State pension frozen for thousands due to where they live

Payments could increase by 10.1 percent next year if the triple lock is reinstated, with the new full state pension rising to more than £200 a week for the first time. But tens of thousands of Britons miss out on the yearly increase if they live in certain countries.For a person’s pension to increase each year, they must live in:The UKThe European Economic Area (EEA)SwitzerlandGibraltarCountries with a social security agreement with the UK (but not in Canada or New Zealand).READ MORE: Half a million pensioners to miss out on state pension rise due to where they live Thousands of Britons have a frozen state pension because of where they live (Image: GETTY)Around 520,000 British pensioners miss out on the increase as they live outside these regions, according to campaign group End Frozen Pensions.If affected pensioners move back to the UK, their payments will then increase to the current rate.Those who live in an EEA country or Switzerland should see their payments increase each year.The countries inside the EEA include:AustriaBelgiumBulgariaCroatiaCyprusCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIcelandIrelandItalyLatviaLiechtensteinLithuaniaLuxembourgMaltaNetherlandsNorwayPolandPortugalRomaniaSlovakiaSloveniaSpainSweden.DON’T MISSRishi Sunak ‘will do what’s right’ pensioners told as they await verdict on 10.1% rise [TRIPLE LOCK]Halifax customer warns of ‘classic’ cold call scam where fraudsters can steal your details [FRAUD]Pensioner ‘amazed’ to get £18,000 cheque after Martin Lewis’ state pension warning [PENSIONS TIP] Retirement ages vary across Europe (Image: EXPRESS)Analysts at wealth management firm Quilter said if the state pension increases by 10.1 percent, Government expenditure to cover the bill will rise to around £9.5billion annually.David Denton, technical consultant at Quilter Cheviot, said: ‘Pensioners will be hoping that the government honours its previous commitment to an inflation-based uplift next year as it will rely on the high figure released this morning.’Not only would this result in a considerable pay rise for pensioners this year, but if the triple lock is then scrapped in subsequent years, they will at least have received this larger, potentially one-off, uprating.’Around 12.5 million people who receive the state pension could face a real-terms cut in earnings if their payments do not rise, while prices for everyday essentials continue to soar.