We can say many things about the ongoing saga of Brexit but certainly not that it is plain sailing – short of wars and the oil shock of the 1970s, I can’t remember many times less plain sailing than now.
In the three years since the UK voted to leave the European Union on 23rd June 2016 we have seen increased political division and rising uncertainty over both the likely outcome of Brexit and the future party of Government of the UK.
Markets do not like uncertainty and this has led to large falls in Sterling and Gilt yields falling to near record lows.
What does this mean for Pensions?
Ironically the current economic headwinds have created an opportunity for many to improve their lot by changing how their pensions are managed.
Pension transfer values are very high, indeed in many cases higher than they have ever been, buoyed by the low gilt yields and relative increases in the value of non-UK assets when considered in Sterling terms.
So, what does all this mean for members of UK pension schemes, both Final Salary and Money Purchase?
There is no one size fits all answer however clarity can be achieved by undertaking an AAM Global Wealth Structuring UK Pension Audit. Your UK Pension Audit will tell you:
- How much your pensions are worth and what you can expect when you retire
- Whether your pensions will allow you to take your retirement income when and how you want
- What the impact of tax will be on your retirement plans
- Whether you are on track for your perfect retirement
- If your pension will pay you for all of your life
- If you have the Optimum Pension for your circumstances and plans or if there is a better alternative
The combination of Brexit uncertainty and low interest rates mean that there has never been a better time to consider how your pensions are managed.
To arrange your UK Pension Audit, call your AAM Wealth Manager or email [email protected]
Op.ed piece by Ian Black
Head of Financial Planning & Wealth Solutions
This article is an op-ed piece by Ian Black. The views expressed in this article are those of the author and do not necessarily reflect the views of AAM Advisory Pte Ltd. This document/article should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any securities/products mentioned herein. The information does not take into account the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a licensed financial adviser regarding the suitability of the investment product before making a commitment to purchase the investment product. Past performance is not necessarily indicative of future performance. Any prediction, projection, or forecast on the economy, securities markets or the economic trends of the markets is not necessarily indicative of future performance. Whilst we have taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The above report may contain data obtained from third parties and as such we cannot guarantee the accuracy of this data.