Why You Should Transfer Now

November 2018
Did you read our previous post on "How Safe is Your UK Pension" where we pointed out that some major UK Pension schemes are vulnerable to company failures and shortfalls in provisioning.

The Bank of England today (29 November 2018) that the UK may face its worst economic slump since World War II if Prime Minister Theresa May fails to get her Brexit plan past lawmakers on December 11th. Britain is due to leave the EU by 29 March 2019 with a two year window.

In the event of a disorderly exit from the EU The Bank of England predicts a worst case scenario would be:
  • GDP drops 8%
  • House prices fall by 30%
  • Commercial property fall by 48%
  • Sterling falls by 25%
  • Unemployment rises to 7.5%
  • Inflation rises to 6.5%
  • Net outflow of people
While a disorderly situation would leave GDP as much as 10.5 per cent lower by the end of 2023 relative to remaining in the EU, the loss diminishes to less than 4 per cent under an agreement that maintains close ties.

We do believe common sense will prevail and the UK will avoid the worst case scenario, but is it worth the risk?