Brexit May Reduce Retirement Fund For The United Kingdom

The Treasury predicts a severe “shock” scenario that could cost retirees about £18,000 to £32,000 from their retirement funds.

The analysis by the Treasury indicates that any pensioner with a £60,000 defined contribution pot at £60,000 could see a £1,900 to £5,200 removed from their value should the UK exit the EU.

Individuals over 50 who earned average wages and had defined contribution pension assets of £20,000 will lose about £3,800 to £5,800 from their annuities by 2030 if they were contributing 8 per cent of their earnings between 2016-2030.

Inflation forecasts once the UK exits the EU could mean a loss of 2.5 per cent yearly and will likely increase. This could mean an additional £137 annual loss for households nationwide.

UK Chancellor George Osborne said:

“Much of the debate so far has focused on the potential economic fallout of a vote for Leave for those now in work, in terms of the impact on their jobs.

“But it’s important that pensioners understand what’s at stake for them too on June 23.

“Pensioners who have worked hard all their lives deserve dignity, security and certainty in retirement. That’s what we all hope for and what any responsible government should seek to provide.

“As Chancellor, I feel very strongly that my first responsibility is for people’s jobs, livelihoods and living standards.

“I couldn’t recommend something that we know would put all that at risk.”