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 

Written by Debbie McTaggart