How Brexit may affect pensions long term is still uncertain, however for now its paramount you check both your pensions’ performance to explore possibilities and solutions elsewhere.
The Bank of England resisted cutting interest rates hoping to stabilise a slowdown in the UK economy after the vote to leave the EU. A possible recession as dictated by remain campaigners has yet to show though this is still early days.
Whether or not we do enter a phase of recession it’s certainly not as doom & gloom as expected and widely anticipated though a decline in confidence and uncertainty has delayed some investment in the UK.
The rate setters at the Banks affect pretty much affect all financial products, mortgages, and interest rates included. However, low interest rates is not good for retirees who need a hard earned income from their pension fund.
The cash in your account remains very low interest which has a knock on effect on assets from investors willing to pay higher prices for incomes on offer. For this reason there’s no better time to see if your pension can be safeguarded to enable the income you desire in retirement.
Many people plan for their own & their families futures by putting safeguards in place such as life assurance and wills, that said pensions seems to be the one thing that could be the most important and least looked at financial product in people’s lives. There seems to be a rationale of it’s being looked after by someone when in most cases that cannot be further from the truth.
Not only should a review be paramount but regular yearly reviews thereafter are as important to keep you up to date with finances you will draw down on when you hang up your working shoes.
Do you know your pensions performance?
You need to be confident that your pension will give you the income you need to maintain your lifestyle in your retirement. Many people are unaware of how their money is invested or of the many hidden charges which could be decreasing your pension investment. Significant improvements could be achieved with a pension review from a regulated independent financial advisor. With new rules brought about by the government in 2015 regards pension drawdown and Brexit affecting stocks and shares a review of your fund may be the difference in a happy or troublesome retirement. You may not know the value of your pension, the fee’s you pay to your current provider, where or how your money is being invested, how those investments are performing & most importantly whether it will support your lifestyle in retirement.
If you’re still reading then what now?
What’s to lose? A free review at the very least will give you an indication of how your fund is performing. Usually distinguished on a Red, Amber & Green performance level Red being your fund is performing badly, Amber it could be doing better and Green your fund is good where it is, would you not like to know what colour your future is? Visit www.equitaspensions.co.uk for additional information.