The UK government has said the way state pension payments are calculated could change next year.
The shake-up is due to the UK leaving the European Union and would impact certain claimants wishing to move abroad - as The Daily Record reports.
Official guidance states the change in state pension calculation will relate to people who have previously lived in Australia, before 2001, Canada or New Zealand.
READ MORE: Universal Credit and ESA rule changes issued by DWP
Claimants will not be able to count periods living in these countries as part of their state pension if they move to the EU, EEEA or Switzerland from January 1 2022.
The DWP said: "The change will affect you whether or not you have claimed your UK State Pension yet.
“Your UK State Pension will be calculated, or recalculated if already in payment, using only your UK National Insurance record.”
The DWP added this change will need to be approved by UK Parliament.
Who is affected by the change?
The DWP state the following will only affect the way your state pension is calculated if both of the following apply:
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You are a UK national, EU or EEA citizen or Swiss national
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You move to live in the EU, EEA or Switzerland on or after January 1, 2022, including if you move to live in another EU, EEA country or Switzerland on or after January 1, 2022
Who is not affected by the change?
DWP states that you will not be affected by the change if you either:
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live in the UK - whatever your nationality
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are a UK national, EU or EEA citizen or Swiss national who was living it the EU, EEA or Switzerland by December 31, 2021
The guidance clarifies that as long as you continue to live in the same country, you will still be able to count time living in Australia (before March 1, 2001), Canada or New Zealand to calculate your UK State Pension.
If you live in an EU or EEA country or Switzerland, your UK State Pension will continue to be increased each year in line with the rate paid in the UK.
Current State Pension payment rates
State Pension payments increased by 2.5 per cent in April.
This means people over the age of 66 on the full, new State Pension are now receiving £179.60 per week - an increase of £4.40 on the 2020/21 rate of £175.20. This amounts to an extra £17.60 a month and £228.80 for the 2021/22 financial year.
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