Campaigner appeals for state pension release for dying people
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Britons who chose to move abroad to certain countries later in life may find their state pension does not rise in-line with inflation, resulting in them falling behind in real-terms. The International Consortium of British Pensioners believes this pushes many expats into “poverty and hardship”, affecting around 500,000 people. Many of these state pensioners have paid their full National Insurance contributions.
Various countries have a reciprocal agreement with the UK to align pension payments with inflation.
However, some Britons opt to move to countries which have no such arrangement and tend to lose out as a result.
For example, someone who has spent their retirement living in the United States would not see their pension payments affected.
However, a British pensioner who has moved to Canada would see their payments frozen, and campaigners warn it could lead them into “poverty and financial hardship”.
READ MORE: State pension set to rise next year but 520,000 people will miss out
One of the groups advocating for older Britons abroad is the End Frozen Pensions Campaign.
This group claims that a pensioner aged 90 who has lived in a frozen country during their retirement would have received a state pension of just £43.60 per week last year
If the same person had continued to live in the UK last year, they would be in receipt of £137.60 per week.
As it stands, older Britons get £141.85 per week on the basic state pension and £181.15 for the new state pension.
Residents in the UK are expecting a rise to their state pension payments after the triple lock is reinstated.
Last year, pensioners only saw an increase of 3.1 percent to their retirement payments due to the triple lock being temporarily suspended.
The Government has promised to raise state pension payments either the rate of inflation, average earnings or 2.5 percent; whichever is higher.
With inflation expected to hit 10 percent next month, people who get the new state pension could see their annual payments exceed £10,000 from April 2023.
READ MORE: Britons in higher bracket can do 2 main things to reduce tax payments
John Duffy, the chair of the International Consortium of British Pensioners, praised the Government’s commitment to supporting UK residents but criticised its exclusion of those living outside the country.
Mr Duffy explained: “Although we welcome the rise in UK pensions, we are hugely disappointed that the UK Government is continuing to treat British citizens living in an arbitrary list of countries unfairly.
“This outrageously cruel policy is excluding pensioners, many of whom spent their working lives in the UK, and leaving them to face poverty and financial hardship.
“The UK Government could choose to end this policy now but instead continues to treat British pensioners across the world unequally, despite the contributions they have made to the UK.
“We hope the Government will engage in future discussions to end this policy and give all UK pensioners the support they are entitled to, no matter where they live.”
Speaking to Express.co.uk, a DWP spokesperson said: “We understand that people move abroad for many reasons and that this can impact on their finances.
“There is information on GOV.UK about what the effect of going abroad will be on entitlement to the UK state pension.
“The Government’s policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”
Source: Read Full Article