I started with my own pocket. I don’t have a pension because I worked for myself before I retired so my pension comes from investments that I made over the years in PEPs and ISAs, and unit trusts that I invested in. There’s also a pot of money I made when I downsized and moved to a cheaper area of the UK. I think that makes me a pretty good arbiter of whether I’m better or worse off after Thursday’s vote.
On paper, I’m about £6,000 worse off on my portfolio since last Wednesday night, but interestingly I’m about where I was the same time the previous week. In fact I was worse off on paper when dear old Gordon gave us the financial crisis. So in terms of share values, Brexit has cost me bugger. In any case it’s a paper loss. If I don’t sell the shares, then I’ve still got them and not the cash. Having held them for donkey’s years, I’m not about to cash in just yet.
Of course the big holiday I’m taking next year in South Africa just got more expensive because the pound has dropped a bit. Except that the Rand has jumped about quite a bit too, so if we’re trying to guess whether Brexit has cost me more on that one, it’s still anybody’s guess.
And if you look at the pound against the Euro, it’s down to around 1.23 today. However, I found an old exchange receipt from a previous holiday in the back of the drawer and, guess what? 1.24 to the pound! No big drop – more like big deal!
The worse thing that happened to me was when interest rates plummeted. When I retired 7% was easily achievable on 1 year fixed term. Today it’s around 1.6% so my income dropped accordingly. Even after Brexit I should still be able to get something around that so I’m not panicking.
All in all, I think UKIP summed it all up nicely. “It was a very British apocolypse – it was all over by teatime!”
Emergency budget next week then, Gideon?…