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State Retirement Pensions: British Nationals Abroad

Answer

The policy of this Coalition Government on the up-rating of UK state pension paid to people living overseas is the same as that of successive post-war Governments. This is to up-rate such pensions where we are legally required to under the terms of EU law or a bilateral social security agreement. The up-rating policy is determined by the differing social security arrangements for the countries concerned. Most bilateral agreements were entered into over 40 years ago and based on the prevailing economic and social conditions such as labour market migration patterns – in both the UK and the other countries. The Commonwealth Charter, while it provides a broad statement of common values, does not overrule national legislation in commonwealth countries.

Around 13 million UK state pensions are paid to those entitled, of which around 1.2 million are paid to those living outside the UK. Approximately 550,000 pensioners live in countries in which the UK state pension is not up-rated. The UK state pension is paid on the basis of National Insurance contributions and not on the basis of nationality or citizenship. Information on the nationality, citizenship and ethnicity of state pension recipients is not available. There is no evidence of a proven behavioural link between up-rating policy and pensioner migration. Many of the pensioners migrated well before they reached State Pension age. Only a small minority of UK state pension recipients, less than five per cent, moved overseas at retirement. However it remains important that those planning to live overseas consider the impact on their state pension. The decision to move abroad remains a personal choice for individuals.

Secondary information

Type

Written question

Reference

HL4763

Session

2014-15

Grouped for answer

Yes

Subjects

British nationals abroad Pensioners State retirement pensions Uprating Emigration

Link

View this Written question on www.parliament.uk