Your pension is likely invested in some of the largest companies in the world - including Meta, a key player in the social media and tech sectors. Current geopolitical events are influencing Meta’s performance, which in turn affects your pension. Let’s take a look at why this is.
How does Meta’s performance affect my pension?
Shares represent a unit of ownership in a company. When you buy shares, you become a part owner of that company, and your ownership is proportional to the number of shares you hold.
The value of a share is worked out by taking the company’s value and dividing it by the number of shares in issue. This then forms the individual share price. It’s this share price that goes up and down in value over time. The price can move according to current market conditions, historic performance and potential growth opportunities.
If you were to look at your own pension closely, you’ll see that you probably own a small percentage of many of the world’s largest and most successful companies. The top holdings in your pension refer to the companies you have the largest investment in. For most pension savers, Meta will likely be one of the top 10 holdings in your pension fund.
What is Meta?
Meta (formerly Facebook), was founded in 2004 by Mark Zuckerberg, along with his college roommates. Initially launched as a social networking site for college students, it quickly expanded, transforming the way people connect and communicate online. Meta now owns and operates Facebook, Instagram and Whatsapp among other products and services.
Today, Meta is the sixth largest company in the world with a market capitalisation (total value) of over $1.3 trillion. ‘Market capitalisation’ is calculated using the present share price multiplied by the total number of shares.
Meta is also one of the seven leading technology companies in the US (also known as the ‘Magnificent Seven‘) recognised for their innovation and strong performance.
How much of a typical UK pension is invested in Meta?
Pensions typically put a large portion of your funds into company shares (equities) through the stock market. This strategy aims to grow your wealth over the long term, as company shares are typically one of the best performing asset types.
As Meta is currently one of the largest companies in the world, it’s a common holding in many investments.
While the exact percentage of Meta in a typical UK pension fund varies, Meta makes up around 2% of the MSCI World Index, a widely followed global stock market index which tracks the performance of many established companies across 23 developed countries worldwide.
As such Meta can represent a small percentage of the typical UK pension plan. Current geopolitical events are influencing Meta’s share price performance, which in turn could affect your pension balance.
How is Meta affected by President Trump’s tariffs in 2025?
The return of US President Donald Trump has brought renewed attention on tariffs - which are taxes on imported goods. His administration has escalated the trade war with China, announcing a steep 145% tariff on Chinese-made products.
Fortunately, the US later exempted smartphones, computers, and certain other electronic devices from ‘reciprocal tariffs’ - although these exemptions could be temporary.
While these tariffs have mainly targeted manufacturing, there have been some side effects on Meta’s advertising business. The tariffs have made it more expensive for international advertisers to sell their products in the US.
In particular, Chinese advertisers, who have been impacted, make up roughly $10 billion of Meta’s revenue. This increase in costs could lead to reduced advertising budgets, which would have a knock on effect to Meta’s revenue.
In the table below you can see how short-term uncertainty from US tariffs have shaken the value of Meta shares. However, the long-term trajectory shows strong growth.
| Company | 3-month performance | 1-year performance | 5-year performance |
|---|---|---|---|
| Meta | -2% | +19% | +246% |
Source: Market Watch. Data as of 31 March 2025.
While Meta isn’t directly involved in manufacturing or trade, the tariffs have created ripple effects across the global economy. These tariffs are part of Trump’s broader strategy designed to reduce the trade deficit and boost domestic manufacturing.
What could make the Meta share price go up and positively impact your pension balance?
Over the next three months, the share price could rise if:
Meta exceeds expectations in its next quarterly earnings report (this looks at the profits and losses for the prior three months). This could lead to a short-term spike in the share price;
Meta continues to cut costs and as a result, excite investors; and/or
the Federal Reserve, the Central Bank in the US, decreases interest rates. This could encourage advertising businesses to borrow at a lower interest rate and therefore increase their budgets and ability to spend.
Over the next year, the share price could rise if:
Meta continues to see strong growth in advertising revenue through its core platforms Facebook, Instagram and Whatsapp; and or
Meta makes progress in artificial intelligence (AI) tools and platforms, attracting more investors.
Over the next five years, the share price could rise if:
Meta makes breakthrough innovations in virtual reality (VR) and augmented reality (AR) through its Reality Labs arm of the business, attracting more investors;
internet and smartphone usage increases in emerging markets and Meta expands their global user base; and/or
strong cash flow means Meta can buy back its own shares and pay dividends, which could help its stock price go up over time.
What could make the Meta share price go down and negatively impact your pension balance?
Over the next three months, the share price could fall if:
Meta misses revenue or profit targets in its quarterly earnings report. This could lead to a ‘short-term sell-off’, as investors react quickly by selling their shares, leading to a short-term decline in the share price; and/or
Meta are hit with fines following antitrust and data privacy investigations; and/or
tariffs from the US continue to disrupt Chinese advertising businesses harming Meta’s revenue.
Over the next year, the share price could fall if:
Meta fails to innovate within the VR and AR space which impacts its revenue;
its advertising revenue across Facebook, Whatsapp and Instagram continues to decline; and/or
rising interest rates or fears of a global economic slowdown negatively affect tech stocks.
Over the next five years, the share price could fall if:
regulations on tech companies continue to intensify. This could restrict Meta’s business practises and reduce profitability;
Meta’s reputation is damaged following antitrust and data privacy investigations which could lead to a decline in users and interest from investors; and/or
there’s increased competition in AI with tools and platforms from Apple, Google or Microsoft outperforming Meta.
Conclusion
Your pension likely has a small investment in Meta - most pensions invest a portion of your retirement money in Meta because it’s one of the largest and most successful companies in the world.
When you invest, you own a portion of the company - the value of these company shares will go up and down based on market conditions, affecting the value of your pension on a given day.
Current events can impact your investments - geopolitical events, such as tariffs from the Trump Administration, can affect Meta’s costs and share price. This in turn impacts your pension balance.
Politics is short-term and investing is long-term - while current events can cause short-term volatility in share prices, successful investing typically focuses on long-term growth.
Staying informed about current events, and their impact on your pension, can help you invest with confidence - even in a changing market.
Have a question? Get in touch!
Do you want to know more about your pension plan with PensionBee? You can check out our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
