For the many individuals approaching UK state retirement age, there is an option to defer payments of this pension. For those people who require the UK state pension to provide a major source of their income in retirement, a deferral of these benefits is not really an option. However, Global QROPS Ltd has retiring clients migrating, where this becomes an important advice issue.
Pending the result of the appeal to the European Court of Human Rights (EHCR), there are many Global QROPS Ltd clients migrating to popular destinations such as Australia, Canada, New Zealand and South Africa, that will not receive indexation on their UK State pension when it comes into payment to them. Over the years, people choosing countries such as Australia to migrate too, have been at an unfair disadvantage to those migrating to the USA or countries in the EEA (European Economic Area), for example, where indexation on the UK State Pension does apply.
However, regardless of where you are migrating, an increase still applies to your State Pension whilst deferred. The rate of increase on your pension is 1% for every 5 weeks deferred (broadly 10.4% per annum). For some migrants this can be an important option, especially if they are not going to receive any indexation once the State Pension finally comes into payment.
As an alternative to a pension, an individual can receive the deferred amount as a lump sum.
Retiring migrants should speak to Global QROPS Ltd before claiming their UK State Pension.
