Why the expat retirement dream could be gone forever
Sun-seeking pensioners no longer have the same rights following Brexit
16 May 2021 • 5:00am
Dreams of retiring to sunnier climes have been dashed for many following Britain’s exit from the European Union. Bureaucratic complications, combined with the pandemic, have forced retirees to reconsider their plans, amid worries about losing state pension rights and access to healthcare.
Wannabe expats have been tripped up by continued uncertainty. The Government confirmed in January that anyone moving to the EU or Switzerland after Brexit would carry on receiving their British state pension as normal and would also get subsequent increases. However, it has since made changes to the way the pension is calculated. This will result in lower weekly payments for some.
Pension transfers could go back to ‘dark ages’ under DWP plans
By Jean-Baptiste Andrieux 14
th May 2021 3:58 pm
The new rules are part of a broad crack down on scams that have been a concern of MPs and campaigners in light of the pandemic.
The tough proposals will force pension schemes to follow a prescribed process when there are concerns about pension transfers.
Customers would have to answer a list of set questions and potentially consult with Pension Wise.
AJ Bell warned thousands of legitimate transfers to mainstream pension providers could be blocked. This could occur in cases where customers can’t or refuse to answer these prescribed questions.
So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money , says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download
In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.Download
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‘Late Financial Bloomers’ set to grow over next 15 years
By Jean-Baptiste Andrieux 29
th April 2021 10:02 am
Research from Canada Life shows the number of ‘late financial bloomers’ will grow significantly over the next 15 years.
The group currently makes up 6% of the retirement market but is expected to change the face of retirement in the future.
Late financial bloomers tend to secure financial stability at a later life stage compared to previous generations.
This is explained by socioeconomic factors such as later access to home ownership, getting married and having children later in life.
Canada Life technical director Andrew Tully said: “The retirement market will be disrupted by the growth of late financial bloomers; a group which only makes up a fraction of the current market but will account for a much larger proportion by 2035. These retirees are more likely to have less wealth when they reach the ‘typical’ retirement age an