This regular payment is available to those who have reached the UK Government’s eligible retirement age, which is now 66 for both men and women.
The pension benefit is not paid automatically, it must be claimed by people of eligible age, as some people choose to defer their claim in order to continue working and contribute more to their retirement allowance.
However, the UK government has announced its intention to change the rules for calculating the state pension if you move abroad, as the UK has now left the EU.
The GOV.UK guide states that the change in the calculation of the state pension will affect people who move to live in the EU, EEA or Switzerland and those who have previously lived in:
The GOV.UK website states that from January 1, 2022, you will no longer be able to count periods of stay in Australia (before March 1, 2001), Canada or New Zealand to calculate your UK state pension. if both of the following conditions apply:
- you are a UK national, EU or EEA citizen or Swiss national
- you are moving to live in the EU, EEA or Switzerland as of January 1, 2022, including if you are moving to live in another EU, EEA country or Switzerland as of January 1 2022
The Department for Work and Pensions (DWP), which issues a state pension, explained on GOV.UK: “The change will affect you whether or not you have claimed your UK state pension yet.
“Your UK state pension will be calculated or recalculated if it is already in payment, using only your UK national insurance record. “
The DWP added that this change will have to be approved by the British Parliament.
Who is not affected by the change?
DWP indicates that you will not be affected by the change if you:
- live in the UK – regardless of your nationality
- are a UK national, EU or EEA citizen or Swiss national who was living in the EU, EEA or Switzerland on December 31, 2021
The guide states that as long as you continue to live in the same country, you will still be able to count the time spent in Australia (before March 1, 2001), Canada or New Zealand to calculate your UK state pension.
If you live in an EU or EEA country or Switzerland, your UK state pension will continue to increase each year based on the rate paid in the UK.
What are the current state pension payment rates?
State pension payments rose 2.5 percent in April.
This means that people over 66 on the new full state pension now receive £ 179.60 per week – an increase of £ 4.40 from the 2020/21 rate of £ 175.20. This works out to an additional £ 17.60 per month and £ 228.80 for the 2021/22 fiscal year.
Anyone on the ‘old’ basic state pension (category A or B) now receives £ 137.60 per week – a benefit increase of £ 3.35 from the 2020/21 rate. This equates to an additional £ 13.40 per month and £ 174.20 for the 2021/22 fiscal year.
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The annual increase is the result of the “triple foreclosure” decision, which is a guarantee that currently ensures that the state pension does not lose value due to inflation.
There have already been calls to drop or change the triple lockdown decision in the wake of the coronavirus pandemic, amid fears it will become too expensive to maintain.
The rules of triple locking mean that the payout increases each year by the highest value of:
If you want to know how much state pension you will receive and when you can retire, use the UK government’s online forecasting tool here.
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