Since the 2016 EU Referendum, great swathes of the British public have little faith in a seamless Brexit transition.
After all, much of the media surrounding the UK’s withdrawal has been largely negative, and many people are bracing for the worst. Economic turbulence is all but guaranteed, but the sheer severity of it remains up in the air for now.
Still, a no deal Brexit would undoubtedly have a profound impact on people’s personal finances. While support from Likely Loans can shoulder many financial burdens, solutions need to be drawn up from a variety of different sources in order to make it through
Consequently, here’s some of the potential fallout that could hit people’s personal finances should a no deal Brexit become a reality.
Pension Decrease
When the economy experiences a big hit, the most vulnerable are hit hardest; particularly, those of pension age. Rates for annuities are expected to catastrophically drop in the event of a no deal Brexit scenario, and those funding the pensions like governments and employers instead turn their attention to themselves to focus on their own survival. Retirees fall to the back of the queue.
Instead of relying solely on pensions, many elderly peoples are being advised to invest now rather than later. After all, this would give them an extra source of income, so if they can make extra (and perhaps more) money in affordable investment schemes, it might be the best course of action for them to take. This is one of the ways their personal finances can be affected.
Numerous Price Hikes
Price hikes can be expected after Brexit is enacted, regardless of whether it’s a smooth or crash landing. The property market is already experiencing the worst nose dive since 2012, and while trade deals are still up in the air, the products that are left on the store shelves, like food, will likely come with a heftier price tag.
Remember, all of the trade that came in from Europe will now be slapped with hefty tariffs too, as well as what the UK exports to Europe. Businesses will lose interest in one another on either side of the line, and devolve their trading relationships based on affordability or practicality. Consequently, businesses and the economy will need to compensate greatly for these seismic shifts.
Guarded Finances
When uncertainty is rife, people grow cautious. This is the effect that Brexit is stirring amongst those in the UK, as no one really knows what affect Brexit will definitively have. Businesses are growing more cautious and, in some cases, moving their HQs overseas, and it’s partly down to tighter consumer spending growing more common.
When people don’t trust the economy, they bunker down and pool their resources. This is the process most of the British public will be sticking to for now, eliminating the possibility for big spending and simply waiting and see what happens. Of course, there’s even been talk of stockpiling goods, but in any event, for now personal finances are being feverously guarded.
