Maybe it is time to review an institution which is 99 years old.
The fact that the rule has been in place since 1955, doesn't make it relevant in 2024. Back then very few people ventured abroad in old age. You also had fewer young people leaving their home country.
Basically, the rule penalizes anyone who wants to be close to family living abroad when they are old.
What is the logical rationale to freeze pensions at the level of a person leaving? The older person uses less of other government services (especially medical care) in the UK. It would actually be cheaper for the government to have every retiree leave
Hiding behind a missing reciprocal agreement with Thailand is ridiculous. How many typical Thais move to the UK in retirement? Even if Thailand were to pay them benefits in the UK, how far would that THB pension get them in UK?
Some posted that people should have known and made a personal decision. Let's be honest, how many people were aware of it before reading the post. How many would even start to think that their retirement would not increase if they live in Country A?
Maybe the lady could have maintained a PO Box or physical address in the UK to avoid this issue. But 20 years ago, online banking to get money transferred was much more difficult than today.
I will definitely check the USA rules for their benefits now as I am planning to leave in retirement.
Last but not least, governments do change longstanding rules when there is sufficient pressure. Germany did not allow dual-citizenship (except in rare cases) but is now changing the law to allow Germans living abroad to accept citizenship of that country as well. Still waiting for Austria to do so