Fury for british expats with Frozen UK State pension

​​26th November 2018

British Expat Pensions

British Expat Pensions

Pension TRansfer Specialists

As many of you are aware the UK state pension has just equalised the age at which men and

women can claim their benefits. While this has been met with fanfare from progressives, it

has not been received so cheerfully by those believing that women are worse off.

This big change to the state pension is not the only one that has been lobbied for some time.

British expats in certain jurisdictions currently do not see any inflation linked increases to

their benefits once they claim it. This comes down to places that have reciprocal

arrangements to pay the full state pension, so those remaining in the UK, or places like the

European Economic Area (EEA) enjoy the state pension triple lock, guaranteeing an increase

of at least 2.5% a year. The difference over a 20 year period could be up to £20,000.

British retirees in places like Australia, New Zealand, Canada, South Africa, India and Thailand,

to name a few, face a frozen state pension when that golden age arrives.

The UK government currently has no intention to change this setup, however there are several groups setup to put pressure on them to do so. Current estimates suggest that this could cost the government between £200-£500 million a year.

Currently you can claim the UK state pension from the age of 65, if you have contributed at least 10 years full-time national insurance contributions. You have to have contributed 35 years to be eligible for the full state pension, which currently stands at £164.35 per week.

With this in mind, it is vital that expats maintain and manage their private pension arrangements to ensure that they do not suffer any shortfalls in retirement. Contact us to have a complimentary review of your entire situation, to understand if you're currently on track.