early retirement

State pension to rise next year but not for those in certain countries

havenifa

havenifa


Posted on: 1st November 2019

Those claiming the state pension should expect to see the amount rise next year as a result of the triple lock. At the moment, state pensioners living full-time in specific countries worldwide will not benefit from the new amount. It is set to rise by 3.9 per cent, in line with the annual wage growth and will come into effect in April 2020.

The triple lock

The triple lock allows the state pension to rise reach year by whichever is the highest out of the average percentage growth in wages, the percentage growth in UK prices and 2.5 per cent. The uprate will apply to both basic and new state pensions.

When it comes to those who claim the UK state pension abroad, however, the rules are different.

The state pension will only increase on an annual basis if someone lives in the European Economic Area (EEA), Gibraltar, Switzerland and other countries that have a social security agreement with the UK. However, the uprated state pension can not be received by those who live in New Zealand or Canada.

According to gov.uk, anyone who lives outside of these countries will not receive the yearly increases. Of course, if they choose to return to the UK, their pension will rise to the current rate.

For those living in the EU and receive a UK state pension, this guarantee offers reassurance that their pensions will continue to rise each year, even when we leave.

You can find out the countries in the EEA and countries that the UK has a social security agreement with here.

Last month, the department for Work and Pensions announced that the government will continue uprating the UK state pension that is paid to those living in the EU for the next three years in the event of a no deal Brexit.

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