Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

Brexit deal saves state pension rises

Open-access content Thursday 7th January 2021
Brexit deal saves state pension rises / iStock

UK citizens looking to retire in the European Economic Area (EEA) and Switzerland will receive the same increases to their state pension as those remaining in Britain, following the new Brexit deal.

There had been fears that pensioners moving to the EU could lose the 'triple lock' increases to their state pensions enjoyed by those living in the UK or in the EU before 31 December 2020.

A £175.20 a week state pension protected by the triple lock is worth around £327,000, whereas one that doesn’t increase is worth around £188,300, which is £138,700 less.

As well as protecting these increases, the Brexit deal confirmed that those working in the EEA or Switzerland can continue to count future social security contributions paid in overseas countries towards meeting ‘qualifying conditions’ for the UK state pension.

“Few people might have appreciated just how much was at stake here,” said Steven Cameron, pensions director at Aegon. “This April, the state pension will increase by 2.5% from £175.20 to £179.60 a week. 

“While £4.40 extra a week may not look huge, losing all future increases really adds up. With many people living 20 or more years after state pension age, any form of inflation proofing is highly valuable, with the triple lock particularly so.”

For those some way off state pension age living abroad, there was also welcome news that they will continue to receive ‘credits’ towards their UK pension under ‘social security co-ordination’.

Individuals need 35 years of credits to qualify for the full UK state pension while those with under 10 years receive no state pension.

“While the treatment of state pensions was clearly not top of the agenda in last-minute Brexit negotiations, the outcome will make a huge difference to those planning to move abroad in future for their retirement years,” Cameron continued.

“Fortunately, those planning to retire to the Costas won’t find Brexit has, in state pension terms, cost a fortune.”

 

Image credit: iStock

Author: Chris Seekings

Also filed in
News
Topics
Pensions
Global
Finance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