The changes to state pension payments coming for some people next year due to Brexit

A number of important changes to state pension payments are set to come into effect from next year.

More than 12 million people across the UK who have reached the UK Government’s eligible retirement age of 66 benefit from state pension payments every month.

However, the rules on how the UK state pension is calculated are changing next year, which will mean some important changes.

The changes, which have already been confirmed by the UK government, will apply to those who move abroad. This is due to the UK’s decision to leave the European Union.

Read more: Getting pension freedoms wrong ‘could cost you your benefits’

According to the government website, the changes will affect those who move to live in, or move between, an EU or European Economic Area (EEA) country or Switzerland and you have previously lived in:

  • Australia, before March 1, 2001
  • Canada
  • New Zealand

From January 1, 2022, these people will no longer be able to count periods living in Australia (before March 1, 2001), Canada or New Zealand towards calculating their UK State Pension if both the following apply:

  • you are a UK national, EU or EEA citizen or Swiss national
  • you move to live in the EU, EEA or Switzerland on or after January 1, 2022, including if you move to live in another EU, EEA country or Switzerland on or after January 1, 2022.


Video: Pension Credit: Are you Eligible? (Wales Online)

The change will affect you whether or not you have claimed your UK state pension yet. Your UK state pension will be calculated, or recalculated if already in payment, using only your UK National Insurance record.

Will you be affected by changes to pension payments? Let us know in the comments.

Who will not be affected by these changes?

According to the Department for Work and Pensions, you are not affected by the change if you either:

  • live in the UK, whatever your nationality
  • are a UK national, EU or EEA citizen or Swiss national who was living it the EU, EEA or Switzerland by December 31, 2021

“As long as you continue to live in the same country, you will still be able to count time living in Australia (before March 1, 2001), Canada or New Zealand to calculate your UK State Pension.

“If you live in an EU or EEA country or Switzerland, your UK State Pension will continue to be increased each year in line with the rate paid in the UK.”

What is the current state pension rate?

A 2.5% increase in state pension payments back in April means the full current state pension is £179.60 per week. The actual amount you get depends on your National Insurance record.

Anyone on the old full basic state pension receives £137.60 per week. You’re eligible for this pension if you were born before:

  • April 6, 1951 if you’re a man
  • April 6, 1953 if you’re a woman

If you were born on or after these dates you must claim the new state pension.

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