“The government’s plans to limit the uprating guarantee for UK state pension recipients living in the EU to just three years was intended to provide some certainty but could end up producing anxiety around pensioner incomes. The government is hoping it can negotiate a new arrangement to ensure this policy continues, however as we have seen since the EU referendum this can be fraught with complexities and may result in state pensions being used as a pawn in wider negotiations.
“As such, given the guarantee is for only three years, and some can expect to live through their retirement to over 100, this announcement will give expat pensioners little comfort. The government needs to ensure expats are well informed about this decision, what it means for their monthly income and present the alternatives well in advance of the three years expiring. This will allow expats to appropriately adapt their financial plans and give them enough time to prepare for new rules around their income growing.”