Trump’s Election Victory Boosts UK Pension Savers, Says Smart Pension CEO

British pension savers are set to benefit from Donald Trump’s election victory, as the former US president’s pro-business policies have led to a surge in stock markets, particularly in the United States, according to Andrew Evans, CEO of Smart Pension, a leading UK retirement business.

Evans highlighted that the rise in US market performance has positively impacted UK pensions, particularly those with investments in American assets. “American markets have been incredibly bullish since Trump’s victory, benefiting UK pension savers with funds tied to US assets, whether they realise it or not,” he said.

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

Despite concerns over Trump’s trade policies and the potential for disruption in global markets, investors remain optimistic about his promises of corporate tax cuts and a pro-growth agenda. Evans noted, “Trump’s policies promoting American growth and company assets will benefit global pension funds.”

In the UK, Chancellor Rachel Reeves has proposed significant changes to workplace pensions, advocating for the pooling of smaller pension pots into “megafunds” worth £80 billion. These larger funds would be able to invest in a wider range of assets, which could drive greater growth and returns for savers.

Evans expressed support for this initiative, noting it aligns with Smart Pension’s mission to modernize and transform retirement savings. The company currently allocates 6% of its master fund to private markets, with plans to increase this investment moving forward.

However, Evans called for additional government incentives to stimulate domestic growth, particularly in light of Chancellor Reeves’ £41.5 billion in tax hikes announced 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.

As both the US and UK economies navigate these changes, the actions of both governments are expected to shape the future of pension savings and investments.