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UK Brexit: What does it mean for investors and super?

UK Brexit: What does it mean for investors and super?

Australian investors are concerned that the UK’s departure from the EU will have ongoing repercussions for their superannuation portfolios.

The United Kingdom (UK) has voted 52% to leave the European Union (EU) in what has become known as 'Brexit', compared with a vote of 48% to remain.

The move was a surprise, as a majority of analysts believed the vote would be to Remain.

Markets dislike uncertainty and the move in the UK has left investors wondering what happens next.

While the initial market reaction was generally negative, it can be prudent to allow any shocks to subside before making any decisions about your investments. The entire process for the UK to exit will take two years to execute.

It is important to understand that there are a number of scenarios that could eventuate regarding the political, economic and investing landscapes.

The impact for investors

Australian investors are concerned that the UK’s departure from the EU will have ongoing repercussions for their superannuation portfolios.

When it comes to super, the short-term ups and downs of the market should not cause you to panic or take any rash action. Super is a long-term investment designed to generate sufficient money for your retirement.

While volatility is always a consideration throughout the entire time you invest in super, investing in a diversified investment portfolio can be a way to help manage this.

The closer you are to retirement, the more focused you might be on investing in a portfolio that has less fluctuations in returns, while if you are younger, growth could be more important for you.

The main thing to remember is that super is a long-term investment and strategies often need to change throughout the years you are building it in order to make the most of your current situation and the investing environment.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Past performance is not indicative of future performance.