If you’ve recently come home after working in the UK or still have your pension funds tied up in a UK fund you might be feeling a little uneasy about what the Brexit means for the future of your pension.
With the media taking no prisoners and hyping speculation about what the Brexit means for our investments, living standards and even our holidays it’s little wonder that people are becoming increasingly concerned about how the Brexit might affect the pension savings they have accrued after years of toil.
In the wake of the Brexit a number of concerns are being voiced. Will growth rates be as good as we expected? If shares are down pension deposits won’t be as good as they might have been. Similarly, transferring your UK pension right now when the Stirling is down means you’ll get less for your money. If you have time on your side perhaps you might employ a “wait and see” strategy and keep a close eye on currency fluctuations.
Interestingly, speculation around the movement of financial services and investment banks from London’s financial centre to Ireland as the only remaining English speaking member of the EU may signal good news. Such movement stands to create a mini boom for Ireland and may give investors more confidence in the Irish market, meaning pensions are likely to enjoy greater stability if they are maintained in Ireland.
Unfortunately there is no crystal ball, horoscope or John Edwards that can tell us what the future holds or ultimately what impact the Brexit will have on people living in Ireland with a UK pension. History tells us however that panic achieves little.
Data highlights the benefits of long term investment with a five year time frame typically reflecting the normal market cycle.
Broadly speaking, if you’ve a UK pension you can either choose to leave it where it is (ie. in the UK) and keep a close eye on marketing fluctuations and the effect on your nest egg, or to transfer your pension from the UK to any number of Irish options, including transferring your lump sum to your current employer’s pension fund, to a personal retirement bond, or if you are at retirement age, an annuity.
Of course, your concerns for your pension will depend on your age. If you’re currently in your mid-30’s the current Brexit rumblings will likely have little effect on your long-term pension fund. However if you are closer to retirement and the doomsayers are right, a Brexit economic tumble could have the potential to slash your savings before you’ve had a chance to rebuild them.
While your financial advisor should never advocate spontaneous, spur-of-the-moment decisions fueled by anxiety, now isn’t the time to sit on your heels either. Careful consideration should be given to the management of your funds based on your age and financial goals. If you have a UK pension and would like to review your options, give Hennelly Finance a call today. While we don’t have a crystal ball, we can do the next best thing and help you make informed, educated decisions about the best steps to take to manage your hard earned pension savings.
This blog post appeared first on the Hennelly Finance blog.