Will my Pension Pot dip after Brexit...!?

lookforwards

Hello

Will my Pension Pot dip after Brexit...!?

Nobody can know for sure the answer to my question, but some of your opinions would be interesting...

My stake holder pension fund has steadily risen over the years, with only a few minor drops, and so has been a good investment.

I will soon need to withdraw my tax free allowance of 25% and was planning to do this in 2 stages, taking out 12.5% in March 2019 and the remaining 12.5% in March 2020. I was planning 2 withdrawals since on past performance it would seem wise to leave money in the pension as long as possible and not withdraw it until absolutely necessary.

However that was before Brexit which is due to arrive on the 29th March 2019. My wild guess is that pension values are likely to drop after Brexit but hopefully recover in the medium term.

Therefore maybe it would be advisable for me to withdraw the whole 25% before Brexit rather than risk splitting it over 2 years and getting less tax free income if the pension value falls??

Thanks for looking :-)

JoeEngland

It depends on what deal, if any, is negotiated with the EU and what impact that will have on the exchange rate and business confidence. So far Brexit via the fall in the pound has had a positive impact on my pension funds, although I don't know what the counterfactual would have been.

dunstonh

Will my Pension Pot dip after Brexit...!?

You haven't told us anything about your investments. So, we cannot offer an opinion without knowing what you are invested in.

I will soon need to withdraw my tax free allowance of 25% and was planning to do this in 2 stages, taking out 12.5% in March 2019 and the remaining 12.5% in March 2020.

You may need to transfer your pension to do that. That requires drawdown functionality and most stakeholder pensions dont support drawdown.

You should not be invested in the markets at this stage. If you are then get it changed.

My wild guess is that pension values are likely to drop after Brexit but hopefully recover in the medium term.

Pensions are unaffected by Brexit. if it the investments that matter. A hard Brexit will likely see values of global invested funds rise in value as it will be Sterling that takes the hit. A soft Brexit will likely see Global assets fall in value as Sterling rises (although the impact of markets may offset that).

For you, as you shouldn't be invested in the markets at this stage, this really shouldn't be an issue other than you making sure you are in the cash fund.

Thrugelmir

lookforwards wrote: »

Will my Pension Pot dip after Brexit...!?

Your pension pot could dip (or even rise further) for any number of reasons. Reasons behind the more recent good performance of markets generally are no secret. Has your fund reached your personal objectives? Human nature is to want more. Sometimes being satisfied with what you've got is more important. As you'll often only get one bite of the cherry.

westv

The CRASH is coming.
You can run but you can't hide. :eek::eek:

Tammer

As DunstonH says, it all depends on what your pension savings are invested in. For example, if they are all in a Japanese Smaller Companies fund, the impact will be different than if you are in a UK Managed Fund.

ffacoffipawb

A Corbyn govenment is likely to prove catastrophic. Can't see that envious socialist retaining the £20,000 ISA limit for a start, or even ISAs at all. Need money for his lazy demographic snowflakes.