A no-deal Brexit could make it illegal for pensions to be paid to British people living in the EU, MPs have been warned.
Pensioners who live within the European Union and receive their payments into their bank accounts could find themselves without any money if the UK leaves the EU without a deal.
Huw Evans, director General of The Association of British Insurers, suggested to the parliament’s Exiting the European Union Committee that is it “plausible” that these expats could be left without any money.
Hilary Benn, the Labour MP who chairs the committee, asked Mr Evans: "They might find that they couldn’t be paid their pension – is that what you are saying?”
“That is a perfectly plausible risk in the future if no agreement is reached in some countries of the EU,” he replied.
“It’s important to note here to avoid panic that each country of the EU has slightly different arrangements around this.
“We’re not saying this is a blanket risk across all 27 but it is a classic risk of the type that requires regulators with political blessing to sort the issue out themselves.”
During the session Mr Evans also warned tourists would find their insurance costs would rise when travelling to EU countries because they would lose their current insurance cards.
He also said it would be illegal to pay claims in EU countries, which could put millions of contracts at risk.
“If a claim comes in two years down the line, in a country like Germany, their lawyers will be advising them you can’t pay the claim,” he said.