Over 100,000 UK pensioners in Canada miss annual increases due to lack of reciprocal agreement
More than 100,000 UK expatriates living in Canada are among 453,000 overseas pensioners affected by the UK's ‘frozen’ pensions policy.
According to Cambridgeshire Live, the Department for Work and Pensions (DWP) rules prevent annual increases to the State Pension for recipients residing in countries without a relevant reciprocal social security agreement.
Although UK State Pension is payable abroad, it is not 'uprated' annually unless legally required.
As per Birmingham Live, pensions remain at the rate established when the individual either retired overseas or became entitled while already living abroad.
This results in an estimated £470 deficit in bank accounts for half a million state pensioners globally.
Edwina Melville-Grey, chair of End Frozen Pensions Canada, stated, “We don’t imagine for a moment that Carney will be reliant on whatever UK State Pension he might be entitled to.”
She added that many thousands of UK State Pensioners living in affected countries, including Canada, “see their UK State Pension as a vital lifeline helping them through arduous times.”
Campaigners are urging Canadian Prime Minister Mark Carney to prioritise this issue.
“We know that he has many immense challenges on his desk right now and wish him well in meeting those,” Melville-Grey said.
“But we hope he will be able, when the time is right, to meet with our lead campaigner on this issue, 100-year-old Anne Puckridge.”
John Duguid, chair of End Frozen Pensions International, said more needs to be done to address the ‘frozen’ pensions policy in diplomatic settings.
He added that “the election of Mark Carney as Canada’s Prime Minister paints the perfect opportunity to do so.”
He said the current political focus on trade and negotiations highlights that “the cost to unfreeze pensions is extremely modest.”
He added that this would serve as “an essential lifeline to many affected pensioners who are struggling to make ends meet.”
Puckridge shared her experience under the policy, saying, “I can’t remember when I bought anything new, and I have to limit even essential purchases to thrift and similar stores.”
She added that social activity and entertainment are mostly just memories, and occasions like Christmas or birthdays are now “embarrassing rather than exciting events.”
The Department for Work and Pensions (DWP) previously addressed concerns by stating, “We understand people move abroad for many reasons.”
It added that the department provides clear information on how this affects retirement finances, noting that “the policy on the uprating of the UK state pension for recipients living overseas [is] a longstanding one.”
