Currently, as a member of the EU, the UK has an agreement in place with the European Economic Area guaranteeing British citizens residing in the EU the benefit from any increase in the State Pension made in line with the cost of living; there have been fears, largely expressed in the more sensationalist elements of the press, that this will come to an end at the time of Brexit.
However, while speaking at the conference McVey told her party that expat pension rights were not at risk and that expats living in the EEA would receive the same entitlement to the “triple-lock” State Pension increases as residents in the UK. Effectively, this means that pensioners receive a rise in their benefit of whichever is greatest: the earnings rises, price rises or 2.5 per cent.
However, it was notable that McVey failed to provide similar reassurance over the future of private expat pensions, which, in the light of some recent ill-advised comments from the Association of British Insurers, was something of a missed opportunity.
Pensions in the spotlight
McVey did take steps to tell event attendees and the wider press that the industry-led Pensions Dashboard project would continue to roll out, providing better and easier management of pensions and pensions data while she also praised auto-enrolment’s moves to ensure universal coverage.
It is hoped that Pensions Dashboard will enable retirement savers to put their pension pots in one place, allowing them an easier path to retirement planning.
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British expats with regular savings could soon have to make applications for long-term residency visas if they wish to begin living in the European Union following Brexit, according to sources within the Home Office.
As an expat myself, I have been keeping a close eye on the news relating to the British people’s decision to seek an exit from the EU. Our newspapers are filled to the brim day in and day out with commentary from the ‘Brexiteers’ and ‘Remainers’. Everyone seems to have an opinion as to what will take place, how it will look and what actions you need to take – but the basic facts at this moment in time are that ‘we don’t know’ – it is all speculation.