Pensions - Articles - No deal Brexit ending UK state pension upratings


Steven Cameron, Pensions Director at Aegon comments on the Government announcement that state pension inflation upratings to UK claimants now resident in the EU are only guaranteed to continue for 3 years after a no deal Brexit.

 Steven Cameron, Pensions Director at Aegon, comments:“The UK Government’s announcement that EU residents entitled to UK state pensions are only guaranteed to receive inflation upratings for 3 years in the event of a no deal Brexit calls into question what could happen thereafter. While designed to offer reassurance that valuable upratings will continue for this 3 year period, it raises the spectre that such increases might cease in 2023.

 “Under current rules, UK state pensioners resident in the UK and the EU benefit from the ‘triple lock’, which means state pensions increase at the highest of 2.5%, average wage growth or prices growth. This has meant over recent years, pensioners have seen their state pension increase faster than price inflation, improving their purchasing power. While the current Government has not committed to continuing the triple lock rather than for example price inflation increases beyond the current Parliamentary term, the potential for the half million who have retired to live in the EU losing all inflation protection will be a big concern. If inflation were to be at the Bank of England’s target level of 2.5%, £1000 today would be worth only £781 in 10 years’ time, a 22% drop in purchasing power.”
  

Back to Index


Similar News to this Story

The PPF launch the 14th edition of The Purple Book
In its fourteenth edition of The Purple Book, the Pension Protection Fund (PPF) reveals a strong link between investment risk and underfunding in defi
Industry comment on the 14th edition of the PPFs Purple Book
Industry comment from Hymans Robertson Lincoln Pensions and Clara Pensions on the 14th edition of the PPFs Purple Book
Final report of ACA 2019 Pension trends survey
ACA survey report says momentum of pension reform needs to be built upon with plans set out to increase automatic enrolment minimum contributions alon

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.