Pensions - Articles - Pension savers wary of Brexit impact despite boost to funds

 Those in the 18-34 age group are the most negative about the impact of Brexit on the value of their pension funds, with just under half (49%) saying that they think their pension funds will fall in value as a result of Brexit. This has risen since October 2017, when 34% of those in this age group were predicting a fall in value of funds, suggesting ongoing uncertainty has taken its toll.
 
 Of those surveyed, just 5% said that they believe their pension savings will grow in value as a result of Brexit. This comes despite investment growth since the Referendum two years ago having been positive. Analysis by Aegon reveals that £50,000, the amount of the average pension pot, invested in the FTSE 100 two years ago, with dividends reinvested, would have seen a rise of over 30% to £65,500.
 
 Steven Cameron, Pensions Director at Aegon said: “A high proportion of individuals are drawing a link between Brexit and how their pension fund investments may perform going forward. It’s not surprising that ongoing uncertainty as Brexit negotiations continue means many anticipate a negative impact. However, the reality is that someone who invested in the FTSE 100 just after the Referendum in 2016 would have seen substantial growth in their fund. Pensions are particularly long term investments and those in their 20s, 30s and 40s won’t be turning their pension pot into a retirement income until many years after Brexit is done and dusted. This means most people shouldn’t be overly concerned if there are short to medium term movements in fund values. Whether it’s Brexit or one of many other events that lead to volatile and uncertain markets, saving regularly is a good way of ironing out ups and downs.”