The Society of Pension Professionals has published a whitepaper, exploring the potential impact of US tariffs on UK pension schemes.
The SPP has sought to utilise the diverse expertise of its membership in producing this report, which is aimed at those running these schemes, and members saving within them. The paper looks at the impact on both DC and DB schemes.
The SPP says that the tariffs announced by the president Donald Trump have resulted in almost every country paying new taxes on goods imported to the US, causing significant global economic turbulence.
This white paper says that while the millions in DB schemes are largely unaffected by the tariff fallout, the potential impact on DC schemes could be “significant”.
It says:n “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 retirement income of up to 20 per cent.”
However the paper also provides a degree of reassurance, adding: “The stock market has endured several sudden and sizeable falls this century but recovered over time.” It urges the pensions industry, and the Government to“… remind UK adults that making significant, reactive changes to pensions and other savings generally leads to poor outcomes, compared to cool heads and careful planning.”
The SPP adds that the current volatility serves as a reminder of the importance of regular, long-term saving into a pension across a diversified portfolio of investments, and adds that any steps taken to limit investment freedom can be unhelpful.
These comments comes as the government is understood to be considering measures that will see DC schemes pledge to invest up to 10 per cent of assets in private markets, of which half will be in the UK.
SPP investment committee chair Simon Daniel says: “The world is again enduring a period of financial turbulence and this has naturally created some uncertainty for UK savers and investors.
“This SPP paper hopefully sheds some light on the likely impact for both those who are saving into a pension arrangement and those who have already retired. The overall message from this paper is that making significant, reactive changes to pensions and other savings is generally not ideal compared with keeping a cool head and planning carefully.”
