Pension savers wary of Brexit but average pot has gone up since Referendum
An increasing number of millennials think the value of their pension funds will fall because of Brexit.
Almost half (49%) of 18-34 year-olds surveyed by insurer Aegon believe their pension savings will shrink as a result of leaving the EU, up from 34% in October last year.
However, investment growth since the Referendum two years ago has been positive.
Aegon said that £50,000, the amount of the average pension pot, invested in the FTSE 100 two years ago, with dividends reinvested, would have gone up 30% to £65,500.
Overall, 42% of savers think Brexit will have a negative impact on the value of their pension savings.
Steven Cameron, pensions director at Aegon, said: “A high proportion of individuals are drawing a link between Brexit and how their pension fund investments may perform going forward. It’s not surprising that ongoing uncertainty as Brexit negotiations continue means many anticipate a negative impact. However, the reality is that someone who invested in the FTSE 100 just after the Referendum in 2016 would have seen substantial growth in their fund.
“Pensions are particularly long-term investments and those in their 20s, 30s and 40s won’t be turning their pension pot into a retirement income until many years after Brexit is done and dusted. This means most people shouldn’t be overly concerned if there are short to medium term movements in fund values.”