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How will the EU Referendum Affect my Pension?

As a member of the Defined Contribution (DC) section of the pension scheme, we recognise you may want to understand how the UK’s decision to exit the EU has affected your future pension benefits.

It’s important to remember that pensions are a long-term investment and most members invest their pensions savings in Lifestyle strategies, designed to gradually lower the amount of investment risk as retirement approaches.

Depending on which part of your savings journey you are in, it’s worth bearing in mind the following points:

  • If your retirement is not imminent there is still time for markets to recover, if indeed they have fallen. There may be plenty more bumps along the way, but it’s good to know that there is a potential positive side to any market dip; you may gain in the future because your regular contributions will be invested into markets cheaply.
  • If you are approaching retirement in the next few years and you are invested in a Lifestyle strategy (like the majority of our members), your savings will be in lower risk assets compared to those members in their early years of saving. 
  • If your retirement is imminent (e.g. in the coming weeks or months) it is important to remember that any loss from a fall in the value of your investments is only incurred if you draw your benefits. Decisions on switching and transferring investments, or retiring should be taken carefully when markets are significantly volatile, as they are at the moment.
  • As always, should you decide to review your pension arrangements we suggest you contact an Independent Financial Adviser. You can find one at www.unbiased.co.uk
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