The way state pension payments are calculated for some people will change from January.
The update will impact certain claimants wishing to move abroad and is due to the UK leaving the European Union.
The shake-up will relate to people who have previously lived in Australia, before 2001, Canada or New Zealand - as The Daily Record reports.
READ MORE: All the Universal Credit and other benefit changes coming in 2022
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 Department for Work and Pensions ( 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.”
However, the DWP added that this change will need to be approved by the UK Parliament.
Who is affected by the change?
The DWP state the change will only impact 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.
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