How will Brexit affect your money?

brexit

by Lorna White |
Published on

The financial collapse that many experts predicted after the referendum didn’t happen, but there is no doubt that Brexit will affect our money. The good news is that the fall-out will be gradual, much like our exit from the EU, which gives you breathing space to get your finances ready for Brexit Day, currently scheduled for March 29, 2019.

Brexit and your pension

Pension pots are more flexible now so if yours is looking a little worse for wear after market fluctuations, sit tight if you can and wait for markets to settle - then you can decide whether to buy an annuity or draw down some income.

If you’re retiring shortly and are planning on buying an annuity, speak to an independent financial adviser for advice because you might want to act sooner in case rates fall even lower. Remember that once you’ve bought an annuity, you’re locked into that value and those rates – like Brexit itself, it’s a one-way door.

Brexit and The State Pension

The State Pension is dependent on UK regulations and is unlikely to be directly affected by Brexit. But the current negotiations may trigger an economic shift which may lead to the government revisiting how it’s structured. Read about the proposed changes to the State Pension age.

Brexit and your savings

Cash savings are generally safer than equities or bonds, so are less vulnerable to events like Brexit. But the Bank of England may be forced to cut interest rates again, which isn’t great for savers. All you can do is shop around for the best saving rates. Use our savings calculator to find out how your money might grow in future or how long it'll take to reach a savings goal

Brexit and your investments

Many parts of the stock market have made a good recovery since the post referendum dip but it’s still prone to ups and downs during the negotiations. Take a long-term view and don’t be tempted to sell up when the market slumps. Get advice to make sure you have a good spread of investments to minimise risk.

Brexit and your home's value

Low mortgage rates and demand outweighing supply in many areas could mean we avoid a property market crash. Downsizing can be a good way to free up cash if your pension pot is looking lacklustre. How to downsize your home to supersize your cash

5 things to do today to prepare for Brexit

Energy bills are expected to rise this year, partly thanks to Brexit. Switch, save and lock into the lowest price you can get now using the Yours Switching Energy service.

Savings rates may drop further, so shelter cash from the taxman using tax-free ISAs.

Brexit has already added 11.9% to holiday prices, according to Finderso track currency rates using Travelexand buy holiday cash whenever you get a decent deal. Use our top tips to save money on this year's holiday.

Buy British and seasonal produce. The cost of imported goods will continue to rise as long as the pounds stays low.

If you're worried about the impact of Brexit on your finances, talk to a financial adviser. Find one local to you at Unbiased.

8 tips for your retirement in Brexit Britainand A beginner's guide to investing in shares

Words Sarah Jagger, Yours money editor

Thanks to Hargreaves Lansdown, Unbiased, Prudential, Portafina

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