Pensions - Articles - Brexit no deal could leave pensioners without pensions


In the event of a no-deal Brexit, UK pensioners living abroad in Europe or those with EU-pension entitlements may lose access to their pensions. This stark warning came from the government when discussing the effect a no-deal could have on the banking, insurance and other financial services sector.

 According to the government, the problem arises due to the UK losing access to the EU's passporting regime in a no-deal scenario. Under the current regime, UK firms can make payments into bank accounts in the European Economic Area (EEA) and the same applies in the opposite direction.

 Following a no-deal, UK firms based in the EEA that currently 'passport' into the EEA, will be unable to make payments to the EEA, while EEA-based firms will be unable to pay into UK bank accounts. So, for those UK pensioners living abroad, the pension payments they receive from the UK would not be able to be paid to them.

 Following this bleak announcement, Stuart Price, Partner and Actuary at Quantum Advisory, looks at how this could be avoided.

 He said: “Firstly, it’s important to note that the government maintains that a no-deal outcome is unlikely, so everything in its notes about what may or may not happen is purely speculative.

 “According to the government they are doing everything in their power to minimise disruption post 29 March and this includes implementing a Temporary Permissions Regime (TPR). The TPR will allow EEA firms that currently passport into the UK to continue to do so until 2022 while they apply for full authorisation from UK regulators.

 “However, if you are living abroad and are receiving a UK pension, I would recommend that you keep a close eye on developments.”

  

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.