While 2016 was undoubtedly one of the most turbulent in living history, 2017 is already shaping up to be similarly eventful. That doesn’t mean there’s plenty to watch on the news – these political events can have a significant impact on your finances.
Obviously one of the big headline grabbers throughout this year will be the US President Donald Trump. Charitably, you can describe his performance so far as unpredictable, and that uncertainty will be a concern for the fund managers who look after so many of our pensions. Only time will tell exactly what impact ‘Trumponomics’ has on our finances.
We have our own massive political change taking place here in the UK in the form of Brexit. The first step towards leaving the EU will come with the triggering of Article 50, which is due to happen at the end of March.
While the dire economic warnings about what would happen if we voted to leave haven’t yet come to fruition, it’s important to remember that we haven’t actually left yet. The value of the pound has, however, fallen significantly since the Brexit vote, while inflation has risen and is predicted to continue to do so.
It seems likely that there will be further bumps along the road as we leave the EU.
There are a host of significant elections taking place in Europe this year; all of which will have an impact on the investment markets, and as a result the British economy – and your pension savings.
There are general elections due to take place in France, the Netherlands, Germany and possibly Italy. Who would bet against further unexpected results?
The Lifetime ISA
One of the Government’s big ideas to get us saving more is the Lifetime ISA, which launches in April.
You can save up to £4,000 per year, and you’ll get a 25% bonus from the Government on your savings on top, up to the age of 50.
Another of the Government’s initiatives is the auto enrolment scheme, where employers are duty bound to enrol their employees in a pension and contribute towards it.
Thousands of employers across the country will have to join the scheme this year; if you work for a firm of smaller than 30 people, then chances are you’re one of them.
The importance of a will
There’s not a lot that you can do about the ups and downs of the political world. Though you can set in stone exactly how you want your assets to be divided between your loved ones after you die.
It isn’t a nice thing to think about, but a will is crucial if you want to determine who gets what. Speak to legalmatters today about your plans by calling 01243 216900 or email us at firstname.lastname@example.org.