Pension warning as many Brits could be forced to delay retirement or go back to work | Personal Finance | Finance

Thousands of Brits could be forced to delay their retirement because of Donald Trump’s import taxes. The US President announced the tariffs during his so-called liberation day on April 2, sparking market turmoil across the world.

The Society of Pension Professionals (SPP) said people’s workplace pensions could be hit by up to 20% as they are linked to the markets and government borrowing costs. The experts said pensions suffered the “biggest impact” from Trump’s tariffs, with some Brits potentially now facing the possibility of delaying their retirement plans.

As reported by The Telegraph, the SPP report said: “Typically, people about to retire with defined contribution (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.”

Meanwhile, other people already in retirement may be forced back to work. The SPP said these people might “face a difficult decision” in the future.

Trump’s announcements saw levies on imports from China increase by over 100%, which left investors reeling. Between April 2 and April 8, the S&P 500 plummeted more than 12% while the Nasdaq tumbled 6%.

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.”

There are reportedly around tens of thousands of people with a “substantial portion” of money in a workplace pension scheme. Those who are guaranteed income on retirement or who rely on the state pension will remain unaffected.

The UK is now reportedly close to agreeing a trade deal with the US that would slash tariffs on motor and steel exports. The extra 25% tariffs that were announced by Trump are expected to be reduced.

The UK will offer concessions to the US in return. These could include cuts on US cars and agricultural products, as well as softening of the digital services tax on tech firms.