Speculation Mounts Over Reeves’ Budget
Growing concern surrounds UK Chancellor Rachel Reeves’ upcoming November Budget, with reports suggesting pensions could face new tax burdens. The Treasury faces a £20 billion shortfall, while gilt yields remain near 4.75%, the highest in more than a decade. With income-tax hikes politically risky, pensions are increasingly seen as a potential target. Analysts warn that even rumors of reform are enough to push savers into action.
Expats Turn to Malta for Stability
According to deVere Group investment director James Green, expats across Portugal, Spain, France, and the Netherlands are now actively exploring EU IORP frameworks, particularly in Malta. The Maltese system allows flexible lump-sum withdrawals of up to 30% without a lifetime cap, customizable phased income, and inheritance rules that often bypass UK death duties for non-residents. These advantages, combined with Portugal’s and Spain’s still-favorable tax regimes, make relocation of pensions an increasingly appealing option for mobile retirees.
From Wealthy to Middle-Class Savers
Green emphasizes that the issue extends beyond the wealthy elite. Frozen allowances and stealth taxes are already pushing millions into higher tax brackets, meaning middle-class pensioners could also be at risk. Even modest policy changes could accelerate their tax burden. This has shifted the expat conversation from curiosity to preparation, with many seeking to secure cross-border transfers before any official announcement.
Economic and Political Implications
The UK’s fiscal reality, with borrowing costs soaring and interest payments far above forecasts, puts pensions firmly in the crosshairs. Critics argue that penalizing long-term savings would weaken investment confidence and undermine economic resilience. Investors are therefore eyeing jurisdictions with clearer and more stable rules. Green advises seeking professional guidance early, as waiting until after the Chancellor’s Budget may close the window for efficient and compliant transfers.