Could a no-deal Brexit really hit expat pensions?
There have been reports that pension payments to British expat pensioners may become illegal if the United Kingdom leaves the European Union without striking a deal. This information started with the Association of British Insurers, and is now being asked of MPs as Brits look for assurances about the security of Britons living abroad.
The claim is that pensioners whose payments are made to bank accounts in the EU countries they reside in could find themselves unable to receive those payments after a no-deal Brexit. The director general of the trade association, Huw Evans, said that this is a “perfectly plausible” possibility in certain EU countries. And when asked by Labour MP Hilary Benn if this would mean they would be unable to receive their pension, he said “yes”.
Calls have been increasing around the United Kingdom for a so-called ‘People’s Vote’ on any final Brexit deal; a cause being championed by Labour peer Andrew Adonis. Referring to new Brexit secretary Dominic Raab, he labelled this threat to the pensions of expats “daylight Raab-ery”, claiming that the Tories had already betrayed pensioners prior to the last general election, and their current Brexit strategy is doing it all over again.
Expat financial security
Of course, both the UK and the EU have a mutual interest in finding a resolution to this problem to achieve an orderly Brexit transition. But the threat of this issue has existed since 2017, so it is surprising that it hasn’t been adequately addressed in Brexit strategy by now. As the pressure mounts to guarantee the financial security of expats, there is likely to be some kind of progress on a strategy to resolve this issue in the near future, but for now, you may want to focus on what strategies you can put in place for yourself.
No-deal Brexit & pensions – where to find out more
With professional financial advice from BGA, you can keep your financial future in your own hands and look forward to a prosperous retirement. BGA offer a flat fee for their services, so you won’t get any nasty surprises down the line, and they offer quarterly reviews of investment portfolios so you can feel assured that your money is working for you in the best way possible.