26 Jul Rosalind Connor in the Financial Times on the Brexit impacts on pensions
Following the referendum decision to leave the EU the Financial Times Money section asked various experts to explain how Brexit will impact the public’s financial life. Rosalind Connor addresses what effect Brexit will have on someone’s ability to draw on or transfer their pension from another EU country.
Rosalind says UK citizens who have built up private pensions in EU zones, can leave their pension pot behind, to pay out when they retire, if they return to the UK.
“At the moment, EU law means they cannot be taxed differently on the pension because they are overseas, but of course that could change post-Brexit,” she notes.
She adds that if anyone is concerned about a EU-based pension pot, they could investigate transferring it to a UK registered pension.
In contrast, future entitlements to state pension following Brexit face far greater uncertainty, Ms Connor says.
Currently, if someone from the UK works in another EU country and pays local taxes towards social security, they will get social security benefits, including contributions towards pensions, as if they were a citizen of that country. “That won’t necessarily apply any more on Brexit,” she says.
Read the full article in the Financial Times here.