Both the basic and the new state pension rates will go up in April this year by 2.5 percent. This is thanks to the triple lock, a mechanism which sees the UK state pension rise annually by whichever is the highest out of the average percentage growth in wages in Great Britain, the the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI), and 2.5 percent.
However much a person is entitled to, some people will miss out on the annual increase in April due to where they live.
The End Frozen Pensions campaign estimates 520,000 British pensioners miss out on the uprating of the state pension due to the countries in which they live overseas.
The government website explains the rules on how the UK state pension may be affected by living abroad.
Guidance states: “Your State Pension will only increase each year if you live in:
- The European Economic Area (EEA)
- Countries that have a social security agreement with the UK (but you cannot get increases in Canada or New Zealand)
“You will not get yearly increases if you live outside these…