Pension provider Phoenix Group is calling on all British expats currently living in the European Economic Area (EEA) to “take action” on the closure of bank accounts as a result of Brexit.
International Adviser first reported the issue in September 2020, after several UK banks informed their British customers in the EU that they were going to shut their accounts due to the end of passporting rights.
Phoenix is now urging those affected to check their banking arrangements and/or find alternatives to make sure they can keep receiving payments.
The firm wrote to its clients about the issue but said it had a “limited response”.
Risk of income interruption
Depsite a regional advertisement campaign, Phoenix found that there are still a number of clients that have not set up alternative banking arrangements and who risk not being able to receive payments from pension providers.
This is especially urgent for those receiving regular annuity payments.
Andy Moss, Phoenix Life chief executive and group director at Heritage Business, said: “Many people are reliant on their private pension income and we want to help them ensure they continue to receive this with no interruption.
“We believe that thousands of our customers could be at risk of their income being interrupted due to these changes and we are urging them to make new banking arrangements immediately.”
Phoenix warned that moving from a UK bank account to an international one could change an expat’s tax status in the country of residence, and people should seek financial advice before making such a decision.