Brexit two years on: how have your pension and investments been affected?

New figures suggest some predictions of doom for pensions and investments made two years ago may have been wide of the mark.

Sunday marked exactly two years since the UK voted to leave the European Union – a day of joy for some, but a financial disaster according to others (including one of our writers).

Some of those fears may be unfounded, it seems, because, since the vote, the average pension pot would have grown by 30%.

That’s according to pension provider Aegon, which found that a £50,000 pension pot, invested in the FTSE 100 with dividends reinvested, would have grown to £65,000.

Despite these figures, 42% of pension savers surveyed by Aegon currently believe their funds will fall in value because of Brexit, with just 5% predicting growth.

They shouldn’t be so concerned, argued Steven Cameron, pensions director at Aegon:

"Pensions are particularly long-term investments and those in their 20s, 30s and 40s won’t be turning their pension pot into a retirement income until many years after Brexit is done and dusted.

“This means most people shouldn’t be overly concerned if there are short to medium term movements in fund values.”

Moving abroad? How Brexit could affect your pension

Should you look abroad?

Interestingly, the best returns for investors have not generally been found in the UK, but abroad.

Since Brexit, the FTSE 100 has grown by 30.2% (with dividends reinvested); the FTSE 250 by 27.4% and the FTSE small cap by 37.7%.

That might seem impressive, but not when you look overseas.

Shares in Asia-Pacific have grown by 56.8% over the last two years, with similar results in Japan and the USA; even the Middle East, Africa and Latin America have outpaced the UK, according to AJ Bell.

It’s no coincidence that FTSE companies with overseas earnings and exports – namely industrial metals and mining - have performed strongest.

Mining companies have performed best since Brexit (image: Shutterstock)

The shares of mining company Glencore are up 145% since the referendum, followed by Anglo American (143%) and miner Antofagasta on (129%).

Don’t blame it (all) on Brexit

Not all the worst performing companies have been on the high street, but they’ve certainly got the most attention.

Retail as a sector has fallen 10% since Brexit.

Mothercare, Debenhams and Dixons Carphone have posted appalling results, with price falls of 55% upwards.

The poor fortunes of these stores shouldn't be solely blamed on Brexit says Laith Khalaf, senior analyst at Hargreaves Lansdown.

“The retail sector has come under pressure from higher labour costs, lower footfall, and the relentless rise of digital shopping.

“The [post-referendum] currency crunch didn't cause these issues, but it made life more difficult in already tough times for high street retail.”

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Hi all, one final point.... we appreciate Brexit remains a highly controversial topic, despite the fact it has seemingly been raging on forever.

We know Brexit hasn't happened yet. We don't know what lies ahead. This isn't an opinion article. It isn't trying to argue for or against anything, merely reporting on something we felt was worth sharing.

Regardless of your standpoint on Brexit we hope you found it interesting.