The United Kingdom left the European Union in February 2020. This has impacted several aspects of the British and one of the major concerns was the impact on U.K. pensions. However, pensions have been negotiated so that U.K. citizens do not face any post-retirement issues. There are agreements in place that are going to protect your pension plans and benefits in the future, even though the U.K. is not a part of the EU anymore. In our article, let us find out if U.K. pensions have been affected and how you may still be entitled to everything that you should be.
How is it impacting U.K. citizens/workers?
A Withdrawal Agreement and a Trade and Cooperation Agreement between the U.K. and the EU regulate social security coordination. This secures the right to pensions and additional benefits of the U.K. citizens even after the withdrawal has taken place and is definite now.
Since the beginning of 2021, the Withdrawal Agreement has entitled people living in Sweden currently but who have worked in the U.K. before to receive Swedish pensions considering work and residence time frame in Sweden, the U.K. or any other EU member state. The Trade and Cooperation Agreement, on the other hand, is going to apply in all situations wherein an individual has entered a cross-border situation and earned insurance or rights between the EU and the U.K. after the two states entered into an agreement.
What are the Withdrawal and Trade and Cooperation Agreements?
refers to an agreement wherein Swedish citizens, after the transition period of the U.K. exiting the EU on 31st December 2020, ended working or living in the U.K. and have been continuing to do so are subject to all the same rules, regulations and benefits that prevailed before the exiting happened. It applies to British citizens as well who live or work or do both in Sweden as of 31 December 2020 till present without any external or internal interruption.
The Trade and Cooperation Agreement is set to regulate situations occurring after the 1st of January 2021. With the Withdrawal Agreement in existence, it means that different regulations govern the social security measures when a citizen of Sweden moves between the U.K. and Sweden for residence, work or studies; there will be separate legislation to be followed. The legislation that will take place will depend on the time of the movement between the two countries. To find out exactly what legislation will take place, the Swedish Pensions Agency will guide you better.
Impact of Brexit on U.K. Pensions Agencies
No payments from the Swedish Pensions Agencies after the transition period ended on December 31 2020, were affected due to Brexit. However, just like payments were paid out earlier, they continue to be unaffected. No income-based pension or pension contributed by your employer is going to be affected due to Brexit.
The regulation that has given the right to payment of a Guarantee pension to people living in Switzerland and the U.K. expires in September 2022. If an individual is entitled to this pension in September 2022, they will receive payments up to the end of December 2022 and not more. On the other hand, if you apply for the Guarantee pension and reside outside of Sweden, they will not be approved after 1 October 2022. This will not apply to those people born before or in the year 1937. It does not affect the pension plans for windows either.
Any occupational pension remains unaffected by Brexit and continues to work the same way it did before.
However, citizens of the U.K. and their family members after the transition period can live, work and study in Sweden; they are also advised to apply for residence status in the country before 31st December 2022 to obtain all their existing rights. Each member state will make this procedure possible. As a citizen of the U.K. who wants to legally reside in Sweden after the transition period ends, you need to apply for permanent residence status before 30th September 2021, which is the application period. If you did not apply for this, your residence-based benefits would be affected, which may or may not involve your pension plans. However, guaranteed pensions, elderly financial support and housing supplement will definitely be impacted.
Final words
Brexit has not majorly impacted the U.K. pensions and benefits that U.K. citizens are entitled to. The government offices have been responsible for Sweden’s role in Brexit and have negotiated agreements in the citizen’s favour. These agreements now regulate the agreements between the U.K. and the EU.
If you’d like to learn more about U.K. pensions after Brexit, you can request an introduction to a U.K. pensions specialist by clicking the link below.
