UK Australia State Old Age Pensions

Published / Last Updated on 07/03/2014

UK Australia State Old Age Pensions

Much has been written and featured in video online about the position regarding State Pensions and social security between the UK and Australia with many British expats fighting to secure the same pension increase rights as pensioners in the UK.  The issue has even been taken to the European Court of Human Rights and failed.

International Social Security Agreements - What does this mean?

The UK has social security agreements with many nations.  In most cases, it means that Social Security payment credits are given for times when you are in another country.  For example, you are a British National that worked for a period of time in France and Germany and paid into their Social Security systems.  This means that when you come to claim your state pension in the UK as a UK resident, you will also be given credit for the time you paid into the other countries systems. 

Likewise, if you live in the EU and claim a state pension there, you will be given credit towards that country's state pension based upon your social security credits in the UK or alternatively, you may claim separate state pensions in each other.

List of Countries with Social Security Agreements with the UK for State Pensions:

The European Union plus:

  • Australia – but only before 01/03/2001
  • Barbados
  • Bermuda
  • Canada
  • Gibraltar - The EU rules on social security largely cover Gibraltar – with the exception of Child Care and Healthcare.
  • Isle of Man - The EU rules on social security largely apply also to the Isle of Man but there are some differences
  • Israel
  • Jamaica
  • Jersey and Guernsey (Channel Islands)
  • Mauritius
  • New Zealand
  • Philippines
  • Republics of the former Yugoslavia
  • Switzerland - The EU rules on social security largely cover Switzerland.
  • Turkey
  • USA





Australia UK Social Security Agreement - Torn Up by Australia

The UK has more migrants to Australia than Australia to UK.  This is where the problem with the UK Australia Security Agreement fell apart and Australia cancelled the agreement.   Too many people were leaving the UK and then entitled to old age pension rights in Australia.  The UK Australia Social Security Agreement ended on 28 February 2001.

What does that mean?  It means there is no agreement between UK and Australia to honour or pay state pensions to residents of either country or credit for social security paid in the other country.

State Pension in Australia

You must be resident in Australia to claim your state pension.  If you do not live there now but paid into the Social Security system you will not receive an old age pension.

British or Australia National but UK resident with Australia social security credits.

As you are you UK resident you are not eligible to claim the old age pension in Australia and no credits are given after 2001.  Australia will not pay you an old age pension.  However, the UK Pensions Agency, by special concession has allowed that UK residents, despite no agreement with Australia now, will still offer you credits for time spent and paid into the Australian system.    You will need to contact the International Pensions Centre at the Department for Work and Pensions to discuss your position.

UK State Pension for Residents in Australia

Despite Australia not paying an old age pension to residents of the UK, the UK will pay Australia residents, with enough UK social security credits, a UK state pension in Australia.  The UK is therefore trying to honour pension commitments, whilst this may not be the case in Australia.  The difference is unlike a UK or Social Security Agreement Country, there is no inflation protection once you UK state pension starts being paid, it is frozen.

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