Millions of UK pension savers urged to 'review their portfolios' this week

Millions of UK pension savers urged to 'review their portfolios' this week
-Credit:Reach Publishing Services Limited


Millions UK pension savers could be at risk from a US tech sector decline. DeepSeek has quickly become the most downloaded free app in the UK and the US - as the new low-cost AI wiped $1tn off the leading US tech stock index this week and it rapidly became the most downloaded free app in the UK and the US.

Nigel Green, CEO of the financial advisory and asset management company deVere Group, warned: “The sharp declines in the S&P 500 and other tech-heavy indices present a significant challenge for UK pension funds, many of which have considerable exposure to US equities - particularly in the tech sector.”

Mr Green said: “The sector has long been a key driver of returns, with pension funds benefiting from the dominance of US giants such as Apple, Alphabet, and Microsoft. However, with mounting pressure from new competitors like DeepSeek and broader market uncertainty, these stocks are now facing volatility that could impact long-term pension growth.”

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Mr Green said: "UK pension funds are deeply integrated into global markets, and a sustained sell-off in US tech could erode the value of pension investments, potentially leading to lower returns for millions of savers.” Simon Heath, partner at UK investment firm Heligan Group, said: “Despite the recent pricing correction in US technology stocks, they continue to feel overvalued, priced off future growth rather than current cash conversion.

“Could DeepSeek’s impact on the AI sector have wider implications on technology pricing? Yes, there is likely to be further pricing correction across the wider technology sector, particularly in the US.” Mr Heath urged pension savers to review their portfolios.

He said: “Any pension savers that are concerned around recent events in the US stock market should speak with their pension provider or IFA to understand how exposed they are to the technology sector and evaluate their risk profile to this sector given the bull market can’t last forever.”