How will Brexit affect my pension savings?

The UK’s decision to leave the European Union is still in the process of being finalised, so it’s currently unclear what this will mean for the UK and pensions in the long run.

The People’s Pension is a defined contribution occupational pension scheme. The law governing schemes such as this is largely domestic, UK law, except for certain European Union directives that have been transposed into UK law. Because of this, Brexit doesn’t affect the way UK occupational pensions are run.

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.

The final terms on which the UK will leave the European Union are still unknown as are the implications of any final arrangement (where reached) and its long-term impact on asset prices globally and in the UK. Financial markets do not like uncertainty, so the lack of clarity surrounding Brexit has caused volatility in financial markets and is likely to do so up to, and potentially beyond, any final decision. This means that the market may see ups and downs in the value of investments.

All financial assets carry some degree of risk, and at The People’s Pension we’ve invested in a diverse portfolio of assets with the aim of dampening portfolio volatility that geopolitical events like Brexit bring. These portfolios are international in nature and not linked solely to the UK.

We’ll be monitoring the situation as it develops and will base our decisions on research and evidence so we can 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 on our website.

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 also teamed up with retirement specialist LV= to offer an online retirement planning tool. You can get a free overview of your options using the LV= retirement income calculator.

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