Thousands could miss out on State Pension due to Brexit – are you affected? | Personal Finance | Finance


Although the rules are due to change on January 1, 2022, experts are worried that not enough people are prepared. They are urging Britons who are planning to move abroad at any time in the future to first check how this will affect their state pension before taking the plunge.

The proposed changes to the legislation could mean some people will receive less than they had planned for, or even nothing at all.

To qualify for a full state pension, people need to have 35 qualifying years which requires them to have paid at least 10 years in National Insurance.

But UK residents who have already lived in Australia (before March 1 2001), Canada or New Zealand are being urged to do their research before moving abroad as it could mean missing out on £179.60 a week.

It’s thought this rule change could affect thousands of British citizens of state pension age, as well as some who are yet to retire.

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“This change in rule comes at an already difficult time for expats and the government needs to lay out clear guidelines on the new state pension breakdown as we enter 2022.

“We urge UK residents who have already lived in Australia, Canada or New Zealand to do their research before moving abroad.”

On the Government website, the Department for Work and Pensions stated: “The change will affect you whether or not you have claimed your UK State Pension yet.

“Your UK State Pension will be calculated, or recalculated if already in payment, using only your UK National Insurance record.”

Meanwhile, pensioners could be about to witness the biggest increase to their state pension in a decade, thanks to a predicted increase of up to four percent.

Although the triple lock will be put on hold for 2022, some say that a significant boost is still on the cards via the double lock.

If the state pension did increase by four percent, it would mean retirees receiving the full basic state pension would get £186.78 each week, an increase of £7.18.

This equates to £373.36 extra per year.

How could Brexit affect the State Pension?

The government says the change will be relevant to you if you move to live in, or move between, an EU or EEA country or Switzerland and you have previously lived in:

  • Australia (before March 1, 2001)
  • Canada
  • New Zealand

The changes will affect those who are:

  • A UK national, EU or EEA citizen or Swiss national
  • People who move to the EU, EEA or Switzerland on or after January 1, 2022, including if they move to live in another EU, EEA country or Switzerland on or after January 1, 2022.

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