Treasury claims Brexit will wipe £2k from pension pots

Brexit

Treasury research claims a vote to leave the European Union would see the value of some pension pots drop by nearly £2,000.

According to the BBC, Treasury analysis published yesterday suggests those with an additional pension pot worth £60,000 would see its value drop by at least £1,900 in the event of a Brexit.

The Treasury also warns leaving the EU would cause inflation to rise leading to a decline in the value of state pension increases, which was estimated to cost pensioners £137 each year.

The research also details the impact of a Brexit for a 50-year-old with a £20,000 pension pot. If that person was to contribute 8 per cent of their salary into a pension fund between now and 2030 they would be between £223 and £335 worse off each year in retirement, according to the Treasury.

Chancellor George Osborne says: “Pensioners who have worked hard all their lives deserve dignity, security and certainty in retirement. That’s what we all hope for and what any responsible government should seek to provide.”

However, Vote Leave campaigner and former pensions secretary Iain Duncan Smith says the biggest threat to UK pensions was the European Commission’s proposals to undermine occupational pensions.

He adds: “This is an utterly outrageous attempt by the Government to do down people’s pensions and is little more than a cynical attempt to distract from the government’s broken promises on immigration.”