Pensions update as millions urged to make impactful change

Millions of savers are being urged to take action as market turbulence causes significant dents in retirement pots - some . Financial experts are warning that one of the most impactful changes many can make isn't just in their strategy but in how much they spend.

Hannah Williford of said: "Before making investment changes, you may want to consider personal changes to avoid outspending your retirement savings. Cutting back on costs can reduce the withdrawals needed from your pension during a downturn." Suggestions include everyday adjustments like swapping a premium grocery store for a budget store or rethinking travel plans - for example, choosing a staycation over a costly overseas holiday.

The call comes after global markets were shaken last week following the announcement of new US tariffs by President Donald Trump. The resulting downturn has had a ripple effect on pensions, with some savers experiencing substantial hits to their retirement fund values.

Ms Williford said that now is also a good time to assess your overall financial position.

Review how far into retirement you are, what you're currently spending, and whether your asset mix in cash, bonds, and equities reflects the level of risk you're comfortable with.

Ms Williford said: "While cash investments will typically be stable during market downturns, your equity and bond holdings may have taken a bit more of a ride. Bonds are typically less volatile, but recent years have shown some more extreme changes in these markets as well, so it's helpful to see where you stand and how much risk you are currently taking in your portfolio."

But ultimately, pension savers are urged not to panic during periods of volatility. Helen Morrissey, head of retirement analysis at , warned against "knee-jerk reactions".

She said: "If we take the example of the Global Financial Crisis, we saw the FTSE All Share plunge by more than 31% over the next month. Over time it did recover - one year on it was 11.1% lower, and by the time three years had passed, it was back in positive territory."

She added: "Making knee-jerk reactions can cause damage to your portfolio and make it harder to recover when things do settle down.

"Those closer to retirement can potentially look at whether to put off retirement for a while, or else take less income than initially planned to give their investments time to recover."