Approximately 50% of British pensioners residing overseas are forced to deal with their state pension being compensated at the rate it had been when they left the UK. For those who have no idea about frozen pension, this is not a bad thing. However, the disfavor comes due to the fact that another 500, 000-plus British pensioners residing in foreign countries do benefit from the annual uprating in the state pension that current UK residents receive.
There are over 1.2 million British pensioners living abroad, comprising 10% of total UK pensioners. Yet, 46% of the total number of pensioners are suffering from frozen pension. This indicates that they’re not eligible for yearly increases and are only qualified for the sum they were originally offered at retirement. For some, this means living on a meager pension of at least £6 only every week.
Why is there an extreme imbalance with the state pension for Brits living overseas? Experts believe that the disparity boils down to historical grounds, which is relatively non-linear. For example, a British national who plans to move to Canada will have to accept the fact that his pension will be frozen. On the other hand, a British relocating to Switzerland can still anticipate and enjoy yearly increases just as if he’s still living in the UK.
The British government continues to be criticized for neglecting the undesirable situation of thousands and thousands of British pensioners residing abroad who have had their state pension frozen. In fact, the International Consortium of British Pensioners stated that the United Kingdom is the only nation in the Organisation for Economic Development and Cooperation that doesn’t uprate their state pension for every British pensioner irrespective of where they live. This is despite the reforms created to make state pensions fair for all Brits.
With the upcoming UK elections and political debates, many pensioners wonder if the frozen pension issue will finally move forward.