Pension investors should remain calm despite market turbulence caused by US President, Donald Trump's tariffs, Hargreaves Lansdown head of retirement analysis, Helen Morrissey, has said.

Trump announced yesterday (2 April 2025) ​a 10 per cent tariff on all UK imports to the US tariffs, with higher "reciprocal" tariffs for the countries branded the "worst offenders".

However, Morrissey emphasised that pensions are a long-term game, warning that making “knee jerk reactions”, such as changing investment strategy or cutting back on contributions, can crystallise losses and make it harder for funds to recover.

"It’s important to make sure that your strategy is well diversified to protect your pension from these ups and downs," she said.

Morrissey also encouraged investors to keep contributions regular, suggesting that some investors could benefit from market downturns by being able to buy more units when prices are low.

Fidelity International also urged investors to “stay focused” on the long-term ahead of this volatility, with its research revealing that 33 per cent of investors said market fluctuations do not affect their behaviour, and that they remain committed to their long-term strategy regardless of short-term market movements.

Almost a quarter (23 per cent) said they would seek advice from a financial adviser during periods of volatility, suggesting a preference for professional support rather than reacting impulsively.

Meanwhile, 20 per cent of investors said they might consider selling in response to market shifts but would typically wait to see how events unfold before taking any action, while 19 per cent said they actively look for opportunities to invest in different sectors or regions when uncertainty rises, using volatility as a chance to diversify or reposition their portfolio.

Around one in six (16 per cent) investors said they tend to reduce their exposure to volatile markets gradually over time, reflecting a more cautious and measured approach to risk management.

Fidelity International investment director, Tom Stevenson, said: “These developments are a timely reminder of the value of diversification and long-term discipline.

“Volatility is the price investors pay for higher returns over time, but it’s not the same as risk. By holding a mix of assets, maintaining a cash buffer, and continuing to invest regularly, investors can navigate short-term uncertainty while keeping their long-term objectives firmly in sight.”

However, the volatility could impact savers' behaviour, as Morrissey suggested that those coming up to to retirement may choose to put off taking an income from their pension through drawdown until the situation is more settled.

“We could also see more people opt to go for a guaranteed income through an annuity," she said.

Indeed, Morrissey said that annuities are offering good value right now and are the highest since unisex annuity rates were introduced in 2012.

“With the potential for interest rates cuts in the coming months and the impact on long-term gilt yields uncertain we could see more people take the plunge now,” she stated.

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