How will Brexit affect my money?
Britain’s decision to leave the EU has sent the pound plummeting and the stock markets spinning – but how will it affect your pocket?
The financial collapse that many experts predicted after the referendum didn’t happen, but there is no doubt that Brexit will affect our money. The good news is that the fall-out will be gradual, much like our exit from the EU, which gives you breathing space to get your finances ready for Brexit Day, currently scheduled for March 29, 2019.
Your pension
Pension pots are more flexible now so if yours is looking a little worse for wear after market fluctuations, sit tight if you can and wait for markets to settle – then you can decide whether to 2019 buy an annuity or draw down some income. If you’re retiring shortly and are planning on buying an annuity, speak to an independent financial advisor for advice because you might want to act soon in case rates fall even lower. The State Pension is dependent on UK regulations and is unlikely to be affected directly by Brexit.
Your savings
Cash savings are generally safer than equities or bonds, so are less vulnerable to events like Brexit. But the Bank of England may be forced to cut interest rates again, which isn’t great for savers. All you can do is shop around for the best savings rates.
Your investments
Many parts of the stock market have made a good recovery since the post referendum dip but it’s still prone to ups and downs during the negotiations. Take a long-term view and don’t be tempted to sell up when the market slumps. Get advice to make sure you have a good spread of investments to minimise risk.
Your house value
Low mortgage rates and demand outweighing supply in many areas should mean we avoid a property market crash. Downsizing can be a good way to free up cash if your pension pot is looking lacklustre. n see the next issue of Yours for more money advice, on sale august 1
if you’re worried about the impact of Brexit on your finances, talk to a financial adviser. Find one at unbiased.co.uk