IT could become ‘illegal’ to pay private pensions to British expats living in Spain if the UK exits the EU without a deal, MPs have been told.
Retired expats living in Spain who receive payments into their bank accounts in their adopted countries would be left without any money in a no-deal Brexit scenario.
The Association of British Insurers (ABI) claim expats living in the EU ‘might find that they couldn’t be paid their pension’, reported The Independent.
Director General of ABI, Huw Evans, said: “That is a perfectly plausible risk in the future of no agreement is reached in some countries of the EU.”
It comes as Theresa May is desperately defending her Chequers plan from attacks by factions of her own party as she tries to sell it to the EU.
Meanwhile, senior ministers are attempting to draw up new trade deals in Europe.
Evans also noted that tourists would be forced to pay higher rates for holiday insurance as they would lose EU health cards.
He added that a shocking 38 million contracts could be left in ‘legal limbo’ as it would become illegal to pay claims in EU countries.
However, Evans urged that he wanted to “avoid panic” and added that this would not be the case in all EU countries, if the UK were to exit with a no-deal scenario.