450,000 state pensioners never see a triple lock hike – don’t be one | Personal Finance | Finance
The reason for this is that because they retired to a country where the state pensioner was “frozen” abroad, to a country where they first received and never rise again.
Under the triple lock, the state pension consumer price inflation (CPI), earnings growth or 2.5%, which is the highest.
The state pension increased by 4.1% in April this year and 8.5% in 2024, both in line with earnings. In 2023, it increased by 10.1%in accordance with CPI.
These major increases helped to protect retirees during the cost of life and maintained their enormous challenges.
Nevertheless, many expatriates do not benefit at all. In some cases, they notice the danger only when it is too late, which comes as a shock for those who assume that pensions will keep up with the living costs.
In the EU, retired retirees in the European Economic Region, Gibraltar, Switzerland and the UK in other countries with social security agreements, will continue to receive triple key increases.
However, moving to Australia, Canada or New Zealand is that there is no such agreement and this uprising stops. In a cruel irony, these are popular immigrant destinations with the British.
Myron Jobson, an interactive investor senior personal finance analyst, warned that the lost income is wrapped over time. “If you move to a country without a retirement increase agreement, the state pension will be frozen at the first level you receive. This will seriously erode your spending power.”
According to interactive investor calculations, the state pension, which has been lost for more than 20 years, may add approximately £ 70,000.
This assumes that the retirement has a complete right to the new state pension, and in April 2026, in September 2026, the TÜF CPI figure increased by 3.7% and then increased by 2.5% per year.
If it rises faster than that, its losses may probably be greater.
Shorter accommodation abroad can be costly. Someone who moved abroad five years ago may have missed £ 7,391 in total state pension. For over 10 years, accumulated losses will rise to £ 15,838.
This is a serious source of disappointment for many people. Campaigns have long been called for reforms, but so far consecutive governments have shown little appetite to change the rules.
Frozen British pensions, the entire party parliamentary group says that approximately 450,000 people are affected. Many live in Commonwealth countries with close ties with England and contribute to the sense of injustice.
While retiring abroad can offer a better quality of life, warmer air or closeness to the family, Jobson said it is very important to check how any movement can affect your state pension.
“Pre -planning is the key. Make sure you check if your choice of arrival is affected and consider undertaking gaps in your national insurance recording to maximize that you are entitled.”
“Although it does not help to rise in frozen countries, the state can postpone your pension, increase the amount you receive.”
First of all, he called on the protectors to create special pensions and receive professional advice before taking action to help them close the gap. Great overseas retirement retirement triple lock ice cream is unlikely to be dissolved soon.
