Whether it’s to be close to family or for the sunnier climes, there are countless reasons why a person may choose to spend their later years living in another country. For eligible state pension recipients, many Britons can continue to claim the UK state pension while residing in another country. The triple lock guarantee applies in some countries, meaning the amount that they get each year rises. The increase is the highest amount out of the average percentage growth in wages (in Great Britain), the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI), and 2.5 per cent.
The state pension will only rise each year for those retiring abroad if they live in the European Economic Area (EEA), Gibraltar, Switzerland, or countries that have a social security agreement with the UK – although this does not include Canada and New Zealand.
READ MORE: The full list of countries where overseas pensioners WILL see their state pension payments go up each year
A spokesperson for the Department for Work and Pensions has said: “It would cost taxpayers more than £3billion over five years to change course on an issue which has been clear and settled Government policy for 70 years.
“We have no plans to do so.”
New Prime Minister Boris Johnson has said that the UK will leave the European Union by October 31, with or without a deal.
How could a no-deal Brexit affect the 1.3 million Britons living in the EU?
According to Jason Porter, director of specialist expat financial advisory firm Blevins Franks, it may be that the triple-lock guarantee is put at risk for some people.
He said: “As the EU has repeatedly stated, ‘nothing is agreed until everything is agreed’, so the triple-lock and payments from the UK to an EU bank account may be at risk.
“The triple-lock ensures UK state pension incomes go up at the rate of inflation, earnings or 2.5 per cent, whichever is higher.
“With the current system, Britons retiring to a country within the EU receive annual increases to their pensions to match the triple-lock commitment but there are concerns that it would end with Brexit – and pensions being frozen.”
Elsewhere in pension news, members of the campaign group Women Against State Pension Inequality (WASPI) sent a letter to Mr Johnson last week.
It came after he pledged to “commit to doing everything I possibly can to sorting out” the issue of the impact of the changes to the state pension age for women at Conservative party leadership hustings in Cheltenham, Gloucestershire, last month.
According to Gloucestershire Live, he also said: “I have made several representations already on behalf of my own constituents who fall into this category.
“And I must say the answer I’ve got back from the Treasury is not yet satisfactory.
“But I will undertake – if I’m lucky enough to succeed in this campaign – to return to this issue with fresh vigour and new eyes and see what I can do to sort it out.
“Because I’m conscious it’s been going on for too long.”
Hilary Simpson, co-ordinator of Cheltenham WASPI, said: “We were heartened to hear Mr Johnson’s words of support, but we need to keep the pressure on until we see some action.
“There are 5,600 women voters in the Cheltenham constituency who found out at the last minute they would not get the state pensions they had paid into all their working lives.
“Many are now suffering serious financial hardship and ill-health. All their financial plans have gone out of the window.”