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How will Brexit affect my pension savings?

Brexit isn’t likely to significantly affect UK-based occupational pension schemes like The People’s Pension. This is because UK-based occupational schemes are mainly run according to legislation made by the UK Parliament and regulated by agencies of the UK government. Brexit may, though, be a cause of economic uncertainty and movements in financial markets that may affect pension schemes like The People’s Pension.

After nearly four years of political stalemate, the UK left the European Union on 31 January 2020 with a withdrawal deal. There’s a transitional period, during which the UK will observe many of the EU’s rules, that’s scheduled to end on 31 December 2020. The UK government intends to agree a trade deal during this time with the remaining 27-member states. It’s possible that the UK will exit the transition period without a trade deal, but we believe this isn’t likely to be as disruptive as leaving with no withdrawal agreement in place.

Events like Brexit will influence financial markets and therefore the value of the assets held by The People’s Pension. All financial assets carry some degree of risk, and at The People’s Pension we’ve invested in a diverse portfolio of assets. We invest across the world on behalf of our members, not just in the UK. This should limit the impact of events like Brexit on our members’ pension savings.

Your pension pot is held under trust in a separate legal entity and this keeps your money secure.  For more information on how your savings are protected see security of your savings.

We’ll be monitoring the situation as it develops and will base our decisions on research and evidence, as we aim to meet our members’ long-term investment objectives.

You can monitor how the investment fund(s) your pension pot is invested in are performing or check our daily unit prices.

If you’re planning to access your pension savings in the near future, you should take extra care. Choosing what to do with your pension savings is an important decision – consider getting some guidance or advice. Visit Pension Wise, a free and impartial government service, for online, face-to-face or telephone guidance. You can also speak to an adviser. If you don’t already have an adviser, you can find one on the Unbiased website. Please note an adviser may charge for their advice.

We’ve teamed up with LV= to provide our members with access to personalised, regulated financial advice.

Please note LV=’s telephone advice service is a paid-for service. They’ll explain to you the cost of this service before offering you advice.

What is master trust authorisation?

Master trust authorisation is overseen by The Pensions Regulator. It will help ensure that master trust pension schemes (like The People’s Pension) continue to run in the best interests of their members. To become authorised, master trusts needed to show that their scheme met the 5 criteria laid out in legislation:

  1. demonstrating the people running their scheme were fit and proper
  2. the master trust was financially sustainable
  3. the funder of the scheme could support it
  4. the master trust had adequate systems and processes in place
  5. a continuity strategy had been prepared.

We lobbied and supported the government’s decision to introduce an authorisation process for all master trusts operating in the UK pensions market. And in August 2019, The People’s Pension was granted master trust authorisation from The Pensions Regulator.

We firmly believe this is an effective way to help ensure that all master trusts are properly run and well governed.

 

How does The People’s Pension protect me from pension scams?

At The People’s Pension, we do our best to make our members aware of pension scams.

Pension scams can come in different forms from scams to trick you into transferring your pension savings into fake schemes, to phishing to get hold of your personal details.

Below are examples of pension scam tactics that could alert you that you may be dealing with a fraudster:

  • Contacting you out of the blue
  • Offering free pension reviews and one-off investment opportunities with ‘guaranteed returns’
  • Offering you cash upfront
  • Offering a quick transfer of money over to the new scheme
  • Claiming you can access your pension pot before the age of 55 (57 from 2028)
  • Providing no documents to confirm the business you’re transacting

It’s good to note that a professional looking website and convincing marketing material doesn’t necessarily mean you’re not dealing with a fraudster.

Fraudsters may try to get your details by email, letters through the post, instant or text messages and cold calls.

Ban on cold calls: To help prevent pension savers falling victim to pension scams, the government have passed a ‘pensions cold-calling ban’ to ensure any company who attempts to make unsolicited calls about your pension could be fined.

We support the government in helping savers avoid pension scams, by making you aware of pension scams in our communications and pointing you in the direction of further help from government-backed bodies.

Who to contact if you’re worried about pension scams

You can ask Citizens Advice, the Single Financial Guidance Body or the police for help and advice about scammers.

If you’ve already been approached and signed a contract, contact your provider immediately and call Action Fraud on 0300 123 2040.

You can discover more on how to avoid pension scams on our website.

Or you can also find more about how to protect yourself from pension scams on The Pensions Regulator’s website.

Do you offer death-in-service cover?

We offer the Employer Life Cover (ELC) scheme – please note this is only available to construction employers.

ELC provides a tax-free lump sum to a member’s beneficiaries if they die for any reason whilst employed by you. For more information, give us a call on 01293 586666.

What’s The People’s Pension?

The People’s Pension is a multi-employer, defined contribution occupational pension scheme that has master trust status.  It’s run by B&CE, a not-for-profit organisation. With no shareholders, any surpluses made by B&CE are used for the benefit of members. The People’s Pension has more than 4 million members, making it the UK’s largest private sector auto-enrolment pension scheme.

The People’s Pension offers the complete pension package to meet the unique needs of any organisation, large or small, in any sector. Hear why Debra Hayes, Group Pensions Director at Rentokil chose us and her great experience of our support:

Find out more about why you should choose us

Who is B&CE?

  • We’ve been providing simple financial products for over 75 years
  • We have a strong track record of providing pensions – over 30 years and counting
  • We created The People’s Pension – which has a Defaqto 5 Star Rating for auto-enrolment
  • We’re not-for-profit – always have been, always will be
  • We set up our Charitable Trust to help construction industry workers in need – it’s paid out over £3.5 million so far
  • We manage assets of £9.17 billion for 4.98 million members (as of 30 April 2020)
  • We have 94,000 employer clients – with thousands more joining us every year (as of 30 April 2020)