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Frozen state pension payments: Half 1,000,000 pensioners lose out on hundreds every year | Personal Finance | Finance


On account of a historic policy, half 1,000,000 pensioners are missing out on hundreds attributable to them through the state pension. The UK Government will only increase state pension payments to individuals living in certain countries, and living anywhere else will see one’s sum frozen at the speed it was after they left.

Canada and Latest Zealand aren’t included in the ultimate category. 

The frozen rates have divided Britons, with some arguing that folks who leave a rustic mustn’t expect to maintain receiving its advantages. 

Others note that moving internationally will not be a light-hearted alternative, with some pensioners leaving to be closer to their remaining family. 

One Express.co.uk reader shared their personal experience with frozen pensions after moving to Thailand. 


Expattaffy1 said: “My state pension was capped at £71, 18 years ago.”

For comparison, Expatden recommends a budget of 35,000 baht (roughly £812) per 30 days to live in Bangkok, Pattaya, and Hua Hin.

This calculates to roughly £203 per week, greater than double Expattaffy1’s state pension income.

Luckily, Expattaffy1 has three other pensions to depend on, their private and workplace pension in addition to their late wife’s widows pension. 

Moreover, they shared: “With my totals hitting £660 per 30 days, and attributable to the low cost cost of living here in Thailand, lots higher off than within the UK.”

They highlighted that they felt “discriminated” by their alternative of where to live.

They continued: “If I moved from Thailand to Malaysia I might get my rises returned, nonetheless Australia doesn’t qualify but America does.”

Many individuals argue that folks who find their state pension frozen abroad haven’t done their due diligence before selecting where to reside. 

Nevertheless, Express.co.uk reader Therealrob argued: “These pensioners contributed to the NI scheme on the identical terms and conditions of their working lives as everyone else and now, in retirement, should give you the chance to attract their pensions on the identical terms and conditions as everyone else. 

“Whether or not they knew of the immoral policy or where they live should not have any relevance.”

One reader, Theoldone, explained each side of the argument saying: “There are two ways to have a look at the difficulty. 

“Firstly they paid in and due to this fact are entitled to the cash and, secondly, that [those of] us who paid in but stay within the UK get the cash but we spend all of it within the UK for every little thing from food to Council Tax and our fuel bills, which incorporates the VAT and Green Taxes that return to the federal government.”

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