Frozen UK State Pensions are Impacting Expats Abroad
Campaigners are fighting to end this 70-year injustice which means that over half a million retired expats get a poor deal when it comes to receiving their state pension; because of where they have chosen to retire.
Residents of the European Economic Area (EEA) are paid the full going rate for their pension, but those who moved to Australia, NZ, Canada and South Africa (amongst others) are paid a frozen rate, so the pension amount remains at whatever value the pension was when they left home (in several cases many years ago). Frozen pensions lose value in real terms every year, because of the damaging effects of inflation – the ever-increasing costs of goods and services.
The Impact can be Severe
Just one example of someone who has been severely impacted by this outdated British policy is Anne Puckridge, a 93-year old Second World War veteran. She left the UK 17 years ago to live in Canada to be closer to her family. At the time of moving over, her state pension was worth £72.50 per week and remains at this amount. If she had stayed in Britain, her pension would have gone up every year and would now be at £125.95 per week.
Anne recently flew from Canada to the UK with a petition of more than 220’000 signatures that her daughter started, to campaign for a change in the law that would benefit around half a million pensioners living abroad.
All People Should be Entitled to full State Pension According to Length of their Working Lives
The All-Party Parliamentary Group (APPG) is a group that was created to bring together parliamentary supporters of the case to unfreeze frozen British State Pensions Overseas. Members believe that all people are entitled to receive the state pension according to the National Insurance contributions made during their working lives, regardless of where they choose to live.
Up until now, successive governments have refused to act to end frozen pensions, citing grounds of cost, fear of claims for back-payment, and also because there is no legal reason they have to do so.
Forth Capital Advice
At Forth Capital we are renowned experts in the field of expat advice and retirement planning. If you have a private or company pension, are concerned about your own position, or would simply would like to have an independent review of your current financial situation, contact us today to speak with one of our specialists