Did retirees get a lucky break from UK election result?
Former Liberal party leader Alexander Downer says Boris Johnson’s UK election win would be good for the economy and, more importantly, your retirement savings.
The former diplomat to the UK had warned that superannuation savings would be damaged if the UK election had delivered a hung parliament.
“The economic policies Corbyn wants to pursue will have a major impact on us because the UK is the second largest destination for Australian offshore investments. There are huge Australian investments in the UK, there are superannuation funds and major corporates who invest very, very heavily there. There will be damage,” he told The Sydney Morning Herald and The Age in a pre-election warning.
Australian super funds, such as the nation’s largest, AustralianSuper, are heavily invested in UK property and infrastructure. Britain is also one of our largest export destinations.
“If the Corbyn government comes in with its extremely radical economic agenda, a kind of Venezuelan-style, Maduro-style economic agenda, very South American economic agenda, and unfamiliar to any of us here in Australia – I think you would expect a very substantial deterioration in the British economy, and as a result of that, that would put at risk the investments we have … made in the UK,” Mr Downer told the National Press Club in Canberra.
Mr Downer stressed the importance of certainty over Brexit to Australian investors and warned that a second referendum would only have muddied the waters.
How do you feel about Brexit? Do you think the UK election result is a good one?