Claiming a State Pension is usually pretty simple. However, where you choose to spend your retirement can change your finances. There are a couple of things to take account of that could result in you losing money. If you plan on retiring abroad, there are certain things you should be aware of to make sure you get the maximum amount of money that is available to you.
State Pension is available to every Brit who has lived and worked in the UK, providing they have made a certain number of National Insurance contributions.
Workers needed to have 30 years of qualifying National Insurance contributions to get the old state pension, but they now need to have 35 years of contributions to get the new flat-rate state pension.
Once you reach State Pension age, you can claim whether you are in or out of work.
While most retirees remain in the UK for all or some of their retirement, others switch it up, usually for sunnier and more manageable climates.
State Pension is currently hiked every year according to the ‘triple lock’ – whichever is the highest of inflation, average earnings or 2.5 percent.
However, if you return to live permanently in the UK, your State Pension will go up to the current rate.
There are more than 100 countries that do not have such an agreement with the UK, and include popular destinations such as Canada, Australia, New Zealand, South Africa, Thailand and Indonesia.
The Government says: “The Government has a very clear position, which has remained consistent for around 70 years: the UK state pension is payable worldwide but is only uprated abroad where we have a legal requirement to do so or a reciprocal agreement is in place.”
Brexit caused concern that the 472,000 people who have retired to EU countries would lose their automatic annual increases, but negotiators reached early agreement on this in talks to agree a deal.
Unless the UK comes out without a deal, this is very unlikely to change.