At the time of writing (June 29th 2016), GBPensions is of the view that perception might be worse than reality – at least for anybody considering moving their pension.
Since Britain voted to leave the EU, there have been some currency fluctuations. We do not offer advice on foreign exchange matters, but we can confirm that the NZ QROPS (Qualifying Recognised Overseas Pension Schemes) used by GBPensions can hold investments in Sterling, so a transfer does not necessarily have to mean an immediate currency conversion.
Speaking of QROPS, there is no indication presently that these will not continue post Brexit.
It is true that DC (defined contribution) schemes could be affected by stock market fluctuations. They may suffer a fall in value until market stability returns.
For DB (defined benefits) schemes, there could be some additional considerations for anyone contemplating a transfer. As it seems to be generally accepted that UK interest rates and gilt yields will be lower for longer, DB scheme transfer values could remain high or even increase. Additionally, lower economic growth – which is common during any period of uncertainty – would tend to reduce equity returns. Given these two aforementioned facts, the funding levels of DB schemes are likely to come under increased pressure, potentially strengthening the argument in favour of a transfer.
GBPensions’ director Tony Chamberlain says, “Naturally we have been receiving phone calls and e-mails from people who are worried about the potential repercussions of Brexit. My advice is, if you are considering moving your pension, have a chat with an independent adviser. It’s far better to ask questions, air your concerns, get all the facts, and then make an informed decision.”