How much hit your pension will take once Brexit hits?

Bored of hearing about UK Pensions and Brexit?

Let’s keep it factual and on point to help you - UK pensions are in huge deficit (fact), there is no real recovery plan and Brexit lowering the pound made it a way bigger issue. The deficit (or huge loss) is talked about widely but no one surprisingly takes the message home.

I personally did a seminar in 2017, we had an audience of 80+, I asked how many people in the room checked their bank accounts this week “raise your hand” I then asked (1,2,3 and 6 months) all hands were up in the room.

I then asked the same about checking their pension value, there were only 10 people with hands up, 7 were in the process of transferring and admitted they would not have checked if not for that reason, they had not heard or bothered about the value for 7-10 year’s at all… some longer.

That is issue, it’s our money in other people’s hands, not checked, we rarely know what it’s invested in and we don’t ask, we move house and the statements still get sent to the old address and yet it’s your money… or is it?

It’s “held by a company scheme until you are 65” so it’s safe to say it’s their money until you take it and only at 65 it becomes your money, “It’s a promise not a guarantee” if the company fails so does its pension – if it fails there is nothing to take… right? So you reach 65, you haven’t bothered checking it and at 65 you get a polite sorry its not there - Here’s why it potentially won’t be there.

June 2012 the deficit reached an all-time high 312 billion - 

Between June 2012 and 2015 the deficit grew to 364 billion (this figure bounced around due to spin but it was 364 – 370) https://www.telegraph.co.uk/finance/economics/11403121/Pension-deficits-at-record-high-as-contributions-threaten-to-choke-business.html

Now… let’s consider what I like to call the Brexit effect, the pound falling to an all-time low devaluing the pensions further.

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Just shy of a trillion deficit 26^th June 2016 -https://www.independent.co.uk/news/business/news/brexit-latest-news-pensions-deficit-eu-referendum-bhs-tata-steel-a7156491.html

For the first time ever… we got a litmus test of what would happen to your pension if the pound failed and Brexit hasn’t happened yet… has it? And for the first time ever we know when the drop is expected.

The most resent failure is Carillion - The Pension Protection Fund “PPF” (a Government initiative not funded by the Government… but… wait for it, funded by the failing pensions and their money) has admitted they are heading toward a critical state and don’t think they will be effective as a life boat based on all the schemes failing and the ones expected to fail.

https://www.theguardian.com/money/2018/jan/16/after-carillion-how-many-firms-can-the-pensions-lifeboat-rescue

For the first time ever, we have a deadline to beat the Brexit effect before we see the pound risk’s loss and take pension values tumbling with it.

Isn’t it time to secure your money and ensure you are protected? Yes, it’s not the most compelling subject, but I bet losing your rights to your money is.

There is a lot more happening in the background since the 2017 budget for Expats, I am happy to offer a no obligation stress test to ensure all is in the right area for the future.