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Brexit could wipe billions off UK pensions

London - A decision by Britain to leave the European Union next month could leave pensioners as much as £300bn worse off, the Treasury said in its latest warning about the financial and economic consequences of a so-called Brexit.

An exit from the 28-nation bloc risks fueling a rise in inflation, turmoil in financial markets and a drop in asset prices that could strip between £170bn and £300bn from the total assets held by those over 65, according to the analysis, published late on Thursday.

"Pensioners rely on economic growth for their security and stability, whereas leaving the EU would mean huge uncertainty," Pensions Minister Ros Altman said in an interview with BBC Radio 4 on Friday. "All serious economic forecasters agree" that "leaving will damage our economy," she said.

The Treasury has been criticized by Brexit campaigners and some analysts for overstating the consequences of Britain leaving the EU amid accusations the government is playing on voters’ fears to keep the UK in the bloc. The referendum, now less than four weeks away, has split the ruling Conservative Party in two in a debate that’s become increasingly acrimonious, with accusations of smear tactics from both sides.

“This is an utterly outrageous attempt by the government to do down people’s pensions,” former Work and Pensions Secretary Iain Duncan Smith said in a statement emailed by the Vote Leave campaign. He said retirement savings face threats from EU plans to harmonize pension regulations and proposals for a financial-transaction tax.

The Treasury has argued over the past few days that an exit from the EU would spark a yearlong recession, cause hundreds of thousands of job losses and wipe as much as a fifth off UK house prices.

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