Last week, it was announced by the UK Prime Minister, Theresa May, that Article 50 would be triggered, which now means that Britain has taken the first step in leaving the European Union. However, what does that mean when it comes to your pensions and investments?
What is Article 50?
Article 50 is a part of the European Union law that discusses the procedure when EU members wish to leave the EU. However, this part of EU law wasn’t put into place until it was signed in 2007; the idea behind it was that it would make the EU more democratic, transparent, and efficient.
After the EU Referendum that was held on June 23rd 2016, it was only a matter of time before Article 50 would be confirmed and put into motion. On March 29th 2017, the law was triggered by Theresa May, which means that, for the next two years, a deal will be constructed for the UK to leave the EU. A negotiation which could potentially last many years.
What Will That Mean for Pensions and Investments?
Currently, it’s hard to definitively say how Brexit could affect pensions and investments. But, by looking at everything that has happened so far, we can guide you through any questions you may have.
For investments, it depends on how volatile the stock market is. Since the referendum, the British sterling is currently 17% down against the dollar compared to early June 2016, meaning that your investments could change. At Burton and Fisher, we provide diversified investment portfolios, meaning that you still might be able to receive positive returns even if portions of your investment see a decline.
For pensions, it’s difficult to definitively say how the trigger of Article 50 could affect them, so any conclusion that is determined currently is through speculation. If you have questions regarding your pensions and finances may be affected by Brexit and the trigger of Article 50, then seeking professional advice would be the best solution.
We at Burton and Fisher have been providing pension and investment advice for over 10 years, so you know that you are in safe hands when it comes to your finances. If you are in doubt of where your pensions or investments, then please don’t hesitate to contact one of our friendly financial advisors today on 01524 416872.