Pensions - Articles - What a Brexit no deal may mean for your pension


With the deadline for Britain’s exit from the EU looming and no plan in place, there is still a chance the UK could leave with no deal. Stuart Price, Partner and Actuary at Quantum Advisory, looks at how a no deal scenario could affect UK pensions.

 There’s no doubt a no deal is going to cause disruption, it’s just a question of how much disruption and how long it will last.

 Much of the money we pay into our pensions is invested as shares in UK companies. When the companies do well, our retirement pot grows. If, come 29 March, there was no agreed deal, global investors may be fearful about investing in UK companies. Shares in those companies could then fall and in turn your pension fund would decrease in value. If you are lucky enough to have a defined benefit pension, then a fall in investments would not impact what you receive. However, most of us have defined contribution arrangements that would be impacted.

 As worrying as this might sound, pensions are long term investments, so unless you are about to retire soon from a defined contribution arrangement, then there is time for things to improve. In addition, the majority of UK pension funds are invested globally and across a large number of different asset classes so that should also dampen down any falls.

 Ultimately, prosperous pensions require a strong investment performance which can only be achieved with strong economies – here in the UK, across Europe and globally.

 It’s unclear how Brexit will affect the UK’s economy, so for now, unfortunately all we can do is wait and watch.
   

Back to Index


Similar News to this Story

Willis Towers Watson and LCP on DWP GMP Conversion Guide
Willis Towers Watson and LCP respond to the DWP guide to GMP conversion
Barnett Waddingham and ARC Pension Law on DWP GMP Guide
Barnett Waddingham and ARC Pensions Law respond to the DWP GMP Conversion Guide
New research shows women at risk of financial meltdown
New research by mutual insurer Royal London has found large numbers of women across the age spectrum would be at risk of ‘financial meltdown’ in the e

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.