European high court decision to continue to freeze UK expats’ pensions

Rex Cowley, Head of Marketing, at the International division of Close, comments on the European high court decision to continue to freeze UK expats’ pensions:

“This further demonstrates the complexity of emigration and the need for good advice and a clear understanding of the trade offs between life style and income. It should be noted however, that not all people who retire to the sun have money. Our experience with the UK expatriate market shows a clear segment of emigrants that can only secure a comfortable retirement by selling their UK property and relocating to a lower cost jurisdiction. Here they have traditionally benefitted from the value of the pound, lower property prices and a cheaper cost of living.

hilst the UK Government may make savings in the short term, the effect of long life and no indexation of pension income could well see people return when they can no longer afford to live away. This in turn could put additional strain on social services, housing, the NHS and the Treasury’s coffers as these individuals may have little or no wealth left and become totally reliant on the state. Hence the election of retirement jurisdiction should feature strongly within any financial planning for expats”

For further editorial information please contact Marlene Scott or Emily Church at Polhill Communications on 020 7655 0550 or m_scott@polhill.com / e_church@polhill.com

Notes to editors:

www.closeam.com
Pension services are administered by Close Trustees Guernsey Limited, which is licensed under the Regulation of Fiduciaries, Administration Businesses and Company Directors etc. (Bailiwick of Guernsey) Law, 2000 and regulated by the Guernsey Financial Services Commission. Its registered office is at Trafalgar Court, Admiral Park, St Peter Port, Guernsey, Channel Islands, GY1 2JA, registration number 5737. Close Trustees Guernsey Limited is part of the Close Asset Management group ultimately owned by Close Brothers Group plc.