State pension payment calculations are set to change for those who move to the EU, EEA or Switzerland who have also lived in Australia (before March 1 2001), Canada or New Zealand. The Government confirmed this is the result of the UK leaving the EU.
This change will affect people regardless of whether they’ve claimed their UK state pension or not.
Their state pension will be calculated, or recalculated, if already in payment using only a UK National Insurance record.
It should be noted this change will still need to be approved in Parliament.
There are also a number of circumstances where this change will not impact retirees.
Pension auto-enrolment warning: Women struggle with minimum threshold [WARNING]
Need to work indefinitely ‘all too likely’: Pension dreams on hold [EXPERT]
DWP urged to lower minimum automatic enrolment age [INSIGHT]
People will not be affected by these changes if they either:
- Live in in the UK, whatever their nationality
- Are a UK national, EU or EEA citizen or Swiss national who was living it the EU, EEA or Switzerland by December 31 2021
As long as a person continues to live in the same country, they will still be able to count time living in Australia, Canada or New Zealand to calculate a UK state pension.
If a person lives in an EU, EEA country or Switzerland their UK state pension will continue to increase every year in line with the rate paid in the UK.
To be eligible for a state pension, a person will need at least 10 years of National Insurance contributions.
The full amount of £179.60 per week will be paid to those who have at least 35 years of contributions under their belt.
State pensions can be claimed from the age of 66 but this will be increasing over the coming years.
It should be noted state pensions will not be paid automatically, they will need to be claimed.
Claims for state pensions can be made up to four months before reaching state pension age.
Initial payments may arrive within five weeks of reaching state pension age, so long as it’s claimed.
Beyond this, a full payment will arrive once every four weeks into an account of the claimant’s choosing.