Will Brexit affect my pension?
If you are currently one of in excess of 220,000 people living overseas with a UK pension, you will be pleased to hear that you will continue to receive your pension whatever the outcome of Brexit.
Your concern should be what your pension will be worth as time goes on. The UK currently has an agreement with the European Economic Area (including EU countries as well as other countries) under which residents living abroad in these countries see their state pension rise at the cost of living. UK residents living in such countries therefore see their pensions rise annually in line with the triple lock (i.e. by the higher of average earnings, inflation or 2.5%), as they would in the UK.
The intention is certainly for this to continue, but with a ‘no deal’ Brexit on the horizon there is a possibility that the UK Government may need to liaise with each individual country to reach new agreements. The only alternative is that UK pensions would continue to be paid to those living overseas, but the pension level would be frozen. This is currently the case for some UK pensioners living in Canada, for example.
A no deal Brexit without any agreement would also have a bearing on private pensions. Any UK insurance company paying an annuity to a UK ex pat in Spain, for example, would no longer be authorised to do so. Clearly investment organisations need to come up with some sort of alternative to get around this, such as the creation of a subsidiary within the EU through which they could keep paying into a European bank account.
If these issues are likely to affect you, it would be advantageous for you to contact your investment organisation and check what your pension provider plans to do and whether your payments will continue in the future.
The Association of British Insurers is clearly investigating matters carefully and it feels that cooperation between the UK and EU regulators could rectify the issue and allow people living abroad to continue drawing private UK pensions post-Brexit.
The UK Government has said that it will give temporary permission for financial firms in the European Economic Area to pay people in the UK post-Brexit. For example, a Spanish pensioner living in the UK or someone who has worked in Europe but intends to retire in the UK will not have the same problem as a British ex pat living in Europe – at least not in the short term.
If you have retired and you plan to remain in the UK you may feel that Brexit will not affect you. However, this may very well not be the case as the impact of Brexit on the UK economy and UK pensions policy could affect the value and sustainability of UK workers’ pensions.
Any fall in interest rates or company profits could put pressure on employers’ final salary schemes. Other workplace pensions (known as defined contribution schemes) depend on the performance of investments. Any fluctuation in the stock exchange could affect the value of pension pots and the retirement income annuity that can be bought with them. A considerable proportion of pension savings is of course invested in secure government bonds as individuals approach retirement, but the value of these would also be relevant.
Anyone with a pension pot can now access it in different ways from the age of 55, which has meant that many people have left their savings invested for longer than they would have done normally. However, if investments are hit and people receive a smaller payout in the short term, they may have to work for longer.
For further reading on this subject, we recommend this article from the BBC.
These notes are intended for information purposes. They are not a full statement of the law and should not be relied on as specific legal advice.
Not so safe at work - compensation for an accident at work
New organ donation law: giving you control
Running a business from home
Have nude photos of you or your teenager been posted online?
Landowners’ rights and the Electronic Communications Code
Building in your back garden
Christmas is a time for giving (and inheritance planning)
Buying the freehold of your leasehold house
Redeveloping an empty pub for commercial use
Why it takes time to obtain the Grant of Probate
Social Media: The unconscious privacy threat
Is your reputation being threatened?
Making a will after your spouse or partner has died
Interns celebrate completion of internship at solicitors
Selling your home in a flat market, some top tips
Claiming compensation for a serious road traffic accident
New Media and Communications Court list reflects surge in internet defamation claims by Laura Baglow
Has your personal information been shared without your permission?
Planning your escape to the country, what you need to consider – part 2
Government consultation on new national model for shared ownership
Choosing a partnership structure
Planning for what happens when you die by Deborah Adams
Changes to legislation could offer protection for tenants in the private rental sector
Move to the country - Part One
The risks of DIY probate
Will your septic tank still be legal in January?
The death knell for ‘kiss and tell’?
Making a will when you retire
Selling your property at auction
Not looking so good - your guide to compensation for botched non-surgical cosmetic procedures
New threshold of seriousness in defamation proceedings
Legal considerations when building a granny annex
Choosing the right person for your power of attorney
Formal Interviews - Do you need legal representation?
Privacy rights and aerial images
Trustees’ duty to give information to beneficiaries
Five problems with a leasehold property
Taking your first commercial lease
Is your organisation protected from employee social media legal risk?
Have you been targeted by negative social media posts?
Farmers be alert when being inspected
Help for House Sellers?
Don’t let your digital assets end up in a digital grave
Valuing an estate for probate
Development proposals and your local authority search
What can you do if your child is injured in a serious accident
NetRights welcomes new protection for social media users
SHOULD I GET A LAWYER FOR A SPEEDING OFFENCE?
Supreme Court recognises that social media is a “casual medium” in libel battle
Choosing the best conveyancer who is right for you
Making a will after a second or subsequent marriage
Option or promotion agreement – which is best for landowners?
Anonymous pub and restaurant online reviews leave a bad taste
Have you had an accident involving a horse?
Help to Buy – beware of some cracks in the structure
Understanding Lasting Powers of Attorney
Changes to Energy Performance Certificate for Landlords
Had a cycling accident? Your route to obtaining compensation
New year, new home: tips to sell your home in the New Year
Tax Planning for your inheritance
Hearing loss: when your employer may be liable
Buying a home for your retirement, five things you need to consider
Farmers plan to diversify after Brexit
Ministers press ahead with probate fee shake-up - reports BBC News
Botched dental treatment? You may be entitled to compensation
Why a Health and Welfare Power of Attorney is a good idea
Will the new charge on building developments in Cornwall affect you?
Energy Performance Certificates – Do They Matter?
HMRC Challenging Stamp Duty Land Tax Payments
Ben Mitchell qualifies as a solicitor
The potential implications of Brexit on employment law
Appointing a guardian for your children
Houses in multiple occupation – new rules from October 2018
New Agriculture Bill published
Will Brexit affect my pension?
Dreaming of a holiday home? Sort out the legals before putting your feet up
Lasting Power of Attorney by Deborah Adams
Settled status after Brexit by Alexis Hager
How to choose an executor to administer your estate when you die
How overage agreements can boost profits from your land
Top tips for first-time buyers
How Could Brexit Affect My Farm?
Wills & Succession in Spain by Deborah Adams
Brexit – an international and local view by Alexis Hager, Litigation
Capital gains tax - important facts for non-residents of the UK
Buying a home: the importance of making sure the seller is entitled to sell
Changing a will after someone has died: it is possible and it could save you money
Your responsibilities when you have people working in your home
Sad passing of Battle of Britain pilot who served with Parnall family member
Considerations when buying a heritage property
Disciplinary proceedings at work: guide for employers
Employers should have a disciplinary process in place, but just following this may not be enough to avoid falling foul of the law and exposing yourself to the risk of an employment tribunal claim.