Last year, Brits voted to invoke Article 50 of the Lisbon Treaty and leave the European Union.
The outcome of the result was unexpected by many, which led to the value of the pound immediately crashing and continuing to fluctuate in the 12 months since, acting as something of a metaphor for the uncertainty that surrounds what Brexit will mean in reality.
Ever since the outcome of the referendum was announced, British expats living in Europe have faced confusion about their status and what the future is likely to hold for them and their finances.
As a result, many are choosing to move their money out of the UK, as this will mean it is no longer affected by the value of the pound. It can be costly to transfer large sums between countries when going through a bank, but if you use a money transferring service, you can take advantage of greater flexibility, transferring cash whenever you like in a safe and secure way.
But why exactly is this necessary? Are financial circumstances really going to get to such a drastic stage for British expats? Many experts certainly think so. Here are a few reasons why:
Pension funds falling
For older expats, protecting their pension fund is likely to be a key priority. But with the declining value of the pound and increasing inflation, the average sum contained in pension funds is falling.
What’s more, there is a very real possibility that uprating could be ended. Uprating is the process that sees expats’ pensions rise in line with inflation every 12 months, but several EU member states have already discussed ending this for Brits living abroad following the country’s decision to quit Europe.
With this in mind, if you want to safeguard your retirement savings, it may be a good idea to look into transferring your money out of the UK in the near future.
An end to free universal healthcare
Aside from the good weather, picturesque scenery and quieter way of life that emigrating to Europe can offer, many Brits like to live there because of the free universal healthcare they are entitled to, which offers similar benefits to the NHS.
However, several EU member states have expressed annoyance at Britain wanting to leave the union but keep perks such as this, warning that access to the free public healthcare system may have to be restricted or even cut off altogether if the UK leaves the single market.
Therefore, it will not be until after the outcome of the upcoming general election is announced that British expats know how likely it is that their healthcare access will be affected – another reason why transferring financial assets out of Britain sooner rather than later may be advisable.
Inflated living costs
It’s not just healthcare costs that could be set to rise either, with the general cost of living for expats also likely to increase over the next few years as a result of Brexit. The price of everything from food to utilities and from car finance to home carers could shoot up more or less overnight due to the current political situation. Therefore, it’s important to be prepared and to have a plan in place for your personal finances as Europe gets to grips with this uncertain period.