In early April, U.S. President Donald Trump announced a wave of tariffs at nearly every country in the world – reigniting trade tensions and shaking global markets. While headlines focus on geopolitics and global supply chains, Irish pension holders could quietly face another kind of impact: declining fund values and increased volatility. So, what’s happening – and how will Trump’s tariffs affect Ireland in terms of your pension?
Markets react – and so does your pension
Markets have been on edge since the tariffs were announced, with many people wondering will Trump tarriffs affect Ireland, leading to some investors pulling back in anticipation of slower global growth. For Irish pension holders, that uncertainty has shown up in the value of some managed pension funds. In fact, most managed funds in Ireland, which include a mix of equities, bonds and other assets, are down between 5% and 8% this year. This drop has understandably unsettled some pension holders, with reports of investors considering moving funds into cash in reaction to the volatility. But experts advise that historically, taking investment money “off the table” may be unwise.
The long game still matters
It’s important to zoom out. Over the past five years, the average managed pension fund has done very well – despite intermittent dips along the way. Looking at a long-term investment chart, market “shocks” often appear as minor ripples in an overall upward trend. For those in their early or mid-career, the usual message applies: stay the course. While equities may be volatile in the short term, they still tend to offer the best opportunity for long-term growth.
What if you’re nearing retirement?
If you’re approaching retirement, your pension will likely have already been de-risked — meaning more of your fund is allocated to lower-volatility assets like bonds or cash. This helps cushion against shocks like the current one.
And remember: retirement isn’t necessarily the end of your pension journey. Many individuals now move their funds into an Approved Retirement Fund (ARF) rather than drawing it all down at retirement age, giving them more flexibility around when and how they access their money.
What should you do now?
• Don’t panic. Market dips are unsettling, but reacting emotionally can lock in losses.
• Speak to your advisor about how your fund is invested and whether it aligns with your retirement date and your tolerance for risk.
• Focus on the long term. Despite political noise and economic cycles, although not guaranteed, long-term investing has historically rewarded patience.
Need Guidance?
At LHK Group, we help clients navigate market uncertainty with confidence. Whether you’re just getting started with your pension or approaching retirement, our team is here to ensure your investment strategy stays on track — no matter what global headlines are doing.
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🌐 https://www.lhkgroup.ie/financial-planning/
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