Brexit could put EU-living Brits' state pensions at risk

Brexit could result in British pensioners living in the European Union (EU) not receiving their annual state pension increases.

The UK government has only agreed to pay pension increases on a reciprocal basis, which would require other EU countries to agree to pay for the increases to British pensioners living in their countries, while the UK pays for increases to EU pensioners living in the UK.

However, former Pensions Minister, Baroness Ros Altmann, explained that there would be “little incentive” for other nations in the EU to pay for British retiree’s pension increases, “because so many more of our people choose to live in countries like Spain and France, while hardly any of their citizens choose to retire over here”.

She continued: “There are 70,000 British people receiving state pensions in Spain, but only 62 Spanish pensioners in the UK.

“With such a massive imbalance, the temptation for Spain to make demands that our government could find unacceptable is obvious.”

There are around 340,000 British pensioners living in the EU, while only 85,000 EU residents over the age of 65 were working in the UK.

Although there would be some retirees from the EU living in the UK that are under 65, this number is likely to be relatively insignificant, resulting in EU countries facing large costs in comparison to the potential costs to the UK.

Altmann added: “The risks to people's state pensions were never made clear. Failing to explain risks properly, before they make decisions which could impact their pensions, is against the rules, but somehow when it comes to Brexit, many rules of normal practice are overridden.

“Surely it is important that people know what the implications are. But of course it would have been better to explain these in advance to voters.

“What will people feel when they find out more of these hidden consequences of Brexit? We shall see.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.