Pension savers remain wary of Brexit impact

The proportion of workers who believe that Brexit will a negative impact on the value of their pension savings has remained almost unchanged compared to two years ago, increasing slightly to 42 per cent.

Aegon’s bi-annual Retirement Confidence Survey has shown that 42 per cent of individuals believe that Brexit will adversely affect their pension pots, an almost identical share of those surveyed in 2017 (41 per cent) who expressed the same fear.

The number who expect Brexit to have a positive impact remains unchanged, at four per cent, while the remainder are unsure or expect no impact.

Aegon has also said that confidence has fallen sharply among 18 to 34 year olds, with 46 per cent of them thinking their pension funds will fall in value as a result of Brexit — an 11 per cent increase since 2017.

The amount of people with a negative view of Brexit’s possible impact on their savings remains broadly the same despite many savers having experienced positive investment growth since the EU referendum.

Analysis by Aegon reveals the average pension pot of £50,000, invested in the FTSE 100 on 23 June 2016 (the date of the referendum date), with dividends reinvested, would have seen a rise of 32 per cent to more than £66,000, before charges.

“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,” said Aegon pensions director, Steven Cameron.

“Political and economic uncertainty, such as we’re seeing as a result of Brexit, tends to be bad news for stock markets.

"However, those invested in the FTSE 100 have actually seen strong growth, which many put down to the majority of companies in this index generating most of their earnings overseas, with the value of those to UK investors having been boosted because of a weaker sterling.”

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