Brexit and Pensions
The UK formally left the European Union (EU) on Friday 31 January 2020.
The Withdrawal Agreement agreed between the UK Government and the EU sets out the terms of the UK’s withdrawal from the EU. It provides for a transition period lasting until 31 December 2020.
The UK Government has confirmed that no changes to State pensions for UK nationals living in a European Economic Area (EEA) state or Switzerland will take place before 31 December 2020.
UK nationals and the UK State pension
The Government has confirmed that those UK nationals living in an EEA state or Switzerland by 31 December 2020 will continue to receive their State pensions with full annual increases.
For those who move to the EEA or Switzerland from 1 January 2021 onwards the rules on entitlements will depend on the outcome of the UK Government’s negotiations with the EU.
The latest information can be found on the gov.uk website here.
Pensions and benefits paid by an EEA state or Switzerland
Living in an EEA state or Switzerland by 31 December 2020
If you are paid a pension or benefit by an EEA state or Switzerland, check with the organisation that pays you to find out what you will need to do to continue receiving any benefits or pension after 31 December 2020.
For UK nationals there is country specific guidance on the gov.uk website here: country specific guidance for UK nationals.
Moving to an EEA state or Switzerland from 1 January 2021
If you move to an EEA state or Switzerland from 1 January 2021 and you are not covered by the Withdrawal Agreement, your entitlement to a pension or benefits from that country will depend on the outcome of negotiations with the EU.
Annuities and personal pensions from a UK pension provider
Your pension provider should have made plans to make sure you can still get payments from your annuity or personal pension following the UK leaving the EU.
Your pension provider should contact you if they need to make changes to your annuity or pension or the way you are paid. If you have any questions, contact your pension provider.
UK workplace pensions
UK law allows for workplace pensions to be paid overseas. The UK Government does not expect this to change because the UK has left the EU.
If you have any questions, contact your pension provider.
If your workplace pension is paid into a UK bank account, your bank should contact you if they need to change the way you receive your pension because the UK has left the EU.
Information for EU nationals who do not retire in their home country
The EU’s website has information for EU nationals who do not retire in their home country.
Information about State pensions is here.
Information about workplace and private pensions is here.
Where can I find out more?
If you need more information, please contact us. A pension specialist from our team will be happy to help with whatever pensions-related question you have. Our help is always free.