But savers have been encouraged not to withdraw their funds in a panic following the third straight day of major falls in the FTSE 100.
The FTSE, which measures the value of the biggest 100 firms listed on the UK stockmarket, fell by 4.4 per cent on Monday after significant declines in its value on Thursday and Friday.
Wall Street’s benchmark stock index, the S&P 500, was set to enter bear market territory on Monday after falling 20 per cent from its record high set in December. A bear market is defined as a period of sharp declines in stocks which typically reinforce selling as investors panic.
Over £6trn is thought to have been wiped off the value of global stocks since last Wednesday, when Trump unveiled large tariffs on trading partners around the world.
Mike Ambery, retirement savings director at Standard Life, said: “If you have a defined contribution pension – which are now the most common arrangement in the private sector – then the most important thing to think about is if whether you plan to make any significant withdrawals, like accessing your 25 per cent tax-free cash (lump sum) imminently.
Sir Steve Webb, a former pensions minister who is now a partner at LCP, added: “My feeling is that it’s a brave person today who thinks they have a pretty clear idea where markets will be in three months’ time. So, for example, if you delay taking your lump sum to ‘wait and see’ if the value recovers, how would you feel if instead markets fall further?
The Government is not expected to intervene directly to shore up the value of stock markets as ministers do not believe there is any systemic threat to the UK’s financial system.
Speaking at the Jaguar Land Rover factory in Solihull, West Midlands, Starmer said: “We have chosen to come here because we are going to back you to the hilt.”
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The Prime Minister announced he would relax regulations on clinical trials to encourage the UK’s life sciences sector, and further interventions are expected later this week.
Andrew Griffith, the Conservatives’ shadow Business Secretary, said in response: “‘This speech is thin gruel for families and businesses who are being punished with higher costs, more expensive cars and higher bills thanks to this Labour government’s mad rush to net zero.”
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