Brexit Withdrawal Agreement Pensions: What You Need to Know
As the United Kingdom (UK) leaves the European Union (EU), one of the most significant issues is the impact to pensions. Therefore, it’s important to understand what the Brexit Withdrawal Agreement means for your pension. In this article, we will examine the details of the withdrawal agreement and how it will affect UK citizens’ pensions.
What is the Withdrawal Agreement?
The Withdrawal Agreement is an agreement negotiated between the EU and the UK, which outlines the terms of the UK’s departure from the EU. It covers a broad range of issues, including citizens’ rights, the financial settlement, and the Northern Ireland protocol.
What does it mean for UK citizens` pensions?
The Withdrawal Agreement guarantees that UK citizens who are living in EU countries or are planning to move there before the end of the transition period (31 December 2020) will have their pension rights protected. This includes the state pension, occupational pensions and private pensions.
The agreement also protects the rights of EU citizens living in the UK, ensuring that they will not lose access to their pensions.
For those with UK pensions living in the EU, there will be no changes to their pension payments and it will continue to be paid as normal. The same applies to EU nationals living in the UK.
However, the situation may become more complicated for those who move between the EU and the UK after the transition period. The possibility of different rules and requirements may affect UK citizens` ability to make contributions to EU pension schemes, and vice versa.
What about state pensions?
The UK state pension will continue to be paid to UK citizens living in the EU and vice versa. However, there is a possibility that the UK state pension will no longer be uprated in the EU. This is because, currently, the UK’s state pension increases each year in line with the triple lock system, which guarantees that the state pension will increase by at least 2.5%, the rate of inflation or average earnings growth, whichever is highest. The EU does not require member states to increase state pensions according to this system.
What should UK citizens do about their pensions?
UK citizens living in the EU should ensure that their pension provider is aware of their move, as this may affect the way their pension is paid. They should also keep track of any changes to the withdrawal agreement and how it may affect their pension.
It may be advisable for UK citizens living in the EU to seek professional advice on their pension, especially if they plan to move between the EU and the UK after the transition period.
In conclusion, the Brexit Withdrawal Agreement provides some reassurance for UK citizens living in the EU regarding their pensions. However, it’s important to stay up-to-date with any changes to the agreement and to seek professional advice on any potential impacts to your pension.