An introduction to UK pension systems—the state pension, state second pension and single-tier state pension
Produced in partnership with John Hayward, Pensions author
An introduction to UK pension systems—the state pension, state second pension and single-tier state pension

The following Private Client guidance note Produced in partnership with John Hayward, Pensions author provides comprehensive and up to date legal information covering:

  • An introduction to UK pension systems—the state pension, state second pension and single-tier state pension
  • Brexit impact
  • State pensions
  • State second pension

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note.

EU rules facilitate the co-ordination of social security entitlements for individuals moving within the EU and EEA, including the uprating of the UK state pension. While the UK state pension is payable overseas, it is only uprated if the pensioner is in an EEA country or one with which the UK has a reciprocal agreement requiring uprating.

UK nationals living in an EEA state or Switzerland by 31 December 2020 are covered by the Withdrawal Agreement and will get their UK state pension uprated every year for as long as they continue to live there. This will happen even for individuals who start claiming their pension on or after 1 January 2021, as long as they meet certain qualifying conditions.

The position is less clear for those who move to live in an EEA state or Switzerland on or after 1 January 2021 and will not be covered by the Withdrawal Agreement. The rules on entitlement to UK benefits for such individuals will depend on the outcome of negotiations with the EU