Hundreds of thousands of UK expat pensioners are set to miss out on a key financial boost this year, warns the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The warning from Nigel Green of deVere Group, which has more than 80,000 expat clients globally, comes as UK state pension payments are scheduled to rise by an impressive 8.5% from April 8 2024.
For those receiving the full New State Pension, the anticipated annual increase amounts to a noteworthy £902. This substantial boost is a result of the 8.5% uplift and is poised to make a significant difference in the lives of pensioners who rely on this income stream.
However, the deVere Group CEO says: “Scandalously, not all pensioners are set to benefit from this positive development.
“At least 500,000 retired Britons living abroad will not receive any boost to their pensions. Instead, they will continue to grapple with the freeze in the value of their pensions at the point of their retirement date or the date of emigration.”
Nigel Green is publicly expressing his outrage, emphasizing that freezing pensions for retirees living abroad is an “unfair practice.”
Retired expats in the European Economic Area (EEA) will continue to receive annual increases to their state pensions under the triple lock scheme, as will those in a host of other countries including the US, the Philippines and Turkey.
“The majority of affected pensioners live in some of the biggest Commonwealth countries, such as Australia and Canada,” he observes.
“Despite paying taxes all their working lives in the UK, and the national insurance in full, these Brits will completely miss out on the rise given to others.
“It’s completely unjust that someone living in the US will receive an extra £1,000, yet someone just across the border in Canada, in the same situation, will not.”
This group of retirees, often with roots in the UK, finds themselves at a disadvantage compared to their counterparts receiving State Pension within the country and many other countries around the world.
Nigel Green’s criticism underscores the need for a comprehensive review of the State Pension system to address these injustices and ensure that all retirees, regardless of their geographical location, receive fair and just treatment.
He concludes: “The impending 8.5% increase in State Pension payments for millions of recipients in the UK is a positive development that will undoubtedly alleviate financial concerns for many retirees.
“However, the stark contrast faced by many UK expats, with their pensions frozen, highlights a systemic issue that warrants careful consideration and reform.”