Keithtoon

UK State Pension

You can carry on receiving your UK State Pension if you move to live in the EU, EEA or Switzerland and you can still claim your UK State Pension from these countries.

Your UK State Pension will be increased each year in the EU in line with the rate paid in the UK.

You can also count relevant social security contributions made in EU countries to meet the qualifying conditions for a UK State Pension.
SOURCE:
https://www.gov.uk/guidance/benefits...or-switzerland

This guidance is for UK nationals, however these rules on the State Pension apply to everyone regardless of your nationality and regardless of when you moved.

Notdunroamin

This was news in January.

https://www.yourmoney.com/retirement...-post-brexit/#

Keithtoon

Ha,
I've just had a Email from Gov.uk!
At least its increasing yearly, thought if was going to be frozen after 31 Dec.
I was not aware of that till today.... makes me happy.

missile

Be great if it was increased to match pensions paid by the EU member countries.

Lynn R

Hardly likely to happen unless tax and social security contributions are increased to the level paid by EU member countries - and top ups such as Winter Fuel Allowance, free prescriptions, free spectacles, hearing aids and dental treatment, free bus travel (and free rail travel in London) available to all pensioners regardless of income in the UK, and Pension Credit, Council Tax exemption and Housing Benefit for those on the lowest pension incomes, are scrapped and all of those things have to be paid for out of the basic pension.

In Germany, for example, pensioners continue to have to pay compulsory health insurance after retirement (contributions are in excess of 15% of income). Would UK pensioners like to swap their free at the point of use NHS treatment for that?

https://www.sbk.org/sbk-en/advice/in...%20of%201.3%25.

bobd22

UK pensioners don't get free dental treatment, earing aids or spectacles? They get free eye tests. Only those on benefits get these things for free. The new single tier pension means that most benefits that were available to pensioners are no longer available hence single tier. Also for pension credit one has to have very limited savings.

chopera

These days the Spanish state pension is only generous for those lucky enough to find a job that pays a high base salary for at least 15 years. I suspect that will go up to 20 years soon enough. AFAIK the UK is also relatively generous with its private pension incentives, although annuities have been dire in recent years. I've yet to meet anyone in Spain with a decent company or private pension. The state pension and maybe renting out property are the only options here, and renting out property isn't so easy in Spain either.

missile

It appears to me, that the average Spanish State Pension is currently greater and one can retire earlier than in UK .......... see CAB Spain (citizensadvice.org.es)

rspltd

So if you take into account the exchange rate, then about the same but of course contributions in Spain are considerably higher.

Lynn R

I was just about to say the same, plus as I said earlier pensioners in the UK get more additional benefits (definitely do still get WFA, free bus travel and free prescriptions irrespective of income, even if only those on Pension Credit now get free dental treatment, etc).

And the non contributory pension in Spain for those who have not been able to contribute enough to qualify for a minimum state pension is €430 per month, with none of the additional benefits available to those who qualify for Pension Credit in the UK.

missile

are they?

Lynn R

And employer NI contributions in the UK are only 13.8%.

missile

Comparing different countries’ pensions is problematic because of the differences in pension systems. Data shows the UK State Pension is relatively low compared to other countries, no matter how you measure it.

spainrico

Cash in the properties worth zillions trade down (pay no tax) and pension sorted.

Not such a big option here

Lynn R

But you cannot just take one element (state pension) in isolation to reach any kind of conclusion about people's income in retirement.

I notice you didn't address the point I raised earlier about the fact that pensioners in Germany still have to pay compulsory health insurance in retirement. A pensioner in Germany pays 14% income tax on all income over €9,744 plus 15.9% health insurance, plus 3.05% social care insurance - a total of 33.04% in deductions from their income. Compared to a UK pensioner who pays 20% income tax on income over the personal allowance of 12,570 pounds and nothing more.

In Spain, once I start to receive my UK state pension next year I will be paying a third more in income tax than I would pay if I lived in the UK (I already pay some, a couple of hundred more than I would pay in UK), as I will no longer benefit from the Spanish low income allowance once my income goes over the relevant eligibility threshold. I won't get free prescriptions or free bus travel, or any help with domestic energy bills, unlike a UK pensioner with the same level of income.