Quote from an article in the Telegraph called Brexit and Pensions by Sam Meadows.

“Retirement savers will have to keep an eye on state pension payouts, the value of the pound and consumer protections now the country’s exit from the European Union is imminent.

Barring one of the most stunning political turnarounds in history, Brexit now looks almost certain to happen on Jan 31. But the question on most people’s minds will be what it all means for them and their money.

Frozen’ pensioners
This is a problem which has long afflicted those who have retired to sunny spots like Australia.

Those who claim a state pension and live in Britain are protected by the triple lock which ensures their payments increase each year in line with the highest of price inflation, average wage growth or 2.5pc.

This protection does not extend to retirees living overseas. In the EU, the Government uplifts payouts, essentially replicating the triple lock, but this does not extend further afield, leading those who live in affected countries branded “frozen pensioners” – because their payments are frozen.

Sir Steve Webb, a former pensions minister now working at insurer Royal London, said while EU uplifting has been guaranteed for three years, there is no certainty over whether this will continue past that point, potentially leaving retirees in Spain sweating over their paella

Tom Selby, of AJ Bell, provider, said: “It’s worth noting that the UK Government committed to uprating the state pension every April until 2022 if you live in an European Economic Area state or Switzerland in September last year. Furthermore, it has already agreed a reciprocal arrangement with Ireland which protects social security rights when the UK eventually leaves the EU.

Regulatory changes
There could also be some changes to the protections offered to savers if Brexit allows Britain to “take back control” of its financial regulations.

Currently, a good deal of domestic regulatory policy originates from the EU and is effectively gold-plated into British law. Mr McPhail said that, following Brexit, it would be up to the Government to decide whether this practice would continue.

Need a no nonsense, highly informed talk? contact Mark Beresford IFA rated in Top IFA’s in the Times and Telegraph 2019/2020

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