UK. What impact could the Russian invasion of Ukraine have on pensions?
The terrible atrocities in Ukraine have had major consequences on the world from creating a large-scale humanitarian crisis to unnerving global stock markets.
But platform Interactive Investor (II) said that the latter has “implications for the value of pension pots and by extension, retirement plans”.
Initially, the concern among pension savers was that they did not want to be invested in Russian companies. A number of pension providers responded swiftly to the invasion of Ukraine by declaring their intention to divest from Russian holdings.
But, II has said that “this principled move will not insulate the value of our pension funds from the impact of the war on the global stock market, which underpins 22.4 million defined contribution workplace as well as millions more non-workplace personal pensions”.
Exposure
Even with minimal exposure to the Russian economy, pension investments are “exposed to the general global uncertainty caused by the war, because they are invested in assets that span global stock markets”, II said.
Many global companies are affected by the war too – particularly, but not exclusively, those that sell products and services to the Russian market.
Read more @International Adviser
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