Given that so many retirees receive their pensions in pounds rather than euros it should come as little surprise that a proportion are struggling to retain their previous level of spending power. For example, a pension worth 655 euros on June 23 is now worth just 555 euros.
As a result many expats in France have had to make the kinds of economical savings that pre-Brexit might have seemed unimaginable, with some even expressing concern about their ability to meet the costs of a comfortable expatriate life in the long-term.
The long view
It is worth remembering that many of the Brexit doom and gloom scenarios predicted by some sections of the Remain camp have not come to pass and that a difficult period of uncertainty and adjustment was always going to be inevitable.
And now that Prime Minister Theresa May has said that she will trigger Article 50 of the Lisbon Treaty by the end of March 2017, it can only be a positive thing that the official two-year Brexit process will soon begin in earnest.
In the meantime there are, fortunately, steps that expats in France can take in order to be properly prepared for what the future may hold. One such step is to apply either for French nationality or a “carte de sejour” residency permit. The latter gives holders the right to remain in France even without the naturalisation status conferred by the former.
Of course, it is also vital that expats seek financial advice regarding their wealth management options, with the value of having effective QROPS arrangements in France never clearer than it is right now.
But perhaps, above all else, it is important that expats don’t become fodder for media scaremongering. Against this background it can be useful for expats to remember why they moved in the first place and to consider whether they are still enjoying the numerous benefits and lifestyle opportunities that are still afforded by residence in France.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
The defined benefit scheme – whereby the employer promises the employee a specified payment upon retirement, the amount of which is calculated based on several factors including the years the contributor has been in the scheme, their age, and their salary at retirement – is no longer viable in today’s world.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.