Go Back  British Expats > Living & Moving Abroad > Moving back or to the UK
Reload this Page >

State pension index linking for returned brits?

State pension index linking for returned brits?

Old Apr 7th 2021, 5:26 am
  #1  
BE Forum Addict
Thread Starter
 
freebo's Avatar
 
Joined: Feb 2008
Location: Hope Island, Gold Coast
Posts: 1,913
freebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond repute
Default State pension index linking for returned brits?

Just doing my retirement sums.

I'm in the process of topping up our UK state pensions, its pretty cheap and I'll get it regardless of which country I retire in.

As I've been in Australia for 10+ years I know if I retire here I'll get the UK new State Pension but it won't be index linked.

What if I come back for good before retirement age? Will it then be index linked and any impact on it?

Last edited by freebo; Apr 7th 2021 at 5:55 am.
freebo is offline  
Old Apr 7th 2021, 3:10 pm
  #2  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,891
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: State pension index linking for returned brits?

I think that whenever you come back the pension will reset to the current amount for the number of years contributions you have made then continue to be index linked. For example if you start receiving OAP in Australia at £100/week then it will stay fixed at that value unless you return and become resident in the UK at which point it will immediately change to the value for those years of contributions so may jump to say £130/week
durham_lad is offline  
Old Apr 8th 2021, 5:17 am
  #3  
Forum Regular
 
Joined: May 2018
Location: North Yorkshire
Posts: 76
Beraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond reputeBeraider has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by durham_lad View Post
I think that whenever you come back the pension will reset to the current amount for the number of years contributions you have made then continue to be index linked. For example if you start receiving OAP in Australia at £100/week then it will stay fixed at that value unless you return and become resident in the UK at which point it will immediately change to the value for those years of contributions so may jump to say £130/week
I agree.
Beraider is offline  
Old Apr 8th 2021, 5:40 am
  #4  
Concierge
 
spouse of scouse's Avatar
 
Joined: Jan 2013
Location: Western Australia
Posts: 17,645
spouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by durham_lad View Post
I think that whenever you come back the pension will reset to the current amount for the number of years contributions you have made then continue to be index linked. For example if you start receiving OAP in Australia at £100/week then it will stay fixed at that value unless you return and become resident in the UK at which point it will immediately change to the value for those years of contributions so may jump to say £130/week
Exactly this. Also, if after living permanently in UK and having your pension uprated to the current rate you then decide to move overseas again, your pension will stay at the 'new' rate in a country without a SS agreement with the UK, or will continue to be indexed in a country that does have this agreement.
spouse of scouse is offline  
Old Apr 8th 2021, 6:11 am
  #5  
BE Forum Addict
Thread Starter
 
freebo's Avatar
 
Joined: Feb 2008
Location: Hope Island, Gold Coast
Posts: 1,913
freebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by durham_lad View Post
I think that whenever you come back the pension will reset to the current amount for the number of years contributions you have made then continue to be index linked. For example if you start receiving OAP in Australia at £100/week then it will stay fixed at that value unless you return and become resident in the UK at which point it will immediately change to the value for those years of contributions so may jump to say £130/week
OK, got it, but if I come back before retirement age will I receive the full New State Pension (assuming I've paid up all the required NI), then have it index linked from then on, i.e. as if I'd never been away?
freebo is offline  
Old Apr 8th 2021, 6:41 am
  #6  
Concierge
 
spouse of scouse's Avatar
 
Joined: Jan 2013
Location: Western Australia
Posts: 17,645
spouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by freebo View Post
OK, got it, but if I come back before retirement age will I receive the full New State Pension (assuming I've paid up all the required NI), then have it index linked from then on, i.e. as if I'd never been away?
Yes, once you actually reach the UK State pension age of course.
spouse of scouse is offline  
Old Apr 8th 2021, 7:49 am
  #7  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,891
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by freebo View Post
OK, got it, but if I come back before retirement age will I receive the full New State Pension (assuming I've paid up all the required NI), then have it index linked from then on, i.e. as if I'd never been away?
Yes, and I speak from personal experience having spent 29 years in the USA, and started receiving my OAP this year. While I did pay voluntary NI I ended up with 31 years so not quite a full pension.
durham_lad is offline  
Old Apr 8th 2021, 11:34 pm
  #8  
BE Forum Addict
Thread Starter
 
freebo's Avatar
 
Joined: Feb 2008
Location: Hope Island, Gold Coast
Posts: 1,913
freebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond reputefreebo has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by durham_lad View Post
Yes, and I speak from personal experience having spent 29 years in the USA, and started receiving my OAP this year. While I did pay voluntary NI I ended up with 31 years so not quite a full pension.
That's good to hear, did the USA have the index-linking arrangement? Australia doesn't. i.e. if you had stayed in the USA would your payment still be index linked?
freebo is offline  
Old Apr 9th 2021, 1:49 am
  #9  
BE Forum Addict
 
ianandhelena's Avatar
 
Joined: Aug 2005
Location: Kingston, Tas
Posts: 2,182
ianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond reputeianandhelena has a reputation beyond repute
Default Re: State pension index linking for returned brits?

