[JandM]

My mother today showed me an article in Money Which? magazine, called Retiring Abroad... Our experts explain the rules. And here's what part of it says.

Getting a pension abroad
Q. My wife and I are retiring soon and are planning to maove abroad. Will we still be eligible to receive state pension and if so, how do we claim it?
A. If you are retiring abroad you are still eligible to receive a UK state pension. However, you will not be entitled to any increases that people lvingin the UK receive, unless ou are moving to a country in the European Economic area (EEA) or one with which the Uk has a social security agreement (commonly called a 'reciprocal agreement'). The UK has these agreements with some countries, including the US, Canada and New Zealand, but not Australia, so if you retire 'Down Under' your state pension will not increase. To claim your state pension abroad, contact the International Pension Centre.

Now, this is all very fine. Only I've always understood, ever since I started looking into moving to NZ, that we'd fall into the category of those whose pension WON'T get the increases. I've looked on the websites that this same article quotes, and, although there are various disclaimers that they are in the process of being updated, it still says everywhere I've found that in NZ, a UK pensioner's state pension will remain at the same level it was when they left the UK.

Has there been a change, or has the 'expert' who wrote this article made a mistake? Does anybody know?

[TrentBridge]

I've looked into this too over the last few weeks and I've come to the same conclusion as you JandM; the UK state pension is payable in NZ but is not index linked.

Would be great if this changed though.

S

[JandM]

Well, watching this space....:D

[IanW99]

Certainly the reciprocal agreement (posted under child benefit recently) clearly states that the pension will not increase.

That document is 2005 so it's possible that this rule has changed since then. Might be worth someone contacting the international pension centre?

The other possibility is that the information is just mis-leading? The way I read the NZ pension scheme (superannuation) is that you can use time in UK towards it, and vice-versa and any money you get from the UK pension they take off you from the NZ pension. So assuming that the NZ pension will increase over time and the UK one won't then overall the amount you would get would increase - just the percentages will change.

So, if this information is correct, then maybe that is what they mean?

Ian

[JandM]

Certainly the reciprocal agreement (posted under child benefit recently) clearly states that the pension will not increase.

That document is 2005 so it's possible that this rule has changed since then. Might be worth someone contacting the international pension centre?

The other possibility is that the information is just mis-leading? The way I read the NZ pension scheme (superannuation) is that you can use time in UK towards it, and vice-versa and any money you get from the UK pension they take off you from the NZ pension. So assuming that the NZ pension will increase over time and the UK one won't then overall the amount you would get would increase - just the percentages will change.

So, if this information is correct, then maybe that is what they mean?

Ian

That's an interesting way of looking at it. Could you please post the link to where you're reading about NZ superannuation?

Yes, it'd probably be worth contacting the International Pensions Centre. I've been staggered by how much to do with pensions and retirement the individual has to do, and chase up, themself. Foolishly, as I now see, I'd always assumed that, with all that the state knows about us, things would happen automatically. (Hollow laughter.) This'll be just one more angle to add.:D

So... nobody here has already gone through this process, then?

[CJ22]

As I understand it, the UK portion of your pension is frozen at the point you leave the UK. Your pension is topped-up by NZ to whatever level it is at the moment. So, in effect, your pension is index linked (or whatever mechanism they use in NZ), but the UK contribution never goes up. You still always get the full NZ pension, as far as I know.

However, I am prepared to be hopelessly wrong about that.

[IanW99]

That's an interesting way of looking at it. Could you please post the link to where you're reading about NZ superannuation?

...


The information I was reading comes out of the SA8 document I posted previously, the details start on page 9 but the main part is here:-

Effect of the agreement on entitlement to New Zealand Superannuation

The agreement may help you to qualify for New Zealand Superannuation when you have reached pension age in New Zealand by allowing you to treat your residence in the UK as residence in New Zealand.

If you qualify for New Zealand benefit, the amount of your UK State Pension (including any additions payable with the pension) will be deducted from the New Zealand benefit which would otherwise be payable to you.

I have seen some of this same sort of info on some NZ govt websites (can't remember which ones of hand) so worth a search.

Ian

[IanW99]

Here's a link to NZ website detailing the same information:- New Zealand Superannuation (http://www.workandincome.govt.nz/manuals-and-procedures/to_or_from_overseas/reciprocal_agreements/reciprocal_united_kingdom/reciprocal_united_kingdom-05.htm)

And here's a similar link to the same website but it has links to other countries also, maybe useful for other benefits including other countries:- To Or From Overseas (http://www.workandincome.govt.nz/manuals-and-procedures/to_or_from_overseas/index.htm)

Ian

[JandM]

Thanks, Ian and CJ.