Overseas UK Pensions ‘Blocked for Spouses’

The government plans to stop giving the British state pension based solely on the work history of a spouse, to people living abroad.

According to the pensions Minister Steve Webb many of those have claimed a married person’s allowance had never in fact lived in the UK. The Legal Stop advises to enable yourself with a good retirement policy template, in order to arrange this matter.

This payment costs the UK about of £410m a year as those who receive it are about  220,000 residents living overseas.

This proposal will be announced in the Queen’s Speech on Wednesday. People who currently get this pension will not be affected.

For the future the money pensioners will receive will be based on their personal contributions during their individual working life.

Nowadays spouses are allowed to claim a “married person’s allowance” of up to £66 per week based on their husband or wife’s history.

The number of people who live overseas but are married to British citizens rises all the time and these are usually the people who claim such pensions.

Mr Webb told the Daily Telegraph:

“Say you are an American man and you marry a British woman, you can claim, if she has a full record of contributions, a pension of £3,500 a year for your entire retirement having never paid a penny in National Insurance.”

In he words of Norman Cudmore, this decision of the government is not loyal as he had served in the RAF for 22 years and worked overseas for another 16 years. Now he lived in the Philippines with his Filipina wife hoping she would receive some money in case he passed away.

The people who nowadays pay into a second state pension will lose their money as it will be abolished.

Tom McPhail, head of pensions research at Hargreaves Lansdown, said:

“From 2016 onwards the state pension will be based entirely on your individual record and there will be no inheritance of state pension rights,” he said.