Will your pension be affected?

UK pension reforms are set to affect those living outside the British Isles.

Will your pension be affected?

UK pension reforms are set to affect those living outside the British Isles. If you are expecting to receive a UK pension, then you may want to keep abreast of the latest news.

UK Pensions minister Steve Webb has announced reforms which will take effect from April 2016. Currently, spouses of British citizens, who have not made National Insurance (NI) contributions of their own, can claim a married persons allowance of up to £66 per week, based on their husband or wife’s NI history. There are currently 200,000 overseas residents claiming this allowance which costs the UK Government £410 million per annum.

From 2016 onwards the right to a British state pension will be based solely on your NI contributions. You will no longer be able to pay into a second state pension to ensure spousal rights to a pension. The full state pension will be worth £144 per week, although this may be reduced unless you have 35 years of NI contributions and will not be means tested.

The changes will not affect those who are currently claiming the married persons allowance.

To find out more visit BBC.co.uk 



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    COMMENTS

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    oldileaks
    16th May 2013
    5:46pm
    For those of you who wish to know more about UK State pensions, British Pensions in Australia is a volunteer organisation which is campaigning for the unfreezing of the UK State Pension paid to persons living in Australia. We also offer free advice on how to plan to maximise your UK State Pension and to claim your full entitlements. 1300 308 353 www.bpia.org.au


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