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More bad Brexit news for long stay expat pensioners
| Published: | 23 Aug at 6 PM |
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British expats most at risk as regards their pension payments post-Brexit are those who’ve worked long-stay in Europe.
Many British expats who’ve worked in Europe long-term and built up pension pots now held in UK bank accounts are most at risk of being unable to access their funds if a hard Brexit results. The reason behind the warning is that, according to EU pension rulings, cross-border funds can only be paid into an EU-registered bank account. At the present time, pensioners who’ve worked in EU member states and are now living outside the European Union are forced to open an account with an EU-based bank in order to gain access to their pension pots.
On 30 March next year, the UK will become a ‘third country’, fuelling the risk that former and current expats using their UK bank accounts for pension receipts will find their payments are cut off. The bad news came as part of the government’s first No Deal contingency plan, announced by the Brexit Secretary last on Thursday night, with the document adding that ministers are ‘braced’ for lost access to pension payments for British pensioners living in the European Union. In another leaked document, the Treasury will admit the strong possibility of financial chaos on April 1 due to the loss of passporting rights.
Additionally, the No Deal plan will immediately and automatically recognise European standards on medical equipment and drugs in order to prevent disruption to the National Health Service. However, anti-Brexit campaign groups are less than impressed, saying it beggars belief that, over two years since the referendum and in spite of seemingly endless negotiations, the government are now speechifying and publishing predictions about their plans for a no-deal exit.
Many British expats who’ve worked in Europe long-term and built up pension pots now held in UK bank accounts are most at risk of being unable to access their funds if a hard Brexit results. The reason behind the warning is that, according to EU pension rulings, cross-border funds can only be paid into an EU-registered bank account. At the present time, pensioners who’ve worked in EU member states and are now living outside the European Union are forced to open an account with an EU-based bank in order to gain access to their pension pots.
On 30 March next year, the UK will become a ‘third country’, fuelling the risk that former and current expats using their UK bank accounts for pension receipts will find their payments are cut off. The bad news came as part of the government’s first No Deal contingency plan, announced by the Brexit Secretary last on Thursday night, with the document adding that ministers are ‘braced’ for lost access to pension payments for British pensioners living in the European Union. In another leaked document, the Treasury will admit the strong possibility of financial chaos on April 1 due to the loss of passporting rights.
Additionally, the No Deal plan will immediately and automatically recognise European standards on medical equipment and drugs in order to prevent disruption to the National Health Service. However, anti-Brexit campaign groups are less than impressed, saying it beggars belief that, over two years since the referendum and in spite of seemingly endless negotiations, the government are now speechifying and publishing predictions about their plans for a no-deal exit.
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