Rumours that Chancellor Rachel Reeves may target pensions in her November Budget are pushing British expats in Europe to weigh shifting their retirement savings abroad. With an estimated £30billion hole in public finances and borrowing costs at decade-high levels, Devere Group investment director James Green said speculation is mounting that pensions could become a revenue-raising target.
Mr Green said: “Expats are already weighing their options. Even the possibility of new or extended taxes on pensions is enough to set serious savers in motion. “British nationals living in Europe, those planning to retire there, or other nationalities, such as Irish and Dutch with UK pensions, are now considering international solutions to protect their retirement income.”
DeVere Group, which advises 80,000 expats worldwide, said it has seen a jump in calls from Britons living in Portugal, Spain, France and the Netherlands. Many are reportedly looking at moving pensions into cross-border schemes in the EU, such as Malta, ahead of the Budget.
Mr Green said the conversation has shifted from « curiosity to preparation », adding that the concern extends beyond high-net-worth individuals. He said: “Frozen allowances and stealth tax rises have already drawn millions into higher brackets.
“Even a modest extension of those freezes would hit many middle-class pensioners. Anyone with UK retirement savings who lives abroad, or plans to, should be considering the implications now.”
He added: “The fiscal reality keeps pressure on the Treasury to find revenue sources less politically explosive than broad income-tax hikes. Pensions are a perennially tempting option, which is why investors are acting even before any announcement.”
Retirement savers have been urged not to make snap decisions on their pots and consult a professional first.
Eamonn Prendergast, chartered financial adviser at Bromley-based Palantir Financial Planning Ltd, said: « Fear and rumour are a terrible basis for retirement planning, yet speculation has been running unchecked since last year’s Budget.
« Too often it’s those without guidance who make the costliest mistakes, leaving themselves worse off and more stressed.”
He added: “The Government must do more to quash rumours early and give clarity. Savers need calm, long-term planning and proper advice; pensions should be built on strategy, not scare tactics.”
Chancellor Rachel Reeves will announce the autumn Budget on November 26, 2025.
