As the General Election looms, campaigners are urging for change regarding frozen pension rules.
The state pension increases every April in line with the triple lock promise, however there are several popular retirement destinations where the state pension does not get increased.
The most recent figures show there were just over 450,000 people living overseas who were not getting state pension increases in March 2023.
The International Consortium of British Pensioners is campaigning for justice for retirees living overseas in places such as Australia, New Zealand and Canada.
Although most political parties have pledged to maintain the state pension triple lock, there has been no mention of those abroad.
The state pension triple lock ensures the state pension rises each year by whichever is highest out of: inflation (using the previous September rate of Consumer Prices Index inflation), wages (average growth between May and July), or 2.5 per cent.
The International Consortium of British Pensioners is campaigning for justice for retirees living oversea
GETTYThose who live in one of the countries without a reciprocal agreement to inflation link their state pension, have seen their payments ‘frozen’ at the same level it was when they left the UK.
Those in countries with reciprocal agreements are unaffected so if they were a pensioner in the USA they would continue to get an up-rating but if they lived just across the border in Canada they would not.
The Liberal Democrats have launched their Party manifesto which pledges to maintain the State Pension Triple Lock, in a move similar to that of Labour and the Conservatives - however no party has committed to frozen pensions.
Edwina Melville-Gray, board member of the International Consortium of British Pensioners (ICBP), said: “We are deeply disappointed by the lack of commitment in the Liberal Democrat manifesto, towards ending ‘frozen’ pensions and the longstanding injustice dealt to nearly half a million British pensioners living overseas.”
She added: “Despite this Party’s previous support on this issue, we are faced once again with empty promises and a political party unwilling to stand up for this key, yet further forgotten, group.”
The full new state pension is currently worth £221.20 per week, while the full basic state pension is set at £169.50 per week.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown said: "Different countries have different rules and regulations and it’s really important that you understand how these are going to affect you before you make the decision to retire abroad.
"For instance, tax rules can differ, and you could find yourself massively out of pocket if you fall foul of them.
“State pension is no different - it’s vital you check with the International Pension Centre about the rules before you go to save yourself a nasty shock.
"The government has been challenged on whether it could reverse the policy, but it has refused to do so on the basis of cost.”
A DWP spokesperson said: “Our priority is ensuring every pensioner receives the financial support to which they are entitled. We understand that people move abroad for many reasons and we provide clear information on GOV.UK about how this can impact their finances.
“The Government’s policy on the uprating 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.”
Retired expats in the European Economic Area (EEA) will continue to receive annual increases to their State Pensions under the Triple Lock, as will those in a host of other countries including the Philippines and Turkey.
