Pensions - Articles - Time limited pension increases a fear for ex pats in Europe


The Government’s announcement today that annual state pension increases will only be guaranteed for the next three years to British pensioners living in Europe is ‘deeply worrying’, according to Steve Webb, Director of Policy at Royal London.

 Under current rules, British pensioners in certain countries such as Australia, Canada and South Africa have their state pension frozen each year, but British pensioners in the EU get annual increases in line with pensioners living in the UK. It had been widely assumed that this policy would continue indefinitely post-Brexit. But today the DWP has announced that annual increases will only be guaranteed for the next three years, after which the Government ‘plans to negotiate a new agreement’. In the absence of such an agreement there is no guarantee of annual increases. With pensioners being retired for potentially 20-30 years, the lack of annual inflation protection could make a very large difference to their standard of living.

 Commenting, Steve Webb said: ‘This attempt to reassure British pensioners living in the EU will actually have the opposite effect. They have received repeated assurances that their pensions would be increased each year regardless of the outcome of the Brexit process. Today’s announcement of a time-limited guarantee will be deeply worrying to British ex-pats living in the EU. If the UK leaves the EU on bad terms with the rest of the Europe there is no guarantee that a new uprating arrangement will be reached, and today’s statement offers no assurance to pensioners that annual increases will continue after that point’.
   

Back to Index


Similar News to this Story

Insuring Womens Futures and closing the gender pensions gap
The CII Insuring Women’s Futures have launched their manifesto, aiming to improve the financial journey of women throughout their lives. NOW: Pensions
What WASPI women want and warrant
As we head into the brave new world of 2020 with a strong majority Government that has every chance of seeing all its policies implemented during its
5 things to look out for from the 2020 regulatory landscape
Keeping on top of regulatory requirements is a growing concern for Trustees, with almost half seeing it as their biggest challenge throughout 2019. Th

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.