Fraser, 63, a retiree from Essex, had intended to keep his £140,000 pension fund invested in stocks and shares, only withdrawing monthly profits to support himself until he reaches state pension age.
“I aimed to only take the excess, anything above £140,000. In recent years, I’ve been removing between £2,500 and £3,000 each month to cover my expenses. Then, by 67, I could have acquired a decent annuity. It was all going well, until Trump’s ‘liberation day’ tariffs hit.”
In a matter of days, Fraser’s pension fund plummeted by £32,000, nearly 23% of its value. While the markets regained some ground following Trump’s 90-day suspension of most “reciprocal” tariffs on Wednesday, the fluctuations have persisted amid the ongoing trade conflict between Washington and Beijing, remaining significantly below the beginning of the month.
Although Fraser had faced market turbulence before, the recent downturn had such a profound effect on his savings that he’s contemplating going back to work.
Over 30 years, Fraser contributed a total of £198,000 to his pension, and his investments in the stock market gained him over £50,000 in just three years. Despite a significant reduction in these returns due to Liz Truss’s mini-budget and Trump’s tariffs, he still reports substantial overall gains.
“It was great while it lasted; I still made £22,000 over those three years,” Fraser expressed. “The present question is: is this sustainable? It could spiral out of control. Trump’s presidency has cost me dearly. I’m now down to £108,000 and contemplating a part-time job at a supermarket. It’s insane, but I feel stuck in the stock market; I don’t see many alternatives.”
Fraser is one among a multitude of individuals globally who have shared their pension investment experiences in recent months, with many voicing concerns over devastating losses following Trump’s trade war initiation. Several noted their pension funds had diminished by 10% or more since early April, and younger investors in higher-risk funds reported losing up to 50% of their total lifetime gains.
Some individuals indicated that their financial plans had been utterly derailed; many were in the process of withdrawing their tax-free pension lump sum in the UK to pay off mortgages but found their anticipated funds no longer available. Among these was Xenofon Schizonikas, a 55-year-old veterinarian from Omagh, Northern Ireland.
“My slightly conservative stakeholder pension was performing exceptionally well even under Trump, occasionally increasing by £7,000 in a single day,” he shared. “Now, I’ve lost a significant portion; I’m down £35,000 from a peak of £357,000. I turned 55 on April 1 and intended to retire and withdraw funds to settle my mortgage, but everything fell apart in March.
“I have pancreatic cancer and wanted to retire on my pension funds to spend quality time with my children, but that goal seems out of reach now. I must work until I can no longer manage or until I am medically retired.”
While numerous individuals expressed shock and existential dread regarding the extreme market volatility affecting their retirement savings, many affirmed their decision to keep their money invested. The common rationale behind this choice was a fear that their savings were too minimal to withstand prolonged inflation.
“I’ve toiled all my life, yet I never earned enough to save adequately for retirement,” shared Rachel, a nurse in her 60s from Philadelphia.
“The stock market terrifies me, but it’s my only chance for a comfortable retirement. If I withdraw now, what’s left of my funds might be ‘safe,’ but there isn’t enough to last throughout my lifetime, so I must gamble and stay invested.”
Conversely, others have reached different conclusions in recent months. Christopher Gallivan, 75, a retired engineer from New Hampshire, felt he couldn’t allow his retirement funds to be at risk from a worldwide market collapse brought on by tariffs and geopolitical tensions.
“I typically invest a significant portion of my IRA in stocks,” he noted. “However, when market instability emerged around six to eight weeks ago, I sold all my stocks and opted for CDs [certificates of deposit]. While the returns are lower, at 4.5%, I’m not incurring any losses either.
“At my age, I need to safeguard my nest egg, and I believe the best approach is to go self-directed. I lack the time to wait for the market to recover. Inflation is an undeniable reality.”
Many respondents are considering abandoning investments in stocks, shares, and bonds in favor of purchasing an annuity for added security.
Numerous individuals in their 50s and 60s who had been preparing for imminent retirement reported that recent uncertainties have prompted them to delay their plans, while those in physically demanding roles fear they may not be able to continue working as long as necessary. Many retirees are now contemplating returning to the workforce.
Unsurprisingly, those who have been retired for an extended period, typically in their 70s and 80s, expressed the most alarm, as returning to work isn’t feasible for them.
“Whenever a politician seeks to make a point, my pension pot suffers,” lamented Andrew Gale, a 74-year-old retired electronics engineer from Ruthin, Wales. “Liz Truss cost me 25% of my portfolio: who knows how much the erratic Trump will cost me?”
Many retirees or those nearing retirement indicated they simply do not have the luxury of time to wait for their portfolios to regain value and will need to withdraw from their diminished pensions even if it means realizing theoretical “paper losses.”
Colin, a 63-year-old university lecturer from Bradford in the UK, feels individuals like him should have received warnings to take action before their pensions were devastated.
“I didn’t possess a substantial pension, and due to Donald Trump’s policies, its value has fallen by 9% since mid-February,” he criticized. “I had intended to retire in August, but now I’ll likely have to keep working. It’s genuinely disheartening when you’re eager to complete your career but can’t.
“What frustrates me is how financial advisors overlook short-term risks to pension investments. They keep chanting that ‘time in the market’ yields better returns than trying to ‘time’ the market. However, if there’s an unstoppable train heading your way, it makes sense to step aside until it passes.”
His financial advisor had invested £50,000 in mid-February into funds that have since dramatically decreased in value. “It’s a system that feels laden with dangers for average folks.”
Charlie, 59, a tech professional from North Carolina, echoed that the universal advice to maintain investments and purchase dips is particularly risky for older individuals.
On the other hand, he felt compelled to adhere to the guidance of fund managers and financial advisors.
“My partner and I deliberated whether to pull our funds when Trump was elected,” Charlie shared. “Ultimately, we decided against it. People often try to time the market and end up losing out, and I want to avoid being in that group.”
He noted that the recent tariff pause turned a 13% decline into growth, adding: “What will happen in 90 days? I have to trust that those managing my money know their craft.”
