What Brexit means for YOUR money – Savings, house prices, travel and MORE
BREXIT uncertainty and political chaos have led to fluctuations in the British economy. So what will Brexit mean for your personal finances?
Political chaos emerged after the 2016 Brexit referendum, and the pound has since experienced much fluctuation.
The British currency remains at the mercy of Brexit developments as talks with the EU have still not led to a deal between the parties.
So what does Brexit mean for your money?
Employment and benefits
The effect Brexit will have on UK employment and benefit payments is still speculative at this point.
Money.co.uk reports that if the economy grows, “employment opportunities and wages could go up and benefit payments would likely stay the same”, while if it shrinks, “unemployment could rise and wages may not keep up with the cost of inflation.”
Savings
The Bank of England base rate is currently at 0.75 percent compared to 0.25 percent after the Brexit referendum, money.co.uk reports.
This is good news for interest rates on UK bank accounts.
An idea could be to set up a fixed term account as this could give higher rates of interest, but it will tie up your money for a fixed period.
Travel
Ian Strafford-Taylor, the CEO of currency expert, FairFX said: “Currency should be a big deciding factor behind holiday planning so savvy holidaymakers should be keeping a very close eye on money amid the Brexit updates.
“By choosing a destination where the pound is performing well, the amount of money you need to enjoy yourself while you’re abroad will decrease, allowing you to see more of the world, for much less.
“Using expert currency products for international payments will also help to maximise your return and minimise any risk.”
House prices
House prices have so far not shown any signs of dropping too drastically yet.
According to Halifax House Price Index, the house prices fell 0,4 percent between October and December 2018.
This is great news for homeowners, but less promising for first-time buyers.
Pensions
The Office for Budget Responsibility predicts pensioners could be worse off over the next five years.
The Government’s pension adviser warned state pension age may be pushed up by a potential disorderly Brexit.
If fewer immigrants arrive in the UK over the next years, Britons may have to work into their mid-70s before they can retire.