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.
Blacktower, for Management of your Expat Pension
As a leading wealth management firm with offices across Europe and the globe, Blacktower can help you will all aspects of your finances, including expat pensions such as SIPPs and QROPS. For more information, speak with us today.
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.
As it stands, EU citizens living in the UK are required to apply to the EU Settlement Scheme, which confirms that they are a settled resident of the UK. This has raised concern for many expats, and those living and working in the EU, about how they will be able to prove their identity and claim residency abroad if a no-deal Brexit goes ahead.
The Pensions Regulator (TPR) has recently acknowledged that pension scammers are being caught out and hindered by action from the government, regulators, the Work and Pensions Committee, and the wider industry, but added that vigilance is still needed.