Expats with full state pensions to get £220 bonus
Expats with full state pensions will enjoy a £220 boost next year, more than the increase in the cost of living, thanks to the triple lock protection.
The full state pension will be worth £168.60 per week, or £8,767.20 after rising from £164.35 a week – above the rate of inflation.
The level of the state pension rises every year by the highest of 2.5%, growth in earnings or Consumer Price Index (CPI) inflation. This is thanks to the ‘triple lock’ guarantee, which has given retirees’ incomes a strong boost since it was first introduced in 2010.
The triple lock offers an annual state pension increase of 2.5% or a rise in line with inflation or average earnings.
Inflation was clocked at 2.4% in September 2018 – the month the figures for the increase are taken.
Those on the lower old basic state pension will see a rise from £125.95 to at least £129.10, an annual rise of £163 per year.
However, the increase will only be paid to expats in the EU and countries with a reciprocal social security benefit treaty with the UK.
Elsewhere, expat state pensions are frozen at the level of the first payment received.
Nathan Long, senior pension analyst at Hargreaves Lansdowne said:
“Having at least some secure income in retirement is important for nearly everyone, making the state pension fundamental to the UK’s pension system.
“Increasing payouts using the triple lock keeps pensioners insulated from the difficulties workers are facing, where inflation is rising faster than wages, but this will do little to bolster the pockets of pensioners living in poverty.”
The government reaffirmed its commitment to the state pension triple lock for the remaining duration of this Parliament.