Concerns

It’s normal to be concerned about your pension. Especially in today’s mid- Brexit world economy. Whether you are worried about your future pension or are currently receiving it. It might be contributing to your care costs. If the value of your pension fund reduces then this will obviously affect that provision. However, if it increases then your worries will naturally subside.

This may be immaterial depending on the type of pension you may have a defined benefit or defined contribution scheme.

Current market

The current market conditions are volatile to say the least. The uncertainty has influenced the stock market and the value of the pound with both falling. If your pension is linked to the stock market via a fund, then most likely some of it will have reduced in value. Most defined contribution scheme pension funds spread the money in your pension pot over different asset classes and are therefore always at risk. If you are close to retirement, then many funds will switch you to a lifestyle funds which will protect you from the worst of the market meltdown.

However, many defined benefit schemes will guarantee your income in retirement regardless of fluctuations in the financial markets.

Brexit effect

As stated above, the Brexit effect on pensions so far has been negative for pension funds if linked to stocks. However, falls in markets often provide opportunity to find value.

There is so much unknown when it comes to Brexit, we certainly do not want to be the ones to decide what happens. We will continue to operate and care for those who need us. We think pensions will do the same, they fluctuate in value depending on your scheme, but continue to be present.

What to do

As always, the best thing to do is be prepared and informed. Talk to your pension provider and ensure they are protecting your money, maybe move to a more risk averse strategy. Alternatively speak to Pension wise to find out your options and what you can do today.

Since pensions factor so much in people’s later life it has come to our attention. Mumby’s are not pension providers or financial advisers. We can only provide useful information to the people we care for. If you need any further guidance please contact us or follow the link to our funding page.