https://www.gov.uk/government/public...-state-pension
ianandhelena is offline  
Old Apr 9th 2021, 2:01 am
  #10  
Concierge
 
spouse of scouse's Avatar
 
Joined: Jan 2013
Location: Western Australia
Posts: 17,645
spouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by freebo View Post
That's good to hear, did the USA have the index-linking arrangement? Australia doesn't. i.e. if you had stayed in the USA would your payment still be index linked?
I know you're asking durham lad these questions, but I'll risk another reply in an attempt to help..

It makes no difference that you've been living in a country (Australia) that doesn't have an 'index linking arrangement' (Social Security agreement) with the UK.

If you return to the UK, whether before your State pension age or after, you'll get the same amount of State pension as everyone else in the UK who has paid the same amount of NI contributions as you, and you will also receive the yearly increases.


spouse of scouse is offline  
Old Apr 9th 2021, 7:14 am
  #11  
BE Forum Addict
 
Joined: May 2007
Location: England
Posts: 3,703
brits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond reputebrits1 has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by freebo View Post
Just doing my retirement sums.

I'm in the process of topping up our UK state pensions, its pretty cheap and I'll get it regardless of which country I retire in.

As I've been in Australia for 10+ years I know if I retire here I'll get the UK new State Pension but it won't be index linked.

What if I come back for good before retirement age? Will it then be index linked and any impact on it?
Hi, just curious as to when you say that "topping up" was pretty cheap....can I ask how cheap? A friend lives in Australia and is looking to do the same thing as they have not really worked that often in their 10 years in Australia for a few reasons but has started working now.
brits1 is offline  
Old Apr 9th 2021, 7:33 am
  #12  
SUPER MODERATOR
 
christmasoompa's Avatar
 
Joined: Oct 2007
Location: In a darkened room somewhere.............
Posts: 30,737
christmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by brits1 View Post
Hi, just curious as to when you say that "topping up" was pretty cheap....can I ask how cheap? A friend lives in Australia and is looking to do the same thing as they have not really worked that often in their 10 years in Australia for a few reasons but has started working now.
Really, really cheap, compared to what you can potentially get back. If they qualify for Class 2, then it’s just over £150 a year. https://www.gov.uk/voluntary-nationa...ibutions/rates

And he can pay voluntary contributions even if not working in Oz.

HTH.
christmasoompa is offline  
Old Apr 9th 2021, 1:51 pm
  #13  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,891
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by spouse of scouse View Post
I know you're asking durham lad these questions, but I'll risk another reply in an attempt to help..

It makes no difference that you've been living in a country (Australia) that doesn't have an 'index linking arrangement' (Social Security agreement) with the UK.

If you return to the UK, whether before your State pension age or after, you'll get the same amount of State pension as everyone else in the UK who has paid the same amount of NI contributions as you, and you will also receive the yearly increases.
Exactly right.
durham_lad is offline  
Old Apr 11th 2021, 2:15 am
  #14  
Forum Regular
 
Joined: Dec 2008
Posts: 68
tdrinker is an unknown quantity at this point
Default Re: State pension index linking for returned brits?

Originally Posted by spouse of scouse View Post
Exactly this. Also, if after living permanently in UK and having your pension uprated to the current rate you then decide to move overseas again, your pension will stay at the 'new' rate in a country without a SS agreement with the UK, or will continue to be indexed in a country that does have this agreement.
Is there a minimum qualifying period you have to live in the UK to retain the uprated pension amount if going overseas again, rather than it reverting to its previous lower overseas amount? I read elsewhere 2 years, but can't find any official policy.
tdrinker is offline  
Old Apr 11th 2021, 7:45 am
  #15  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,891
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: State pension index linking for returned brits?

Originally Posted by tdrinker View Post
Is there a minimum qualifying period you have to live in the UK to retain the uprated pension amount if going overseas again, rather than it reverting to its previous lower overseas amount? I read elsewhere 2 years, but can't find any official policy.
I couldn’t find any official policy either, but I think that once you start receiving the new updated pension that if you leave again then it will be frozen at the current rate. If I was in that situation I would contact DWP and check before leaving.
durham_lad is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.