Millions of workers across the UK could be heading for a significant shortfall in the amount of pension they need for an adequate income. The World Economic Forum (WEF) has issued a warning that calls on the Government to impose faster pension-age rises as it earmarks the UK as one of several countries facing a ‘pension time bomb’, with the UK pension savings gap reaching £25 trillion by 2050 if action is not taken soon.
Economic and financial outlook
As a result of the UK voting for Brexit (apart from the political turmoil), sterling has dropped significantly against the US dollar and the Japanese yen – the new safe haven currency it seems. We have a new Prime Minister and cabinet and a clear statement from the new Chancellor of the Exchequer that there will be no ‘Emergency Budget’. The normal Autumn Statement and Spring Budget process will be followed.
The point of maximum impact
The economic effects of leaving the EU could cause unemployment to rise in the UK which would reduce the pressure for wage growth. The Treasury estimated that wages will be between 2.8% and 4% lower at the point of maximum impact.
For the UK to leave the European Union, it has to invoke an agreement called Article 50 of the Lisbon Treaty.
The Prime Minister, David Cameron, announced on Friday 24 June he would be stepping down as prime minister by October, and he or his successor will need to decide when to invoke Article 50 which sets in motion the formal legal process of withdrawing from the European Union and gives the UK a period of two years to negotiate its withdrawal.
Higher stamp duty payable from April 2016