Taxes on goods imported from 60 countries he described as the “worst offenders” took effect on 9 April.
His surprise decision brought relief for battered stock markets, even as he ratcheted up a trade war with China – raising tariffs on Chinese products to 125 per cent.
We spoke to the experts to find out what impact it could have on your retirement fund – and what you should do.
But every year, under the triple lock, the state pension goes up by the highest out of inflation, average earnings growth, or 2.5 per cent – so if the stock-market slide hits average earnings or inflation, it could influence next April’s increase in the state pension.
What about defined benefit (DB) pensions?
Those with DB pensions – also known as final salary pensions – will also be largely unaffected by the changes in the stock market.
DC pensions are the most common type, where pensioners save a portion of their salary every month into a pot which is invested for their retirement. When the stock market dips, the value of their pension can go down.
He explained: “Pension pots, which are often heavily invested in equities and bonds, remain exposed to global market movements, and further swings in sentiment are highly possible.
Annuity rates may also take a hit
Annuity rates, which are tied closely to long-term gilt yields, may also face downward pressure if rate cuts are used to cushion the economic impact of tariffs, Futcher said.
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Any cuts would be a boost for the Government’s promise to raise living standards, which has been under threat due to the recent economic turmoil.
But some economists are now arguing that rates should be slashed by double the amount next month to limit damage to the economy.
Futcher said: “For those considering converting pension savings into a guaranteed income, timing will be key.
Although it may be tempting, Gary Smith, financial planning partner and retirement specialist at Evelyn Partners, said now is not the time for pension savers to be changing their investment strategy by switching or selling funds.
“Pensions are a long-term saving and investment project, which does need revising gradually as the years go by, for instance to take some risk off the table as you approach the point where you might need to start accessing your savings.
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Read MoreSir Steve Webb, former pensions minister and partner at LCP, pointed out that trying to “time the markets” can be extremely challenging, even for expert investors.
“This is a reminder of the virtues of investing for the long-term and of diversifying across a range of assets and markets, and of the risks of knee-jerk reactions to short-term market swings”.
“Just as the dips in value of funds off the back of the tariff announcement didn’t spell retirement disaster for the vast majority, the bounce back we have seen as a result of the tariff pause doesn’t amount to pensions ecstasy.
“Pension savers are usually looking to get returns over decades, so fluctuations over the space of a week can normally be ridden out without any fuss.”
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