“The government has now written to pensioners living in the EU to confirm that the uprating guarantee will continue to apply to their state pension for another three years. This will be cold comfort for many and simply serve to extend the period of uncertainty. It remains to be seen whether the government will be able to negotiate a new arrangement to ensure this policy continues. At worst, it could result in state pensions being used as a bargaining tool in wider negotiations.
“With many people living into their nineties and beyond, a three year guarantee will be woefully inadequate and only serve to increase their anxiety. It is commendable that the government has set up a dedicated call centre as they need 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.”