Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Brexit Would Make Expat Pensioners £50,000 Poorer

Source: Expatriate Healthcare - Sun 3rd Jul 2016
Brexit Would Make Expat Pensioners £50,000 Poorer

British retirees who relocate to Europe could have their state pensions reduced by £50,000 over the next 20 years if the UK should go ahead with plans to leave the EU for good.

Currently, any individual who retired to a country within the EEA (European Economic Area) has their state pension increased every year under the ‘triple-lock’ system. This means that retirees benefit from pensions rising by the higher of wage or price inflation, subject to a minimum of 2.5%. However, in the event of the UK leaving the EU, the UK could have to negotiate with each individual country within the EU to establish individual reciprocal agreements if annual state pension increases for expats were to remain.

If failure to reach an agreement with individual countries was the outcome, British expats could potentially suffer from frozen pension payments and annual increases could cease. This scenario is currently reflected in Australia, Canada and New Zealand, where British state pension payments to expats are already frozen.

Investigation done by investment shop AJ Bell suggests that for an individual aged 65, in receipt of the £155.65 flat rate state pension, the loss of annual increases would cost around £50,000 over 20 years. Tom Selby, senior analyst at AJ Bell states: “Brexit would throw the position of expat pensioners, or those who wish to retire to Europe, into doubt.”

“While some believe the Government will be able to negotiate protections for expat pensioners post-Brexit, it is worth noting that the UK has not arranged a similar deal with a non-EU country since 1982, primarily because of the costs involved.”

Back in February Baroness Ros Altmann, the minister for pensions, said: “These questions would need to be answered as part of the process of negotiating the UK’s exit if there is a vote to leave.”

Frustrations are bubbling amongst expats living abroad, particularly those who have lived in a country for more than 15 years. Under current rules, expats who have lived away for the UK for this period of time are unable to vote in the referendum, despite Brexit having potential significant impact on their lives.

.

Under the current system. British pensioners in the both the UK and Europe benefit from the certainty of a basic state pension income protected through the triple lock system. A Brexit would be a daunting prospect for millions of pensioners who have worked hard all their lives and deserve security in their retirement.

Recommended Reading :

* British Ambassador issues calming message to Expats

* Brexit will leave 2 Mln Brits in legal limbo

Comment on this Story

 
Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs

 
When shopping for bodyjewelrytips, never buy anything that has nickel. The best type of material is the steel, titanium, wood, anodized gold or gold. Most nickel products will rust and may infect your ear. If you have pierced the naval or eye, you do not need to worry, as that is the most versatile part of the body. You can wear rings, straight, curved or fancy and captive beads. There are many leading body piercing jewelry that offer some of the biggest collection at very affordable price. In regard to shopping, always go to a wholesale shape as that is the sure place of getting any type of body piercing jewelry. The only thing that you need to be careful about is the material used to make the jewelry. There are instances when body piercing might go wrong and the result is an infection. In order to avoid this, make sure that the person doing the piercing is qualified to do so. After piercing is done Bodys piercing trends, you should keep the area sterilized and clean. Use warm water to wipe dirt. Never use spirits as they will corrode the area resulting to a wound which might cause an infection.