The Rising UK State Pension Age Affecting Global QROPS Ltd Clients
Posted by Simon Harvey on 03/09/09 13:34
Many clients of Global QROPS Ltd, ask whether they should make additional contributions to their UK State Pensions (sometimes referred to as the Old Age pension) before they migrate. With the recent news of a potentially increasing UK State Pension Age, it is important that Global QROPS Ltd clients make the correct decision.
People migrating, who have built up enough credit in the UK State Pension, to qualify for part of the UK State Pension, question whether they should make additional contributions to their UK State Pension to receive the full entitlement. This is particularly important for people migrating to a country that does not have a social security agreement with the UK, such as Australia, where overseas social security contributions do not count towards the UK State Pension.
One of the main considerations, as to whether to top-up your UK State Pension, is when are you entitled to the benefit? Currently the UK State Pension age is 65 for men and 60 for women (although the State pension age for women born after 6th October 1950 is increasing on a sliding scale to age 65 for women born from October 1954 onwards).
According to the UK Pensions Regulator, the current plans to increase the State Pension age to 68 from 2044 onwards could be further increased to age 70 for everyone. This has lead to many Global QROPS Ltd clients, who are still several years from retirement, being sceptical about how old they would finally need to be before they can claim the UK State Pension and whether there would be any benefit in making the additional contributions before migration.