The FTSE, a stock market index of the 100 biggest UK companies, fell at the end of last week, and dropped another 5 per cent on Monday morning.
The bad news comes after the US President said he will not back down on his sweeping tariffs unless countries even out their trade with the US.
square TARIFF The key questions on Trump's tariffs - answered in under five minutes
Read More
A 25 per cent tariff is now applied to foreign cars imported into the US, while other products from the UK face a 10 per cent levy.
Here’s what the changes mean for your savings and pension.
When you open a cash savings account, you are paid an interest rate.
Other accounts offer interest that can drop or go up – these are generally known as easy-access accounts.
If the provider you are saving with has this, the FSCS protects 100 per cent of the first £85,000 you have saved, per UK-regulated financial institution, even in the exceptionally unlikely event the provider goes bust.
Money in a stocks and shares ISA or investment account? You may be losing money
At the moment, many investors with money in stocks and shares will be finding the value of their investments is dropping.
However, experts have warned that withdrawing your money can be a bad idea in these circumstances.
“History shows that markets often experience sharp pullbacks and then bounce back. While we don’t know when a recovery will happen, staying invested throughout has often proved to be the best strategy.”
State pensions are unaffected by the change. Pensioners currently get £230.25 per week if they get the full new state pension and this will continue regardless of the stock market issues.
Some pensioners with defined benefit (DB) pensions will also be unaffected by the changes in the stock market.
Read Next
square MONEYInvestors warned not to panic-sell as Trump tariffs lead to sharp losses
Read MoreBut most pensioner savers with money in defined contribution (DC) pensions, will be affected.
When the stock market dips, the value of their pension can go down.
Helen Morrissey of Hargreaves Lansdown said: “We will all experience periods of stock market turbulence during our pension saving journey.”
“If you are coming up to retirement then you may choose to put off taking an income from your pension until the situation is more settled,” she said.
Pensioners who have DC pots but have bough annuities – set annual incomes that can be purchased in exchange for cash – will be unaffected by the stock market slide, but if the tariffs send inflation in the UK higher, it will damage the real-terms value of their savings, unless they have bought an annuity which protects against inflation.
Hence then, the article about how trump tanked global stock markets and what it means for your savings and pension was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( How Trump tanked global stock markets – and what it means for your savings and pension )
Also on site :