unveiled a raft of protectionist measures \u2014 including tariffs of more than 100 per cent on Chinese imports \u2014 sending financial markets into a tailspin.<\/p>\n
In the week that followed, the S&P 500 \u2014 America\u2019s leading stock index \u2014 slumped by more than 12%, before staging a partial recovery as the White House softened its stance.<\/p>\n
Borrowing costs also jumped in both the US and the UK, piling more pressure on pensions and investments. Surging bond yields in America were reportedly a key factor behind Mr Trump\u2019s decision to delay implementing the tariffs for 90 days.<\/p>\n
While more than 30 million Britons are enrolled in a workplace pension, most will be shielded from the worst of the turmoil, as savings are usually shifted into safer assets like bonds or cash as retirement approaches.<\/p>\n
However, tens of thousands with a heavy weighting in shares and riskier investments could face serious losses \u2014 especially those close to cashing in.<\/p>\n
Simon Daniel, of the SPP, said: \u201cThe world is again enduring a period of financial turbulence and this has naturally created some uncertainty for UK savers and investors.\u201d<\/p>\n
Those on defined benefit pensions \u2014 often referred to as gold-plated schemes \u2014 as well as state pension<\/a> recipients, are unaffected.<\/p>\n But the wider economic fallout could be grim. The International Monetary Fund last month sharply downgraded the UK\u2019s growth forecast, blaming trade tensions. In response, markets are now pricing in interest rate<\/a> cuts, with the Bank of England expected to trim rates from 4.5% to 4.25% this Thursday.<\/p>\n