UK

PENSIONS WARNING: MPs told no-deal Brexit could see expats left with no money

By Matt Ford Thursday, 26 July 2018 18:12 9 comments
"PLAUSIBLE": Could UK pensions become illegal? "PLAUSIBLE": Could UK pensions become illegal? Shutterstock

MPS have been warned Brexit could make it illegal to pay pensions to Britons living abroad.

It comes after the Association of British Insurers (ABI) told parliament’s Exiting the European Union Committee it is “plausible” that expatriates could be left with no money in the wake of a no-deal exit from the European Union.

Committee chairman Hilary Benn asked ABI director general Huw Evans: “They might find that they couldn’t be paid their pension – is that what you are saying?”

And according to UK media reports Evans replied: “That is a perfectly plausible risk in the future if no agreement is reached in some countries of the EU.”

But he continued: “It’s important to note here to avoid panic that each country of the EU has slightly different arrangements around this.

“We’re not saying this is a blanket risk across all 27 but it is a classic risk of the type that requires regulators with political blessing to sort the issue out themselves.”

Evans also told parliament that holidaymakers would lose their right to carry an EU health insurance card, raising the likelihood of them having to pay more for cover while abroad.

He added it would also be unlawful to pay claims in the EU, risking millions of contracts.

“If a claim comes in two years down the line, in a country like Germany, their lawyers will be advising them you can’t pay the claim,” he said.

The warnings came as Prime Minister Theresa May’s cabinet continues to have its controversial White Paper accepted by European lawmakers.

Minister of the Cabinet Office David Lidlington this week visited Paris for talks with his French counterparts, while Foreign Secretary Jeremy Hunt flew to Berlin.

Comments (9)

  1. mike

at the moment no one knows anything its all bul---t

 
  1. John Price

Please correct me if I am wrong but aren't the Brits the 3rd largest non-Spanish community in Spain, behind the Romanians and the Morrocans. Thus, despite the exchange rate, their spend must be not inconsiderable?

  Comment was last edited about 2 weeks ago by Karl Smallman Karl Smallman
  1. Mike Giles

I cannot understand why we british remain so arrogant as to think that all international economies are dependent on the british spending, I see the Spanish economy growing against a backdrop of a dwindling British Expat community!! Also there a...

I cannot understand why we british remain so arrogant as to think that all international economies are dependent on the british spending, I see the Spanish economy growing against a backdrop of a dwindling British Expat community!! Also there a re far more French, Dutch and Belgians holidaying on the costas these days, British Money and Investment is no longer the Aladdin's lamp it used to be Wake up to the realism that it is the UK that is going to be MOST severly Impacted as a result of Turkey Brexit.

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  1. John McLean

What a load of rubbish. Another headline that bears no resemblance to the truth purely sensationalism

 
  1. Annie

You can always rely on the insurance companies to try to go for a money grab. Presumably the government pension will still be paid as it is for all expats and as for any private pensions, existing pensioners will have purchased an annuity THAT...

You can always rely on the insurance companies to try to go for a money grab. Presumably the government pension will still be paid as it is for all expats and as for any private pensions, existing pensioners will have purchased an annuity THAT THEY OWN. To take that annuity back is theft, plain and simple.

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  1. Dee

This only applies to people with Private Pensions because the private pension companies will lose their Financial Passporting rights same applies to any other investments or insurance policies e.g Car Insurance, health Insurance etc.
Government...

This only applies to people with Private Pensions because the private pension companies will lose their Financial Passporting rights same applies to any other investments or insurance policies e.g Car Insurance, health Insurance etc.
Government Pensions will not be affected. Those who have their private Pensions paid into a UK Bank account and then transferred to a EU bank are likewise not affected.
The bigger problem for ALL of us will be that the Pound will plummet and we will once again lose a bloody big chunk of our incomes.

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  1. Geoff Vinno

This is another fine example of 'Project Fear'. Ask yourself the question ' how do expats of none EU members nations get their pensions paid?' The answer is that they do and this is a load of old tosh to frighten Brits. If we have a 'no deal' I...

This is another fine example of 'Project Fear'. Ask yourself the question ' how do expats of none EU members nations get their pensions paid?' The answer is that they do and this is a load of old tosh to frighten Brits. If we have a 'no deal' I doubt that anyone will notice! As tourism is 20% of the Spanish economy and the Brits contribute 60% of this amount, is the Spanish government going to say we don't want you or your money!.I think we all know the answer to that one.

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  1. Ian

Nothing surprises me anymore regarding May's Brexit. It's a complete and utter shambles and already costing a fortune. As for us pensioners not able to receive our pensions in the event of a no-deal, I shouldn't worry too much as according to...

Nothing surprises me anymore regarding May's Brexit. It's a complete and utter shambles and already costing a fortune. As for us pensioners not able to receive our pensions in the event of a no-deal, I shouldn't worry too much as according to other reports we will all be returned to the UK anyway in the event of a no-deal.
Time to scrap this whole sorry mess !

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  1. John Price

What utter nonsense-the only reason why the locals want us here in Europe is for our money spend, so cutting off that money supply would soon see many businesses go under!!!!

 
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