UK Pension Changes to Hit Future Expat Retirees

Expat Globe

Despite the image projected in the popular press not all expats are high net worth individuals living off their millions in Monte Carlo.

There is a huge community of British expat retirees living all over Europe and beyond that rely on their UK state pension to make ends meet. Many retirees will have failed to save adequately through a personal pension and will therefore pay much attention to changes to the state pension being considered by the UK government.

In April 2017 the UK state pension will rise to £144 per week but expat pensioners should wait before celebrating. As part of the changes, new rules will be put in place meaning that the state pension is only claimable by people who have worked and paid into the system through National Insurance contributions for 35 years.

This is up from the current requirement of 30 years of contributions meaning that potential expats will have to work for longer in the UK before emigrating for their retirement.

Something else that British expats need to consider is an updated residency test that will put a renewed focus on the number of days spent in the UK.

The changes mean that it is more important than ever for expats and those those thinking about retiring abroad to save privately for their retirement. In order to maximise your retirement income it is important to seek the advice of an expat focussed Independent Financial Advisor.