Brexit-Proof Your Life: Do I need a Financial Adviser for my pension?

PUBLISHED: 18:52 07 January 2019

True Bearing Chartered Financial Planners

True Bearing Chartered Financial Planners


Will pensions be affected by Brexit? Here’s a look at the current climate and whether you need a financial adviser for your pension.

The current uncertainty surrounding the UK’s exit from the European Union could have major implications on trade, travel and tax once the final deal is implemented in March 2019.

One other implication of Brexit that affects all of us are the potential changes that might have an impact on our pensions.

While state and workplace pension legislation may well be dependent on the future relationship of the UK and the EU, private pensions should remain largely unaffected if managed properly.

Many pensions are managed by ‘Active’ fund managers which means they freely move in and out of different assets depending on factors including the economy. These same Active Managers hawkishly watched the economic issues around Brexit and positioned their investment portfolios accordingly. They could take advantage of short term market falls to buy assets more cheaply, then hold them with a view to selling when values have risen; with a view to making a gain for your pension fund.

‘Passive’ or ‘Tracker’ funds within pensions, whilst popular because of their perceived lower cost, may be harder hit through these more volatile economic and market conditions. This is because they simply follow an index (such as the FTSE 100) and have no experienced fund manager making changes because of what’s going on in the world.

With talk of a transition period lasting beyond the spring of 2019 until December 2020 and the potential of volatile markets in the near future, it could be beneficial to have your pension portfolio managed for the long term by a fund manager to your specific risk levels and can react to any changes in the market on your behalf.

Chorley based True Bearing look after the investment, pension, protection, mortgage and estate planning requirements of thousands of personal and professional clients throughout the UK and have a dedicated team of independent financial advisers who provide a specialised service for all their clients who seek pension advice.

While nobody can truly predict all the permutations of Brexit, it is just one event in the long timeline of your pension planning. Over the course of your working life, your needs, pension legislation and the investment markets will evolve and seeking regular consultations with a financial adviser will allow you to effectively plan for the future.

True Bearing’s philosophy is that every person should be engaged in their retirement planning no matter what stage of life you are at. For those in their 20-50’s, you should already be saving towards your pension, at your 50’s-60’s, you should be considering what retirement for you will look like and in light of that, planning for your retirement and increasing your contributions if possible.

At retirement age you would need to look at what options are open to you? And consider questions such as: who will manage pension and drawdown?

With so many considerations at every stage of your life, having good independent pension advice to take you through this long journey can reap its rewards for you. A good financial adviser will assess your individual circumstances and aspirations and task a fund manager to make the investments that will eventually help you enjoy the retirement that you want.

To read more about the services on offer at True Bearing Chartered Financial Planners, visit their website and speak to one of their independent financial advisers for answers on one of the current hot topics everyone needs to know as we move ever nearer to Brexit: Do I need a financial adviser for my pension?

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