pensions & brexit

lgar
lgar Posts: 1 Newbie
in Pensions, annuities & retirement planning
Due to claim my private pension, how will the uncertainty over brexit & the falling £ effect this?
«1

Comments

  • Linton
    Linton Posts: 17,160 Forumite
    Name Dropper First Post First Anniversary Hung up my suit!
    Are you buying an annuity or taking drawdown?
  • robber2
    robber2 Posts: 558 Forumite
    First Post Name Dropper First Anniversary
    "how will the uncertainty over brexit & the falling £ effect this?"

    In an uncertain way
  • robin61
    robin61 Posts: 677 Forumite
    edited 16 October 2016 at 9:46PM
    lgar wrote: »
    Due to claim my private pension, how will the uncertainty over brexit & the falling £ effect this?

    Well I have to say that since the referendum my SIPP has been doing very well. Will it continue to do so ? Who knows ? Best not to have all your eggs in one basket. I think that was true before Brexit and will still be the case after.
  • dunstonh
    dunstonh Posts: 116,365 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Private pension is not an actual product. It is a collection of some very different types of pensions that are not taken via the workplace. So, what type of pension is it? How do you intend to draw the income? annuity or drawdown
    Well I have to say that since Brexit my SIPP has been doing very well.

    You can slap me for being pedantic ;) Brexit hasnt happened yet.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • robin61
    robin61 Posts: 677 Forumite
    Yes you are right. Edited my post. Fancy me jumping the gun like that !
  • jamesd
    jamesd Posts: 26,103 Forumite
    Name Dropper First Post First Anniversary
    lgar wrote: »
    Due to claim my private pension, how will the uncertainty over brexit & the falling £ effect this?
    First we need to know what type of private pension you have.

    If it is a defined benefit type like final or average salary then there is no effect at all on it. Any risk is with the pensions scheme and the employer.

    If it is defined contribution then the effect so far is low but you might make a horribly bad mistake and buy an annuity, losing you perhaps half of your potential income level vs state pension deferral. It's commonplace for annuity sellers to not even mention state pension deferral as an option or to say only annuity is an option because all they sell is annuities, without bothering to mention that you can transfer to get the full range of choices.

    For defined contribution the best option tends to be income drawdown using money from that to fund state pension deferral since this is what provides the highest guaranteed income level for the money. It also allows handy things like taking income at a higher rate until state pension age is reached.
  • atush
    atush Posts: 18,726 Forumite
    Name Dropper First Anniversary First Post
    Brexit and uncertainty affect GBP and the markets. The markets and GBP could affect your pension, if it is of the invested type.

    So far, markets are up and the pound down. So fairly good for pensions.

    What will happen going forwards is anyones guess?
  • woolly_wombat
    woolly_wombat Posts: 819 Forumite
    Name Dropper First Post First Anniversary
    atush wrote: »

    So far, markets are up and the pound down. So fairly good for pensions.

    Not so good for those close to retirement who have Lifestyle pensions. Gilt yields are up, so prices are down and look as if they may have topped.
  • atush
    atush Posts: 18,726 Forumite
    Name Dropper First Anniversary First Post
    I dont know too many people who are lifestyling now
  • dunstonh
    dunstonh Posts: 116,365 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    atush wrote: »
    I dont know too many people who are lifestyling now

    We had a compliance bulletin a year or two back (in the lead up to pension freedoms) giving a recommendation that we cease to use lifestyling options as the are largely incompatible with pension freedoms and could be considered a mis-sale in future.

    Lifestyling was geared towards a static retirement date with the aim to buy an annuity at that point. That is no longer what most are doing.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards