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British pension savers are set to benefit from Donald Trump’s election victory as the former US president’s pro-business stance boosts stock markets, especially in the United States.
Andrew Evans, group director of Smart Pension, a leading UK pension company, highlighted the positive impact of rising US markets on UK pensions with investments in US assets.
Evans said: “US markets have been incredibly bullish since Trump’s victory, which has favored UK pension savers with funds linked to US assets, whether they realize it or not.”
Smart Pension, which manages retirement savings for 1.4 million people, has 52% of its main fund invested in the US. After Trump’s election, the S&P 500 rose 5% to a record high of 6,001.35 points. Although the index has since fallen slightly to 5,863.69 points, it remains 2.6% higher than its pre-election level and has risen 12.8% since August. Similarly, the Nasdaq Composite Index hit record highs and is still up 2.6% from November 4.
Despite concerns about Trump’s trade policies, which some economists warn could disrupt global markets and fuel inflation, investors remain optimistic about his promises to cut corporate taxes and his pro-growth agenda. Evans noted: “Trump’s policies to promote US growth and corporate assets will benefit global pension funds.”
Rachel Reeves calls for pension reform in Britain
Meanwhile, in Britain, Chancellor Rachel Reeves has proposed a sweeping reform of workplace pensions, with the aim of bundling smaller pots into ‘mega funds’ worth £80 billion. These larger funds are expected to have the capacity to invest in a wider range of assets, which will drive growth and returns for savers.
Evans welcomed the initiative, which aligns with Smart Pension’s mission to transform retirement savings. The firm currently allocates 6% of its master fund to private markets and plans to increase this investment.
However, Evans called for further government stimulus to boost domestic growth, especially in light of the Chancellor’s £41.5 billion tax increases outlined in the Budget. “Promoting growth while imposing significant tax increases is a challenging balance. Additional structural measures are needed to support investment in Britain,” he said.