South African visa holders may benefit from pension case

September 07 2009 by Rebekah Nahai

UK pensioners in South Africa to benefit

UK pensioners in South Africa to benefit

Expats who move to South Africa, Australia and Canada are set to benefit from a court case being launched to increase pension payments for those choosing to retire abroad.

In recent years pension payments to expats living in these countries have been frozen, affecting some 500,000 people who have paid National Insurance contributions in the UK.

A group of pensioners, including some who live in South Africa, have just completed the final stage of their appeal case at the European Court of Human Rights. A verdict is due in March.

The pensioner group were claiming that the location in which they live should not affect the amount of money they are paid through the UK pension system. The pensioners say they are happy to receive varying amounts of pension payments depending on the amount they paid in NI contributions, but they claim many would see the money they receive double if they are no longer penalised for retiring abroad.

Andrew Harrop, head of public policy for charity Age Concern, said: "We hope the case today will see an end to this inequality and ensure the government gives every pensioner their fair share, no matter where they decide to retire."

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