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

 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.