The real Brexit dividend for pensions This article was originally commissioned for the March 2018 edition of the Investment Life & Pensions Moneyfacts Magazine. Tom Murray argues that a slowdown of new regulation, and the stability that this brings to long-term planning, could be the real Brexit dividend for pensions. There is a lot of noise in the media at the moment about the so-called “Brexit dividend”. Leave supporters claim that there will be a huge financial windfall from leaving the EU, in line with the infamous claim of a possible extra £350 million per week for the NHS. Although this was widely discredited in the months since the referendum, it has been raised again by the Foreign Secretary, who now reckons it will be even higher.
The UK Government has embarked on a major reform of the pension regulatory environment. Prior to this, the UK‘s policy was to encourage pension saving by giving tax breaks to regulated pension savings schemes, as a quid pro quo, but demand that the retiree use the money saved to support themselves through to death.