The CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations has said that hundreds of thousands of Brits living abroad will miss out on the annual State Pension uprating which is due to be paid in full for the first time this month. Nigel Green, of deVere Group, warns that an estimated 500,000 older people will "continue to have their pensions frozen in value at the point of retirement date or date of emigration".
State Pension, along with other benefits delivered by the Department for Work and Pensions (DWP) increased by 10.1 per cent on April 10 as part of the Triple Lock agreement, however, payments are made four weeks in arrears so the full uprating would not have been seen in payments until after May 16. Payments made before this date may have contained a mix of old and new weekly rates.
This means, for the 2023/24 financial year, those on the full New State Pension will receive weekly payments of up to £203.85 and those on the Basic State Pension will receive up to £156.20 per week. However, it's important to be aware that how much someone receives depends on the amount of National Insurance contributions they have made.
Commenting recently on the State Pension uprating, the deVere CEO said: “Clearly, this is good news for many retirees as it could mean a financial boost of around £1,000 a year.”
But he warned that not all State Pensioners will benefit from the double digit uprating. Mr Green explained: “An estimated 500,000 retired Brits who live abroad will not receive any boost at all. Outrageously, they will continue to have their pensions frozen in value at the point of retirement date or date of emigration.
“Having a frozen pension means that your retirement income falls in real terms year on year due to inflation - and never has this been more true than as the cost of living has soared.”
Retired expats in the European Economic Area (EEA) will continue to receive annual increases to their State Pensions under the triple lock scheme, as will those in a host of other countries including the United States, the Philippines and Turkey.
But the majority of affected State Pensioners live in some of the biggest Commonwealth countries, such as Australia and Canada, and, despite paying taxes all their working lives in the UK, and National Insurance Contributions in full, these Brits will miss out on the rise given to others.
Mr Green said: “It seems completely unjust that someone living in the USA will receive an extra £1,000, yet someone just across the border in Canada, in the same situation, will not.”
Ahead of the Spring Budget in March, the deVere CEO called on Prime Minister Rishi Sunak and Chancellor Jeremy Hunt to “scrap the policy of penalising 500,000-plus British pensioners”.
At the time he said: “It’s a national scandal that the UK Government is intentionally neglecting its older people abroad, pushing many into poverty. These retirees held up their end of the deal by fully contributing to the system when in the UK. The government must now do the right thing and uphold their side too.”
Below is everything you need to know about the increase to State Pension payments over the 2023/24 financial year.
Full New State Pension
You are eligible for the New State Pension if you are:
- a man born on or after April 6, 1951
- a woman born on or after April 6, 1953
New State Pension payment rates
- Weekly rate: £203.85, an increase of £18.70 from £185.15
- Four-weekly rate: £815.40, an increase of £74.80 from £740.60
Basic State Pension (Category A or B)
You are eligible for the Basic State Pension if you are:
- a man born before April 6, 1951
- a woman born before April 6, 1953
Basic State Pension payment rates
- Weekly rate: £156.20, an increase of £14.35 from £141.85
- Four-weekly rate: £624.80, an increase of £57.40 from £567.40
Widow’s Pension
- Standard rate: £139.10 (from £126.35)
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