State pension rising in less than 2 weeks – but some pensioners miss out | Personal Finance | Finance
Yearly increases to the state pension are vital to ensure pensioners can maintain their spending power over time. However, some pensioners do not have the same rights as others.
While pensioners who live in the UK receive a boost to their state pension every year, those who have moved overseas in retirement may see their pension frozen.
This means as inflation pushes up the cost of living, people who have a frozen state pension lose money in real terms every year.
The UK Government only increases the state pension in certain overseas countries, and there are estimated to be more than half a million people who receive a frozen state pension.
Expats who live in Australia, Canada, New Zealand and other countries do not receive an increase in their UK state pension each year.
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The nations in the EEA are as follows:
- Austria
- Belgium
- Bulgaria
- Croatia
- Republic of 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
The UK does have a social security agreement with Canada and New Zealand, but British pensioners do not get a state pension boost in those countries.
Those living in Gibraltar and Switzerland also get an increase to their state pension each year.
From April 11, the full new state pension will increase from a weekly value of £179.60 up to £185.15.
Meanwhile the full basic state pension will increase from £137.60 to £141.85.
