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.
What should you do if you are an expat and are considering a retirement transfer? Mindful of Brexit’s impending reality, do you make an expat retirement transfer as soon as possible or, fearful of restricting yourself and missing out on any possible opportunity, do you hang on to see what the future holds and wait until after March 31 2019.
It’s hardly a new revelation to state that Brexit has caused uncertainty for British expats. Until the EU and British government reach a final agreement in Brussels, the lives of many expatriates are certainly in a state of limbo.