Brexit worries hit retirees’ financial plans

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The findings, which come from Prudential’s Class of 2017 research, found that 27% of this year’s retirees think the UK’s departure from the European Union will put pressure on their finances not just now, but for the duration of their retirement.

Since the UK voted for Brexit in June last year, 11% of people who had planned to retire this year have put their plans on hold as a direct result of the referendum, while 6% of those that had planned to retire in the UK are now considering a move overseas. In total, a third of this year’s retirees have changed their retirement plans.

As a result of the uncertainty created by Brexit, the Prudential research also found that 19% are more likely speak to a financial adviser about their retirement plans and 14% expressed fears about the effects of post-referendum market volatility on the value of their pension fund.

 

However, while Brexit is worrying some retirees, others are more optimistic.
Two-thirds of this year’s retirees think our divorce from the EU will have no impact their retirement plans while 12% reckon it will give their finances a boost.

Commenting on the findings, Kirsty Anderson, a retirement expert at Prudential says: “People planning to retire this year are expecting the highest retirement incomes since 2008 – so on the face of it, Brexit has had little impact on their retirement expectations. However, looking below the surface, there is a degree of uncertainty and nervousness among many of this year’s retirees.

“As you would expect, for many people who have been planning and saving for  
their retirement for most of their working lives, even the biggest of political
upheavals won’t make a difference to their long-term plans. But with one in three new retirees telling us that their retirement plans have been affected by the referendum result, it is clear that uncertainty is having an impact for some.

“It is encouraging to see that faced with uncertainty, be it around the performance of their investments or where they plan to set up home after their working lives, the Class of 2017 are seeking professional financial advice. It is also important to remember that pension saving is for the long term and, irrespective of single events no matter how momentous, the best way for most people to provide for a comfortable retirement is to save as much as possible from as early as possible, into a pension.”