In Focus News & Insights

Representatives of UK nationals who are uncertain as to what to do with their expat regular savings assets have called on MPs to take urgent action so that they do not have to go through a period of extended limbo while waiting for Brexit negotiations to be finalised.

The list of concerns is becoming increasingly longer, particularly now that Prime Minister Theresa May has indicated that she may pursue a hard Brexit, with pension uprating, healthcare and expat regular savings at the forefront of the issues currently challenging British expats living in the European Union.

The Pensions and Lifetime Savings Association has issued a strong warning against government proposals to raise the state pension age to 68 (with the possibility of being raised higher to 70). It has said that such a scenario would create significant problems – an “unacceptable detriment” – for those with low life expectancy.

The statement comes in response to a report released by the Independent Review of the State Pension. The review was led by former CBI director general John Cridland.

British expats who are uncertain what they should do regarding their regular savings plans are hopefully reassured by Theresa May’s announcement that she wishes to secure the status of expats in the European Union at an early stage during the Brexit negotiations.

However, the Prime Minister has refused to divulge further details of the Government’s strategy for negotiating the UK’s formal exit from the EU, leaving expats without any further clarity regarding their future options – for example in respect of education fee planning and international pension planning – in relation to their expat regular savings.

There has recently been some worry over the future of the “triple-lock”, a measure put in place to help protect pensions in case of a steep rise in inflation (November 2015 saw inflation reach its highest level in two years).

So, what is the triple lock and what would its removal mean for pensioners across the UK?

France has long been a favourite destination for expats. But what is it that’s so alluring about the country? Two recent expat surveys have highlighted a number of reasons behind why some expats chose to move to France, looking at all the main perks that are most commonly experienced. One key positive mentioned is the overall improved quality of life, with almost half of the respondents mentioning it as their main motivation behind moving.

In the HSBC Expat Explorer report that, released earlier in 2016, France placed ninth out of 45 countries for the overall experience, and an impressive fourth place for quality of life – fairing far better than the UK.

Advice on buying overseas property from financial expert Simon Conn:

After the “shocks” of 2016, how will the overseas property market be affected in 2017 and will the most popular areas still be of interest? Although the Trump and Brexit decisions did have an initial effect on clients potentially purchasing an overseas property – where some people have deferred until the markets have settled down in the USA after the Presidential inauguration and Article 50 is finally implemented – others have seen this as a good time to look for opportunities and bargains available in the market.

Under new plans proposed by the Government, and included in Chancellor of the Exchequer Philip Hammond’s first Autumn Statement, British expatriates with offshore pensions will face a higher income tax rate.

The plans say that those with QROPS (qualifying registered overseas pension schemes) will be subject to the same tax treatment as those with UK pensions, meaning that they will pay 100 per cent instead of their current 90 per cent. There will also be further measures taken to make setting up a QROPS more complex in the future.