Moving from the U.K. to Denmark involves many more hurdles since Brexit came into affect on January 1st 2021. One of these involves pensions. 

Under HM Revenue and Customs rules, in order to open a new pension scheme, customers need to be a resident in the UK.

You can claim a State Pension abroad if you’ve paid enough UK National Insurance contributions to qualify. The payments can be made into your bank account abroad or into a UK bank account. 

However, since Brexit, some banks have started to close down their UK services to British citizens who live abroad. This means people have had to transfer their pension to the country they live in.

“In the UK, 25 percent of your pension is tax-free but in most countries it’s all taxable. So you might want to take it out before leaving the UK and then decide what you’ll do with the remainder,” Jason Porter, director at expat specialist financial adviser Blevins Franks, explained to The Local.

“Pretty much most banks prior to Brexit had been going through a consolidation, of withdrawing from European operations so closing down operations in European countries. Then came along Brexit, and it became a perfect storm for people who are living abroad. They need somewhere to receive money in the UK and it’s been quite difficult for a lot of them. Internet banks have filled the gap for many people,” Porter said.

READ MORE: REVEALED: Danish banks’ policies on non-Danish speaking customers

Private pension providers are less likely to offer cross-border services post-Brexit. This is because “passporting” rules that allow financial institutions to provide services across the EU have ended and instead they have to apply for a licence for each EU country.