Index Linked Pensions for Expats

There is a particular anomaly in the way that British expats are treated when it comes to them getting their pensions. In some countires the British pensions that the expats receive are index linked, and in others they are not index-linked pensions, they are just frozen from the date they start.

Here is an example of the scenario:

Mr X emigrates to Canada in mid working life.He is around 45 years old. He spends the next 20years in Canada, but then decides to return to the UK just before his 65th birthday. He will get his full basic pension which is fully index-linked.

b. Mr Y spends his whole working life in the UK, looks forward to his retirement and then finally and retires with a full pension. However, he emigrates to Canada just after his 65th birthday. His pension is not index linked, and is frozen at the starting amount.

If Mr Y had gone to the USA however, his pension would be index-linked, and if he had gone to any of the countries that are members of the European Union, he would have got a full index-linked pension.

As a result of the present British policy, Britons who retire to 48, mostly Commonwealth, countries have their pensions frozen at the UK rate in force at the date they emigrate (or reach pensionable age after emigration). Yet Britons who retire to EU nations, the USA, Israel, Turkey and several other countries maintain parity with UK-based pensioners.


Health and Medical Insurance for Expats.
Suggestions, hints and advice on arranging medical insurance.

Pensions frozen for Brits moving abroad.
When is an index linked pension not index linked?

Transferring pensions abroad.

How do you transfer pensions abroad?

UK Expatriate Savings Plans
What kind of plans are there and what are the risks?

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