Donald Trump’s tariffs could hit UK pensions, with DC savers warned they may experience a 20% cut in their retirement income.

The warning has come from The Society of Pension Professionals in a new report published today called ‘Trump’s Tariffs: Navigating the Fallout.’

The report warns that: “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%.”

It said DC savers who rely on drawdown to fund their retirement face some difficult decisions. “Do they sell less today, resulting in less income, in the hope that their pension pot will recover in the future or do they keep drawing down the same amount, knowing that they may have less to depend on in the future?”

The report points out that withdrawing during a downturn is always likely to reduce funds faster, “so taking independent financial advice on a flexible withdrawal strategy is strongly advised.”

It also pointed out that some in a DC pension scheme with large equity allocations may consider coming out of retirement in an attempt to make up any shortfall.

It’s not gloomy for all, the paper pointed out, reassuring those in a DB scheme, as well as those who rely solely on the state pension, that they are likely to be largely unaffected.

Simon Daniel, chair of the SPP’s investment committee, said: “The world is again enduring a period of financial turbulence and this has naturally created some uncertainty for UK savers and investors.

“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.”

The Society of Pension Professionals has 88 corporate members who collectively employ more than 15,000 pension professionals.