Brexit concerns lessen among Moneywise users
The number of Moneywise.co.uk users concerned about the impact on their personal finances of Britain exiting the European Union (Brexit) has fallen, according to our latest poll results.
In light of MPs recently voting in favour of activating the Article 50 Brexit trigger, we this month asked our readers which element of their finances they are most worried about – 66% detailed a financial concern, while 34% said they’re not worried about anything.
However, when we asked this same question in the weeks immediately after the referendum vote in June 2016, more people (78%) listed a financial concern and less said they had no concerns (21%).
Of those who are concerned about the impact on their finances, the biggest issue has also changed. Back in June 2016, the most worrying element was the impact on pensions and annuities (28%), but now the largest concern (21%) is interest rates falling on savings.
This could be due to the fact that the stock markets have recovered from their immediate crash and the FTSE 100 has risen to record breaking highs, while annuity rates have also begun to rise.
Yet while savings rates have begun to creep up, they still remain extremely low.
The number of people concerned about poor exchange rates has also lessened from 14% who listed it as their biggest concern eight months ago compared to 8% now.
Concerns about property prices falling and redundancy have also dropped since we last ran this poll.
See the full results in the two pie charts below (click to enlarge)
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.
A market-weighted index of the 100 biggest companies by market capitalisation listed on the London Stock Exchange. It is often referred to as “The Footsie”. The index began on 3 January 1984 with a base level of 1000; the highest value reached to date is 6950.6, on 30 December 1999. The index is “weighted” by how the movements of each of the 100 constituents affect the index, so larger companies make more of a difference to the index than smaller ones. To ensure it is a true and accurate representation of the most highly capitalised companies in the UK, just like football’s Premier League, every three months the FTSE 100 “relegates” the bottom three companies in the 100 whose market capitalisation has fallen and “promotes” to the index the three companies whose market capitalisation has grown sufficiently to warrant inclusion. Around 80% of the companies listed on the London Stock Exchange are included in the FTSE 100.
The difference between two currencies; specifically how much one currency is worth relative to each other. For example, if £1 is worth $1.50, converting sterling to US dollars, the exchange rate is 1.5. Converting dollars to sterling at those levels, the exchange rate is 0.66, so $1 is worth 66p. There are a wide variety of factors that influence the exchange rate, such as a country’s interest rates, inflation, and the state of politics and the economy in that country.
In exchange for any lump sum – usually your pension fund – an annuity is “bought” from an insurance company and provides an income for life. When you die, the income stops. Annuity rates fluctuate daily and depend on your sex (although from 21 December 2012 insurers will no longer be able to use gender as a factor when calculating annuities), age, health and a number of other factors, so you have to pick the right one and, once bought, its terms cannot be altered, so seek financial advice.