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.
The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. Arc Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.