Continued uncertainty surrounding Brexit and the implications of a potential change in Government

The UK Parliament will hold a second day of indicative votes today where different Brexit options will be explored. This comes after the UK Parliament rejected the withdrawal agreement on March 29th, following two previous rejections of the entire deal. A power vacuum is being created in the government and if this instability continues in the following years, it could result in a change in government following the next general election in May 2022 or even sooner.

 With a future election in mind the Labour Party have published a 10-point plan, detailing their intentions for managing the economy if elected. In this plan, they have signaled an interventionist approach, promising sweeping nationalisation and an overthrowing of the current capitalist model. With the Shadow Chancellor John McDonnell stating that he is “serious in his intent” to “radically challenge the system as it now is.” The Labour Party leader Jeremy Corbyn echoing McDonnell’s sentiment, “the old way of running things isn’t working anymore, that’s why Labour is offering a radical plan to rebuild and transform Britain.”

 Labours transformation plan includes moving the Bank of England to Birmingham and nationalising the RBS. Importantly it also specifically touches on the changes that they plan to make to the UK pension system. Step six:

“The Pensions Regulator, the Prudential Regulation Authority and Financial Conduct Authority are to be brought under direct Treasury supervision to ensure workplace pensions and the investment industry are a wider benefit to society.”

What this could mean for privately held or company UK pensions is unknown but could result in significant changes, which could include to how and when pension can be accessed, the portability of pensions and taxation.

With the ongoing uncertainty surrounding Brexit and its potential impacts on UK pensions, if you are living in New Zealand with a UK held pension, or have a QROPS held outside New Zealand transferring your pension to New Zealand will remove this uncertainty and  will help you be closer and more in control of your money.

Ranfurly Strategic offer a listed Superannuation Scheme, as well as an agent that can assist you through the transfer process, prepare transfer forms, and assist in obtaining the required UK and NZ advice that you need. The Ranfurly Scheme is listed on the UK Government Recognised Pension Schemes List.

 The Ranfurly Superannuation Scheme is an NZ QROPS backed by award-winning investment groups.

 To get ahead in your retirement journey, start now.

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