There are currently many ex-pats living in Spain, and many of them are worried about Brexit’s consequences in case of a no deal scenario.
However, there is no need to be worried, at least for that particular situation. The UK government has already clarified that UK nationals living in EU countries will continue receiving their pensions.
There is Something to Worry About…
Nowadays, the UK is raising the pensions of expats according to the rise of inflation in the EU country where they live. The government has the intent to continue doing the same, but for that some they need to reach an agreement with other countries.
The exchange rate between the pound and the euro is also a concern, since experts expect the pound to go down. However, if there is one thing that’s unpredictable it’s the market, and we cannot predict what will happen. Right now, it seems that even if the pound’s value goes down, the cost of living in Spain will still be lower than the cost of living in the UK.
Private Pensions Have More Uncertainty, But We Do Not Expect Big Problems
What will happen with private pensions is not so clear. We advise our readers to contact their insurance company and ask them about this. It is important to get information so that you can arrange your future.
Anyway, we guess that, as a last resort, your insurance company will be able to pay you in your UK account. Then you will be able to exchange the money into euros and transfer it to your Spanish account. Of course, this will mean paying some fees.
Happily, there are now several online companies that allow you to do very cheap bank transfers. Just search ‘international bank transfer’ in Google and make sure you choose a company authorised by the Financial Conduct Authority (FCA).
We also think it is very likely that Spain and the UK will make bilateral agreements. Both countries are very interested in this due to the high number of UK nationals living in Spain. Remember that there are some locations by the Mediterranean shore whose economy would suffer a lot if the UK leaves the EU. The British contribute to the from the real estate market, to everyday economic activity like supermarkets and other businesses, and not to mention hotels.
As a Conclusion…
Ask your pension provider to keep you informed, but have faith that eventually you will hopefully be able to continue living where you want, only maybe at a slightly higher price.