Independent News has written an article entitled – No-deal Brexit will make it ‘illegal’ to pay pensions to retired British expats living in EU, MPs told. In my opinion its just a move to scaremonger expats – paving the way for more scammers.
There are expats all over the world claiming their pensions. Why should Brexit make a difference to those in the EU?
The problem with scaremongering is like this: it paves the way for the pension vampires to strike with ease. Innocent expats, who hold private or occupational UK pensions, will read this kind of alarming report and could be sent into a flurry of panic – reaching for the nearest offshore deal. Or rather, offshore scam.
This type of report creates hordes of expats who don’t really understand what Brexit means (does anyone?) to their future. It creates an easy target for unqualified advisers working for the unregulated firms to strike while the iron is hot. A quick transfer, made in haste, the small print left unread – and the victim can spend the rest of their life regretting a bad decision.
Much in the same way as the scammers crowded outside the gates of British Steel factories – preying on the workers who really did not understand what was happening to their pension fund or what was the best decision to make, this report gives the scammers a new angle on which to work.
It would, however, seem that Huw Evans doesn’t know ‘who’ will be affected by this. His statement lacks any solid facts as to what countries in the EU could enforce this. Huw states there are 38 million people that could be affected. However, he fails to explain exactly why or how this would happen.
If you are an expat, with a UK pension, please do not rush into transferring your pension into an offshore arrangement. If you are interested in transferring your pension, be sure to consult a regulated advisory firm and take advice from a fully qualified and registered adviser.
Make sure you ask all the right questions, know all the details about where your pension will be going and above all, if in doubt, do not make the transfer. Pension scammers lurk all over the world – do not be their next victim.
I think that the ABI is referring to insurance contracts which are recognised throughout the European Economic Area but which will, like UK driving licences, become void once the UK falls out of the EEA (not the EU) with no transitional or long term agreement. Occupational (paid from schemes) or state pensions (covered by social security agreements) should not be affected. Cross-border insurance contracts post-EEA were raised by Nicky Morgan, Chair of the Treasury Committee but I can’t find an answer from the Treasury.
But the ABI does not understand the process which is why it comes across as scaremongering. ‘No deal’ is not the issue although why anyone would consider this as a serious option beggars belief. A Free Trade Agreement will be just as damaging as ‘no deal’ because it does not cover services, 80% of the UK economy. And all that is being negotiated now is the Withdrawal Agreement. The negotiation about the long term relationship can’t start until next March, with about 20 months to conclude it and the UK has not the slightest idea about what relationship it wants beyond childish fantasies and wishful thinking.
It is the foolish decision to leave the EEA (which voters were not asked – most UK voters would not know the EEA from a hole in the ground) that is causing this uncertainty and all sorts of potential problems in energy, medicines and health care, transport, food, agriculture and the horse racing industry, not to mention the Irish treaty. Maybe a quick fix will be done – and that’s a lot of fixing, but ‘all right on the night’ is no way to run anything.