Transfer firms untroubled by Brexit

Pension transfer advisers are expecting to have to reassure some British migrants about the impact of Brexit on their UK super savings.

Tuesday, June 28th 2016, 6:00AM

by Susan Edmunds

Since the vote last week, the British currency and sharemarkets have taken a hit.

Alun Rees-Williams, of Britannia Financial Services, said he had come to work on Monday to a large number of emails from people inquiring about the potential impact of the turmoil on their pension pots.

But he said it was unlikely to cause a slowdown in transfers.

“There is definitely a degree of uncertainty. We may see an increase in people concerned about their benefits being maintained in the UK and looking to transfer.”

Short-term panic about the exchange rate could cause some reluctance to transfer but it was unlikely to last, he said. Many who were worried would decide to bite the bullet and transfer, anyway.

“There will be enough panic about long-term pensions in the UK to get more inquiry. But the only advice we can give is that everything is so uncertain at this stage.”

Tony Chamberlain, of GBPensions, said he did not think there would be much impact on his business. New Zealand QROPS funds can hold investments in foreign currencies, so a transfer did not necessarily have to mean an instant currency conversion.

Only defined contribution schemes would be affected by market fluctuations, he said.

“Markets might stay lower for a period of time. But there’s no real consequence as far as we’re concerned. The perception is greater than the truth.”

Tags: pension transfers QROPS