The value of pensions based in Scotland would go through a period of uncertainty following a Yes vote in the independence referendum, Aegon UK chief executive Adrian Grace has said.
Mr Grace said: “The value of a pension or investment policy is based on the funds it invests in, and the funds we offer to customers are invested in companies across the UK and globally.
“While the value of stocks and shares in the UK and possibly beyond might be affected by Scottish independence, there will be no different or additional effect on investments as a result of them being associated with a Scotland-based life company, fund or fund manager.”
He added that there would be a “period of uncertainty” but that, with the Scottish government proposing an independence day of 24 March 2016, changes would not “happen overnight.”
But Jamie Smith-Thompson, managing director of Kent-based Portal Financial, said: “Under a Yes vote, pension savers will be at the mercy of unpredictable exchange rates, a new regulator and most likely different rules and increased costs that will have to be funded either by members or their scheme.”
He added that pensioners living off an annuity or their income could see the value of this “change dramatically” because of foreign exchange movements.
Greg Kingston, head of marketing and proposition at Suffolk Life, warned that independence would “see all Scottish self-invested personal pension properties classed as non-standard”.
He added that there were “increasing signs that Sipp providers are preparing to charge more for non-standard assets.”
In a 135-page report, Pensions in an Independent Scotland, the Scottish government proposed to “keep the best of the existing state pensions system” but make improvements, including a commitment to apply the triple lock to the single-tier pension, the basic state pension and guarantee credit.
The Scottish government also pledged to continue with the roll-out of auto-enrolment and proposed to establish a Scottish equivalent of the National Employment Savings Trust.
Adviser view
Allan Maxwell, director of Glasgow-based Corporate Benefits Consulting, said: “Individuals in the UK also have funds invested overseas, so we are used to managing currency risk. With the state pension, the existing system will be mirrored, but the issue is whether an independent Scotland could afford to pay for this.”
