Many thousands of British Expats living across the EU could face a financial struggle unless negotiators on both sides of the Brexit process can do a deal to let their pension payments continue unchanged after Britain leaves the European Union.
At present it is suggested that British and EU negotiators have yet to discuss what will happen to cross-border financial services once the UK leaves, and pension companies are left simply hoping for a resolution.
This matter was raised again by UK Parliament Treasury Committee chair Nicky Morgan MP, who explained that 38 million people living in Europe could be affected – including those many British Expats with personal pensions in the UK.
Pension payments from these schemes are currently allowed via the ‘passporting rules’ process which allows companies that are regulated in one EU country do business in other European countries as if they were regulated there.
Unless passporting continues after Brexit, pension companies will lose this advantage and may not be able to pay customers in EU countries by law.
Thousands of British expats are potentially caught up in this passporting problem – the estimate is between 250,000 and 300,000.
The UK government has promised to let EU financial companies pay their pension customers in the UK after Brexit and Morgan explained how vital it is that policyholders in Europe with UK based-pensions are given the same level of certainty that their pension policies will continue to be serviced after Brexit. It calls for a speedy resolution.
UK Insurance companies are currently concerned they could be found in breach of their contracts with customers if they cannot continue to make payments to them after Brexit and want to avoid a scenario where policies must be transferred to EU subsidiaries or partners to facilitate continued payments in a legal fashion.
Speak to an Expat Pension Adviser if you have concerns
If you have Pension Assets left in the UK and are concerned about the continued uncertainty around your future access to these funds if you remain abroad, then we invite you to contact us to speak with one of our Expat Pension Advisers to find out what options may exist for you to protect your retirement. Contact Us Today.