State pension will rise by £290 this year – but 500,000 people set to miss out on boost

State pension: Expert on difference between ‘old’ and ‘new’

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

State pension payments provide important support to older people, with many keen to understand how much they will receive. It could be welcome news that the state pension sum is rising this year, providing more support to Britons. However, this is albeit tempered by the fact the triple lock mechanism has been suspended temporarily.

The Department for Work and Pensions has confirmed the state pension will be increased by 3.1 percent in 2022.

Retirees on the full, new state pension will therefore see their earnings rise by £290.

The Triple Lock suspension has been described by the Government as a “one-year response to exceptional circumstances”.

Regardless of the increase, though, there are certain individuals who will miss out on a state pension boost.

The state pension increase is only available to Britons if they reside in specific places, which include: 

  • The UK
  • The European Economic Area (EEA)
  • Switzerland
  • Gibraltar
  • Countries which have a social security agreement with the UK (but not Canada or New Zealand)

Consequently, expats who have chosen to live elsewhere will not benefit from a state pension rise.

Instead, they will see their sum frozen at the amount the state pension was when they left the UK.

52 week saving challenge will leave you with over £1,300 by 2022’s end [LATEST]
State pension rules set to change – are you affected? [ANALYSIS]
How the 100 envelope savings challenge could help you save £5,000 [INSIGHT]

The campaign group End Frozen Pensions estimates 500,000 people could be missing out on this increase.

This is the case for Valerie, a 78-year-old woman who moved to South Africa.

She told the group: “It is frightening to think about the future as food, rates and taxes, fuel etc are going up all the time, but our income stays the same.

“We paid National Insurance contributions after leaving the UK, thinking our pension would be secure.

“We did not realise that it would be frozen.”

The group has renewed its call for the Government to reconsider this policy, and provide increases to Britons living overseas.

It has highlighted what it sees as the Government’s “unfair and discriminatory” frozen pensions policy.

Paul Gaffney, the End Frozen Pensions Campaign spokesperson, previously told “Depending on nation to nation, some countries provide some support, but other pensioners are struggling.

“For some individuals who aren’t living in countries with a support mechanism in place it can be a real and genuine struggle.

What is happening where you live? Find out by adding your postcode or visit InYourArea

“They miss out on things they expect they have in retirement, as we’re all told and taught a pension is to protect yourself in retirement.

“But these people aren’t getting the support they thought they would get and be entitled to in retirement.

“However, it’s not just what they thought they would get, it’s also what they fundamentally deserve.”

Those who live abroad and who are concerned about their state pension can contact the International Pension Centre for further assistance.

A DWP spokesperson recently told “We understand that people move abroad for many reasons and that this can impact on their finances. 

“There is information on GOV.UK about what the effect of going abroad will be on entitlement to the UK state pension. 

“The Government’s policy on the up-rating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”

Source: Read Full Article