Your Retirement Will Cost More Because of Brexit

Nearing retirement? You may want to rethink your pension plans as thanks to Brexit, to fund the same income in retirement you will now have to save 14% more

Emma Wall 14 September, 2016 | 9:51AM
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Think your retirement is safe from the Brexit fall out? Think again. According to calculations by BlackRock, market movements following the EU referendum will mean you will now need to save 13.7% more to fund the same level of retirement income.

Much of the shortfall is due to government bond yields – which have come crashing down since the vote

In June 2015, BlackRock’s Cost of Retirement Index indicated a 55-year-old would have to save £19 for every £1 of annual retirement income. But fast forward to this month, and the same pension saver now needs £28 to fund every £1 of annual retirement income. This is an increase of 42% - and the steepest sweep of the curve comes in the past few months since the referendum result. Since Britain voted for Brexit, the cost of retirement has increased 13.7%.

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Emma Wall  is former Senior International Editor for Morningstar

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