The Brexit transition period will end on December 31st 2020, and marks a momentous change for the UK and many Britons. However, a deal has not yet been established, and so circumstances remain slightly uncertain for millions of people. As a result, it has been recommended Britons take the time to examine their financial situation to ensure they will be protected in every instance.
Similarly, it has been recommended for Britons to lock in their mortgage rates, to weather against any fluctuations.
Another element of finances worth considering is a pension income, which is particularly important for people relying on these savings in later life.
Those in drawdown, Hargreaves Lansdown has said, should think very carefully about the amount and timing of the income they take.
Retirees should draw income which is naturally yielded from investments to protect their pots if the market becomes more volatile.
Finally, for those who invest, creating a diverse portfolio is likely to help with the lack of ability to predict what will occur in 2021.
And the company has urged all Britons to use all the tax breaks they can through investment to help with long-term growth.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, commented on the matter.
She said “At the moment, preparing your finances for Brexit is like packing for a British summer holiday.
“You’ve absolutely no idea what kind of climate you’ll be in, or what the environment will throw at you, so you need to plan for every eventuality.
“If there’s no agreement, the Office for Budget Responsibility predicts economic growth could take another hit and unemployment could rise.
“If this comes to pass, interest rates could remain ultra-low for longer, Sterling could fall, we could see more inflation, and the stock market might be volatile.
“However, if we get an agreement, any or all of these things could be kept under control – it would just depend on exactly what deal the negotiators are able to thrash out.
“When the future is so uncertain, it’s difficult to make concrete plans. So it’s worth hoping for the best and making plans for the worst in case.”
There are a number of areas which are worth considering actively when it comes to managing finances.
As a result, some may wish to speak to a financial or pension adviser about more serious decisions.
However, others may choose to speak to Citizens Advice for assistance, or opt to manage the situation themselves.