The Confusing Complications Frozen Pension Brings

For many years now, regulations that state British people who retire overseas and all are eligible for the UK state pension. However, overseas pensioners may or may NOT get the yearly pension increase. The clincher is dependent upon the reciprocal agreement United Kingdom has (or not) with the other nation. Present agreements are a mishmash. About 650,000 pensioners do not get the yearly state pension increase because of the lack of agreement between UK and the country they’re living in right now. Some of these countries are Canada, Australia, and New Zealand. Brits living in South Africa, Botswana, and China don’t get the annual uprate, too. As soon as a British national moves to any of these nations and steps inside the plane, the rules on frozen pension take place.

What makes the frozen pension complicated is the fact that some countries have mutual agreements with the UK. And Brits relocating to these countries can still enjoy the yearly increase in their state pension. In addition to the US, Brits living in the Philippines, Turkey and Bermuda get the yearly boost in pension rate. Also, the European Union has rules set up curtailing the freezing of state pensions to these countries.

For an ordinary British worker who wishes to find a greener pasture outside the UK these agreements can be confusing. This is also true with retired UK workers who want to enjoy their retirement abroad. To avoid confusion and misinterpretation about frozen pension, it’s important to ask the help of a solicitor or retirement plan advisor. Hire a professional that has the skills, experience, and expertise to sort this predicament out. A solicitor can help confused Brits understand what a relocation to another country will do to their pension plans. He can also give expert advice to both current and retired workers on how to avoid getting their state pension frozen.