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A state pension change means that Brits could be missing out on thousands of pounds. Pensioners living abroad are believed to have missed out on £3,237, according to analysis from Unbiased. A petition to rectify the lost money for expat pensioners has been established.

David Stuart Cooper, who established the petition to ensure state pension increases apply to pensioners living abroad, wrote: "We want the Government to ensure that pensioners get an annual increase if they live abroad in certain countries. Currently some people do not receive increases even if they have worked 50 years in the UK prior to retiring abroad." The petition shows many are feeling "let down" by current state pension policy, according to Tim Grimsditch.

State Pension increases are only applicable to those living in the European Economic Area, Gibraltar, Switzerland, or countries that have a social security agreement with the UK.

Those living outside of these countries will not receive yearly increases, though their pension will increase to the current rate should they return to live in the UK.

Grimsditch, Managing Director at Unbiased, said: "Over the last three years, the New State Pension has increased by £37.45 per week - that's roughly £162 extra a month. However, British expats living in 'frozen' countries - like Australia, Canada, or South Africa - won't have benefitted from this increase.

"Our analysis shows that since 2023, these retirees have already missed out on over £3,000 because their pensions are locked in at the rate they were when they moved. With over 7,000 people now calling on the government for change, it's clear that they feel let down."

Grimsditch continued: "Most of these expats would have worked in the UK their whole lives, moved abroad to enjoy their retirement, only to see their finances capped in the past. And as inflation rises, keeping up with the cost of living will only become more difficult."

Analysis from Unbiased and Grimsditch is based on the annual increases to the full New State Pension from 2023 through to 2026. Over the three year period, analysts found that pensioners living outside of UK-approved areas had lost out on £3,237.

Grimsditch added:"This is a reminder that you can't always rely on the state pension when you retire, especially if you're thinking of moving abroad. Planning now is usually the best way to ensure you can live comfortably, no matter where you end up.

"If you're not sure how to plan for your retirement, seeking advice from a professional financial adviser can help you get one in place with confidence."