Almost one in two savers (42 per cent) are worried that their pension funds will fall as a result of Brexit, according to new research.
In contrast just 4 per cent of those surveyed were anticipating any form of “Brexit bounce” on their pensions.
The survey — from Aegon — found that younger people had the most negative outlook, with 46 per cent saying they feared their pensions would fall in value as a result of Brexit.
Confidence has fallen sharply among this age group, as only 35 per cent were anticipating a negative impact when the same survey was carried out in 2017.
However overall these figures have remained broadly stable over this period.
This comes despite many people having experienced positive investment growth since the Referendum. Analysis by Aegon reveals that £50,000 — the size of the average pension pot — invested in the FTSE 100 on the date of the referendum (23 June 2016) would have seen a rise of 32 per cent to more than £66,000 before charges.
The FTSE 100 companies have a high proportion of earnings outside the UK and the index has benefitted from weak sterling.
Aegon’s pension director Steven Cameron says: “Despite the ongoing developments, controversy and daily drama around Brexit, pension saver confidence around the impact of Brexit remains almost completely unchanged compared to two years ago.
“Over 4 in 10 people continue to expect it to have a negative impact on the value of their pension, while only 1 in 25 expect it to impact positively. The remainder are unsure or expect no impact.”
He adds: ““While we have seen a fair amount of investment market volatility since the Referendum, this doesn’t have any immediate effect on pension savers who are not yet taking an income. If your planned retirement is still many years away, the best course of action is generally to keep saving. If you are about to start taking an income, we recommend seeking professional advice on the best approach to investing.”
