brexit - what might it mean for your state pension?
TRANSCRIPT
Brexit: What it may mean to your state pension
Source: www.expatfocus.com
Two pension issues
“There are two pension issues that Brexit may cause. The first is Pensioner Rights for working people, and the second is the potential ‘freezing’ of the UK state pension.”
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Source: www.expatfocus.com
Pensioner Rights
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“With most EU countries state pensions are earned (they are a right, and not a benefit) based on the number of years of contributions made to the social security system in each EU country.”
Source: www.expatfocus.com
Pension rights in more than one country“In today’s mobile world, and free movement of labour throughout the EU, there are a significant number of people who have acquired state pension rights in more than one country.”
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Source: www.expatfocus.com
Contributions
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“How much a pensioner will receive may be calculated differently in each country depending on both the consolidated number of years of contributions made across all EU countries as well as the number of years' contribution pensioner has made in each EU country.”
Source: www.expatfocus.com
‘Do nothing’ scenario “All of this may change as part of the Brexit negotiations. In the ‘do nothing’ scenario would be a distinct possibility that the UK National Insurance contribution record will not be consolidated with the other periods worked in the EU.”
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Source: www.expatfocus.com
UK State Pension ‘freezing’
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ICBP
“The UK government currently uprates the UK State Pension annually based on ‘triple lock’ (the higher of inflation, increase in wages, or 2.5%) only in countries where they are ‘legally obliged’’ and this has been the case for over 70 years.”
Source: www.expatfocus.com
Pension erosion “A “frozen” pensioner retiring between April 1998 and March 1999 on a “full” UK State Pension will be £25,000 poorer compared to their peers living in the UK. Today, the UK state pension is nearly twice what it was in 1998 so the figure reported in The Telegraph would seem to be accurate.”8
Source: www.expatfocus.com
Discriminatory practice
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“The ICBP has been working for years to try and persuade the UK government to end this discriminatory practice of pension ‘freezing’. We are very concerned that the UK government will see the annual increase to the State Pension for pensioners living in the EU as an opportunity to save money as part of the Brexit negotiations..”
ThankYou