This year, state pension payments are rising in line with wage growth, which was 4.1% – but half a million older Brits won’t see any increase at all
Nearly half a million expat state pensioners will miss out on a yearly boost worth up to £470 when the state pension rises next month. The state pension is set to increase by 4.1% from April 2025 thanks to the triple lock promise.
The triple lock guarantees the state pension goes up every year by whichever is highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5%. This year, state pension payments are rising by wage growth, which was 4.1%. State pensions are paid by the Department for Work and Pensions (DWP).
However, not everyone will see their state pension rise next month. Some 453,000 state pensioners who live in some of the most popular overseas retirement destinations won’t see the increase, as there is no reciprocal agreement in place to boost state pensions yearly in certain countries, including Australia, New Zealand and Canada.
If your state pension is frozen, it remains at the rate from when you first emigrated. Your pension will go up to the current rate if you return to live in the UK. You will only see your state pension increased every year when abroad if you live in the European Economic Area (EEA) or Switzerland, or in country that has a social security agreement with the UK, apart from Canada and New Zealand.
William Cooper, Marketing Director at international health insurance firm William Russell, said: “Expats are eligible to claim a UK State Pension, provided they have accumulated sufficient qualifying years of National Insurance contributions. This varies depending on when you first started working, but a good rule of thumb for a full state pension means at least 35 years of paying National Insurance in the UK.
“The pension can be paid to you regardless of where you live, but it’s crucial to understand how living abroad may affect the amount and any potential increases. If you reside in certain countries, typically those with a reciprocal social security agreement with the UK, your State Pension may still increase each year as it would if you were in the UK. However, in other countries, the pension may be ‘frozen’ at the rate it was first paid.
“For those considering transferring their pension abroad, it’s essential to explore options like a Qualifying Recognised Overseas Pension Scheme (QROPS), which may offer tax advantages or more flexibility. Always seek guidance from a financial advisor with international expertise to navigate currency fluctuations, tax implications, and local pension regulations.“
The full new state pension is worth £221.20 a week, or £11,502 a year, but this will rise to £230.30 a week, or £11,975 a year, from this April – a yearly increase of £473. The full basic state pension is worth £169.50 a week, or £8,814 a year, but this will rise to £176.45 a week, or £9,175 a year – an annual rise of £361. Which of these state pensions you claim depends on when you were born.
The exact amount of state pension you get also varies, depending on your National Insurance record. For the new state pension, most people need 35 qualifying years on their National Insurance record to get the full amount, and normally ten years to get anything at all.
Full list of countries where your state pension WILL increase
EEA countries and Switzerland
- Austria
- Belgium
- Bulgaria
- Croatia
- Cyprus
- Czech Republic
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Hungary
- Iceland
- Ireland
- Italy
- Latvia
- Liechtenstein
- Lithuania
- Luxembourg
- Malta
- Netherlands
- Norway
- Poland
- Portugal
- Romania
- Slovakia
- Slovenia
- Spain
- Sweden
- Switzerland
Countries the UK has a social security agreement with
- Barbados
- Bermuda
- Bosnia-Herzegovina
- Gibraltar
- Guernsey
- the Isle of Man
- Israel
- Jamaica
- Jersey
- Kosovo
- Mauritius
- Montenegro
- North Macedonia
- the Philippines
- Serbia
- Turkey
- USA
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