Around half a million Britons living in the EU could end up having their pensions frozen in the event of a no-deal Brexit, the government has warned. The Department for Exiting the European Union has published an 11-page document on government plans to help the three million UK citizens residing in the EU that reveals how reciprocity is a key ongoing issue.
The paper states, "Where it is in our control, the UK will also continue to preserve certain rights of UK nationals in the EU, for example by continuing to pay an uprated UK state pension to eligible UK nationals living in the EU." However, it added this would all be dependent on having reciprocal arrangements, with EU countries raising the pensions of their nationals living in the UK in the same way.
Even if the proposed deal does pass through the Parliament, there is not complete certainty over future pension arrangements. Answering questions on the deal in the House of Commons last month, Prime Minister Theresa May admitted that the UK and EU will still have to "negotiate some of the arrangements in relation to certain benefits, such as pensions, under the future trading relationship".