Advice for savers after Brexit: Don't panic and don't sell

Pension experts said the message should be “don’t panic” amid the uncertain economy, and savers should consider taking advice if they are planning to take money out in the near future.

Tom McPhail, head of retirement policy at Hargreaves Lansdown, said: “For long-term pension investors who may be seeing the value of their retirement savings falling today, the key message is to do nothing unless you have to.

“We are likely to experience a period of volatility in the markets and uncertainty in the wider economy. In these conditions, acting in haste is unlikely to serve well. If you are years from retirement and making regular savings, then just keep going; falls in the market mean buying investments at a lower price.

This new Britain: Let’s build bridges not barriers, pleads Archbishop of York

Yorkshire and Britain vote to Leave European Union

Tom Richmond: Keep calm and carry on after Britain’s wake-up call to the world

Sterling slips to 31-year low with Leave campaign striding to victory

Farage hails ‘Independence Day’ as UK votes for Brexit

“If you are close to retirement, then try to avoid selling funds and shares right now. Annuity rates may move in response to changing interest rates, however this is not certain.”

Mr McPhail warned there could be changes to the state pension as the Government looks to make savings.

He said the “triple lock” on state pensions, which guarantees they are uprated by a certain level, could be an “early casualty” of a Brexit.

Mr McPhail continued: “We could also see a more rapid increase in state pension ages.”

There could also be further curbs to pension tax relief, Mr McPhail said, “so investors would be well-advised to make the most of the available tax relief while they still can”.

Steven Cameron, pensions director at Aegon UK, said: “Our key message to pension savers is ‘don’t panic’.

“If you have a defined contribution or personal pension, its value will be affected by stock market movements and if you are thinking of taking money out in the immediate future, we recommend you first seek advice.”

He continued: “The UK Government might consider other changes to pensions in response to wider economic conditions and we will be monitoring closely any possible impact on our customers.”

Huw Evans, director of the Association of British Insurers (ABI), said: “The UK insurance and long-term savings industry is strong and built to protect customers from market uncertainty and shocks.

“Customers should remember we remain part of the EU until the process of leaving is complete and they should therefore avoid hasty decisions about their financial matters.”

Steve Webb, director of policy at Royal London, said: “There is no doubt that we are entering a period of great uncertainty in which we will witness short-term market turmoil both in the UK and beyond.

“There will be much public debate about how this will impact the pensioners of today and tomorrow. Consumers who are concerned about their pensions and investments should take informed, impartial financial advice and avoid making knee-jerk decisions.

“Whatever action consumers choose to take, it remains important that they continue to save and invest for their own retirement. There is no substitute for long-term saving when it comes to securing a comfortable future.”

Mr Webb, who was previously pensions minister, said that while there may be concerns about threats to the triple lock on the state pension, “it would be odd for a government to prioritise a cut which would affect the most powerful voting bloc in the country”.

Mr Webb continued: “Ultimately, pensions are a long-term project and their future depends on a healthy and growing economy. This, rather than the immediate future, will be the key test which will determine the quality of life in retirement of millions of UK citizens.”