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Trump tariffs – market volatility

08 Apr 2025

From the Trustee of the:

United Utilities Pension Scheme (UUPS)

United Utilities PLC Group of the Electricity Supply Pension Scheme (UUESPS)

President Trump announced last week the next round of tariffs as part of the economic agenda. As the impact of the tariffs are felt across the world, we want to reassure members that looking after your pension is our top priority.

The introduction of the new tariffs has been an important contributor to the recent volatility in global markets. Markets tend to react to uncertainty so it’s likely that global markets will be impacted further.

We’ve tried not to be too technical (we know pensions can seem complicated) but hope that that members who read this update feel more informed and reassured.

How does it affect my Defined Contribution (DC)/DC top up/Additional Voluntary Contribution (AVC) pot?

In a DC scheme the value of your pension depends on how much is paid in, and how well the scheme's investments perform over the long-term.

It’s important to remember that DC pensions are long-term investments. It’s very normal for the value of investments to go up and down. Although not guaranteed, the hope and expectation is that values generally go up over the longer-term, despite this volatility. You can check the value of your DC/AVC funds at any time, by logging in to TargetPlan.

If you are close to retirement and already planning to access your DC/AVC pot we would recommend you review your current plans and contact the scheme administrator, Aegon, or your financial adviser. If you don’t have a financial adviser you can find one at unbiased.co.uk

How does it affect my Defined Benefit (DB) pension?

As UUPS and UUESPS are defined benefit schemes, the DB pension being built up or the value of regular pensions currently being paid out to pensioners is not determined by the ups and downs of the stock market. This means that any turbulence to financial markets caused by the current situation will not affect the benefits to be paid out or the regular pensions that are currently being paid out to members.

Both Schemes are currently well funded with a low risk investment strategy which are protected against changes in inflation and interest rates so the schemes are in a good position to deal with any  turbulence in the markets.  The Trustees are working with their advisers to continue to monitor the situation.

This update is provided for information only and does not constitute financial advice. If you need advice, you should contact a regulated financial adviser.