Wealth Management News

Will workplace pensions be affected by the UK – EU trade deal?

Under the terms of the Brexit Withdrawal agreement and the new EU trade deal, how certain financial assets can be managed and accessed in the UK and abroad has changed.

While it is not yet entirely clear how this may affect investments, the Department for Work and Pensions (DWP) has already offered some clarity on the impact the new arrangements may have on workplace pensions.

Under the previous legislation, UK law allowed workplace pensions to be paid overseas, but it was unclear if this would continue after the transition period ended.

However, following confirmation of the new EU – UK free trade agreement the DWP has said that the Government does not expect the current rules to change.

It advises that anyone concerned about their pension savings, whether they are living or working overseas or based in the UK with assets overseas, should speak to their pension providers to clarify their position.

The DWP has added that if a workplace pension is paid into a UK bank account, the recipient’s bank should contact them if they need to change the way they receive the pension because of Brexit.

Workplace pensions are offered specific protections from certain economic damages but what’s offered is dependent on the type of scheme, whether it is a defined contribution or defined benefit pension schemes.

As per the DWP’s assurances, most schemes should be unaffected by the new Brexit deal, but savers are being advised to seek help if they are unsure if their pension scheme might be impacted by new rules following Brexit, especially if they live or work in the EU.

Link: Pension: DWP confirms how workplace pensions will be affected as the UK leaves the EU