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 the Conservatives won a firm majority in the general election, the UK is about to ‘get Brexit done’ and is on the verge of leaving the European Union. The UK will leave with a withdrawal deal on 31 January 2020. There’ll be 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.
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.
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.
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.
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.