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Potential UK State Pension issues for UK citizens working in EU post Brexit

30 August 2017

Aegon has highlighted how important successful Brexit negotiations could be for those who have worked elsewhere in the EU for long periods, and so don’t have the 10 years of UK National Insurance contributions which would give them pro-rata entitlement to a UK pension.

The assurer cites new research briefing in the House of Commons library on this subject. Steven Cameron, Pensions Director at Aegon explains the issues for those who have worked in the EU, who intend returning to the UK to retire and are expecting to receive their UK pension.

“To qualify for the new UK state pension, you need a minimum of 10 years of UK National Insurance contributions. While the UK is a member of the EU, individuals who don’t meet this ‘minimum qualifying period’ can ask for periods where they were working elsewhere in the EU to be taken into account. Under Brexit this needs to be reviewed and for those affected, successfully agreeing to continue this ‘aggregation’ approach could make a vital difference between receiving no UK state pension or receiving a pro rata amount.

“For example, someone with 7 years of UK NI contributions is not eligible for any new UK State Pension. However, under current EU aggregation rules, if they also have 3 or more years of qualifying employment in another EU country, this is added to the 7 years of UK employment, meaning they now pass the minimum qualifying period of 10 years.

“However, their pro rata entitlement to UK state pension will be based on their 7 years of UK contributions, not on the higher total number. They may be able to claim some state pension from other EU countries they’ve worked in.”

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