Published On: Wed, Oct 23rd, 2019

State pension amount to rise next year: Full list of countries where payment increases | Personal Finance | Finance

The state pension is due to receive a pay rise of four per cent next year, in line with annual wage growth. This increase is set to come into effect in April 2020. The state pension is protected by the “triple lock”, which means it rises each year by whichever is the highest out of the average percentage growth in wages, the percentage growth in prices in the UK, and 2.5 percent. The uprated state pension applies to both the basic and new versions.

However, the rules differ when it comes to people who claim the UK state pension abroad.

The state pension only increases annually if a person lives in the European Economic Area (EEA), Gibraltar, Switzerland, and countries that have a social security agreement with the UK – however the uprated state pension cannot be received in Canada or New Zealand.

The website states a person will not get the yearly increases if they live outside of these countries.

If the individual returns to live in the UK, their pension will go up to the current rate.

Countries in the EEA

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Italy
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden

Countries the UK has a social security agreement with

  • Barbados
  • Bermuda
  • Bosnia-Herzegovina
  • Jersey
  • Guernsey
  • The Isle of Man
  • Israel
  • Jamaica
  • Kosovo
  • Macedonia
  • Mauritius
  • Montenegro
  • The Philippines
  • Serbia
  • Turkey
  • USA

While the UK has social security agreements with Canada and New Zealand, pensioners cannot get a yearly increase in the UK state pension if they live in either of these countries.

Last month, the Department for Work and Pensions announced the government is to continue to uprate the UK state pension paid to people living in the EU for the next three years in the event of a no deal Brexit.

Amber Rudd, who was Secretary of State for Work and Pensions at the time, announced the plans on September 1.

Ms Rudd said: “This government is working hard to prepare for leaving the EU on 31 October, whatever the circumstances.

“We will be fully ready for Brexit, and are leaving in a way that protects the interests of citizens here and in EU member states.

“This guarantee will provide reassurance to the hundreds of thousands of people living in the EU who receive a UK State Pension that their pensions will continue to rise significantly each year, however we leave.”

The commitment means that, should there be a no-deal Brexit, the UK state pension would continue to be uprated annually for those living in the EU, until March 2023.

During this time, the UK government plans to negotiate a new arrangement with the EU in order to ensure the uprating continues, the announcement said.

READ MORE: State pension overseas: Pensioners issued warning as favourite retirement hotspot revealed

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