Has Brexit effected my pension?
A referendum - a vote in which everyone (or nearly everyone) of voting age took place on Thursday 23 June, to decide whether the UK should leave or remain in the European Union. Leave won by 52% to 48%.
But how has this result effected your pensions and investments?
Opinion is mixed
Effects on pensions and investments post Brexit are uncertain, as only time will tell.
“UK pensions at risk like never before”
There are concerns over a cooling property market and the banking sectors, with companies across many different industries. If you have any questions about your investments please give us a call.
Time is a factor
With the uncertainty in the market only time will give us a more accurate indication of the effects Brexit has had on pensions and investments.
The aftershocks of Britain's decision to leave the European Union have hit the property sector since the referendum result to exit the EU, with a foreign bank freezing loans for buyers and some investors pulling out of commercial deals.
Theresa May taking over as PM on Wednesday 13th has added some certainty and stability back into the market and it is viewed by many as a good thing.
“Theresa May's virtual 'coronation' as prime minister has delivered a boost to the pound as the clouds of uncertainty following the Brexit vote start to disperse”
Neil Wilson, markets analyst at ETX Capital.
May promises to make Brexit 'a success'
For many still saving into a pension, the biggest threat from Brexit is still a period of financial instability.
It's more important than ever to make sure investments are properly diversified in order to mitigate the increasing threats retirement funds.
Investment diversification is crucial to a solid portfolio. It is a basic principle behind asset allocation.
Diversification simply put: “Don't put all of your eggs in one basket”.
And provided you are taking a long-term view with your investment strategy, you should not be adversely affected in the long run if you don't panic.
If you have any concerns about your pension(s) or investments please give us a call.
The key message for retirees is to stay calm and avoid taking any unnecessary risks