How UK State Pension Works for Expats with EU Brexit
The UK State pension is a predicable future indexed income. How does it work for Expats?
How is UK State Pension Impacted by EU Brexit for Expats?
ProACT Sam has the know how.
When Should I Apply for my UK State Pension?
You are notified by post 6 weeks before your state retirement age and must make a paper application by return.
On receipt of your application it will be processed and paid to you.
If there is a delay in processing, post or payment of state pension then you will receive pension payment backdated.
Expats can pay the pension to any bank account in the UK or around the world. It will be taxed in the UK unless you register it under a Double Taxation treaty to be paid gross in the UK and taxed overseas.
Can the State Pension Payment be Postponed?
You could choose to delay the receipt of state pension. You receive a credit for deferment of a 1% increase in your State pension for every 9 weeks deferred, which works out to around 5.8% per year uplift.
If your pension is £100 per week,
then a deferred pension will become;
£101 per week after 9 weeks
£105.8 per week after a one year deferment
The extra amount is paid every week of your life, but stops on death.
How Many Years do I need to Contribute for a UK State Pension?
UK State Pensions have changed, if you are born up to April 1953 you may qualify for the Basic state pension with a minimum of 10 years National Insurance (NI) contributions and a maximum of 30 years.
Your date of birth and sex determines the exact retirement date and entitlement
The last BASIC State pensions were paid in 2016, unless deferred.
The New State pension is for men born after 6/4/1951 or women born after 6/4/1953. Again a minimum 10 year National Insurance contribution is required but a longer 35 year contribution history.
The pension is a flat rate per week of: £164.35
In Year: 2018/19
Is My UK State Pension Indexed Linked?
The pension is indexed linked for inflation on certain conditions. If you live in the UK or one of a select number of countries with whom a bilateral social security agreement exists with the UK.
The UK has a social Security Agreement within the EU.
This will continue during any Tranistion Period.
The proposed Withdrawal Treaty contains provision to allow the UK EU social security agreement to continue.
Continued Indexation of State Pension is subject to a UK EU bilateral social insurance agreement being agreed long term.
EU for this purpose includes the EEA countries ( all EU 28 plus Iceland, Norway, Liechtenstein), and Gibraltar and Switzerland.
Other countries with a bilateral social security agreement include the British Isles, the former Yugoslavia states generally, some Caribbean islands, Israel, USA, Turkey and the Philippines.
This situation may change post EU Brexit as more Bilateral Social Security Agreements are made.
ProACT Can Help
ProACT Partnership Expatriate Advice can offer guidance and advice to expats for family and business Investment in Cyprus.
ProACT Expat Experts can offer guidance on how Brexit affect expects residency, medical, taxation and business status.
Get a copy of our guide: How EU Brexit for Expats Affects overseas property, business and Pensions.
Contact us, ProACT EU Brexit for Expats Experts, for a free review and guidance.