If you’re a British expat, you may be wondering how Brexit will impact you financially. Unfortunately, the news is not good.
After the Brits voted to invoke Article 50 last year, there was a lot of speculation about what this would mean for people in the UK. But little thought was given to British expats, who will be greatly affected once Britain leaves the European union.
Up until now, Brits have enjoyed numerous benefits when living in Europe. These benefits are not seen by other nationalities like Canadians, Aussies, Kiwis, South Africans, or Americans. But many experts are warning that these benefits are likely to end as European nations express their anger at Britain choosing to leave.
If you have a pension, you may be in trouble. As inflation rises, the pound falls, and the economy continues to weaken, we can expect to see pensions reduced as well.
Many people are also unaware of uprating. Right now, if you’re retiring in countries in the European Union, your state pension is automatically uprated each year, in line with inflation. There are valid concerns that if Britain leaves the single market this may no longer be the case.
Britain would then need to strike mutual agreements with each individual country concerned in order to have this benefit.
Right now, if you get sick or injured in man European countries, you can enjoy free healthcare. However, it seems likely that many member states will curb or restrict this access to expat Brits. That means you can expect to be paying much more for private health insurance.
Many older Brits retiring overseas have enjoyed in-home carers, which are often required when elderly expats are unable to do everything themselves. But the falling pound would mean that these services would be more expensive for Brits who would also be impacted by depleted pension accounts.
And it’s not just healthcare which will be impacted. As the sterling currency continues to decline in value, expats who earn their money in pounds would be in bad shape, particularly if they’re paying bills in Euro. This uncertainty would make the amount Brits are spending on monthly utilities fluctuate, and they would likely be paying more than they were pre-Brexit.
British expats can also unfortunately expect to spend more on everyday living expenses overseas. As the value of the pound falls against the euro, payments will be more expensive and difficult. This includes everyday items like homeware, food, and essentials. However, it also includes outgoings like financing a car or even servicing a foreign mortgage. One of the biggest worries is that this will be a very sudden change, and expats could find their expenses increasing suddenly almost overnight.
As we already know that the pound is being affected, it makes sense for many Brits to transfer their money out of the country. However transferring large sums of money overseas could be severely affected by the Brexit referendum.
For this reason, it makes sense to use a money transferring service, so you can transfer your money cost-effectively, and whenever you like.