Trump’s Election Boosts UK Pension Savers as US Markets Surge

British pension savers stand to benefit from the election victory of Donald Trump, as his pro-business policies drive a surge in stock markets, particularly in the United States. Andrew Evans, group CEO of Smart Pension, a leading UK retirement services provider, emphasized the positive impact on UK pension funds with investments in US assets.

Evans explained, “American markets have been incredibly bullish since Trump’s victory, benefiting UK pension savers with funds tied to US assets, whether they realize it or not.”

Smart Pension, which manages the retirement savings of 1.4 million people, has 52% of its main fund invested in the US. Following Trump’s election, the S&P 500 index surged by 5% to a record high of 6,001.35 points. Although the index has since dipped slightly to 5,863.69 points, it remains 2.6% higher than its pre-election level and up 12.8% since August. The Nasdaq Composite Index also reached record highs and is still up by 2.6% from November 4.

Despite concerns over Trump’s trade policies, which some economists warn could disrupt global markets and fuel inflation, investors remain optimistic about his corporate tax cuts and pro-growth agenda. Evans pointed out that, “Trump’s policies promoting American growth and company assets will benefit global pension funds.”

Meanwhile, in the UK, Chancellor Rachel Reeves has proposed a major overhaul of workplace pensions, including the creation of “megafunds” by pooling smaller pension pots into larger funds worth £80 billion. These larger funds are expected to allow for a broader range of investments, driving growth and potentially improving returns for savers.

Evans expressed support for the initiative, which aligns with Smart Pension’s goal of transforming the retirement savings landscape. The company currently allocates 6% of its master fund to private markets and plans to increase this investment. He welcomed the reform, noting its potential to benefit pension savers in the long term.

However, Evans also called for additional government incentives to stimulate domestic growth, particularly in light of Chancellor Reeves’ £41.5 billion in tax hikes outlined in the recent Budget. “Promoting growth while imposing significant tax increases is a challenging balance. Additional structural measures are needed to support investment in the UK,” he said.

The combination of rising US markets and UK pension reforms could present new opportunities for British pension savers, with the potential for stronger growth in their retirement funds.