A British retiree in Thailand whose UK state pension has been frozen has said inflation is eroding away the very little money he gets from his home country.
John Stenton, 71, worked in architecture in Edinburgh from 1971 to 1985, before emigrating to Australia. His job took him all over the world, including to Thailand, where he retired at 67 in 2020 due to a lack of work.
Throughout his lifetime, he has worked all over Europe, Asia, Oceania, the UAE, Myanmar, India, China, Singapore and Hong Kong.
But it was Thailand that stole his heart. He moved there in 2005, living with his wife and 17-year-old daughter on a farm in Chonnabot in the north-east of the country.
Money is tight though. Speaking to The i Paper, he said: “The only document I have from the Department for Work and Pensions in the UK states that my UK state pension is £159.63 per week. So, it’s frozen but it doesn’t say as such.”
Mr Stenton is referring to the frozen UK state pension for people living overseas.
He is one of about half a million British citizens living abroad who do not benefit from the state pension increases those living in the UK receive via the triple lock, which means payments rise each year by wage growth, inflation or 2.5 per cent – whichever is highest.
Campaigners have fought for decades for a change in the policy, which they brand as unfair and unjust.
Mr Stenton said he had not been aware of the phenomenon when he moved to Thailand. He believes the extra money he is missing out on in state pension – which increased by 4.1 per cent in April for British citizens living in the UK – would make a considerable difference to his life.
He said: “The money I get each week from the UK equates to around 28,000 baht per months, but exchange rates mean this fluctuates.
“I paid national insurance from 1971 to 1985 and paid voluntary national insurance contributions from 2007 to 2019 – a total of 26 years.
“This doesn’t take into account the 20 years I paid tax in Australia, for which I am not entitled to an aged pension as Australia is one of the few countries in the world that doesn’t have a contributory pension scheme.
“The pension I receive really only covers the basics. We have inflation in Thailand too – no different than anywhere else. This obviously erodes the actual worth of the meagre UK pension I get.”
Mr Stenton said this means there is no money for luxuries, for anyone in the family.
Only expats who live in countries with a reciprocal agreement with the UK get pension increases.
Those living in the US, EU, European Economic Area (the RU plus Iceland, Liechtenstein and Norway, and Switzerland see payments increased each year. But those in other countries, such as Thailand, do not.
Recent analysis shows the these “frozen” pensioners have missed out on more than £25,000 over 15 years.
According to figures from interactive investor, an affected pensioner would have lost out on £13,162 since 2015, compared with what they would have gained had they had stayed in the UK.
A retiree receiving the full state pension who moved abroad in 2010 would have sacrificed £25,832 in payments over 15 years.
According to the research, if a British pensioner considered retiring abroad today, they would risk missing out on around £70,000 from their state pension over the next 20 years if their entitlements are frozen when they move.
This assumes full state pension payments are uprated by 3.7 per cent in 2025 and by 2.5 per cent per year thereafter.
The Department for Work and Pensions has been contacted for comment.
