UK expats lose pension freeze appeal

[fullyautomatix]

More than half a million UK pensioners living overseas will continue to have their pensions frozen after a European court decision.

Pensioners who moved to countries such as Australia and Canada only receive the level of pension paid at retirement - which might be only £6 per week.

The European Court of Human Rights rejected an appeal from a group of pensioners by an 11 to 6 majority.

The group wanted to receive increases in line with inflation.

The decision has saved the government at least £500m a year.

The expatriate pensioners say they have been fighting "tooth and nail" against the UK government in an eight-year court battle.

Pensioners who have moved abroad want their UK state pensions to rise in line with inflation each year.

Inflation-proofing only applies to UK pensioners who live in the European Economic Area or in 15 other countries, but not in some Commonwealth states.

http://news.bbc.co.uk/1/hi/business/8568970.stm

Anybody here affected ?

[Mich the Tester]

Well, I will be, but happily I’ve invested in the Dutch healthcare pension scheme; just have to stick together with Lady Tester to get the best pension in the world.

I can understand that I won’t get much because I haven’t paid much in to the British system, but if people have paid into the system for a set number of years, they should have the same rights to a pension as anyone else who’s paid in. If that’s not the case, HMG are committing theft. Not that that would be news.

[shaunbhoy]

Why should it matter where you live when you retire? Surely this is simply the state paying you back all the contributions you made during your working life?

[Mich the Tester]

Why should it matter where you live when you retire? Surely this is simply the state stealing your money and giving it to chavs and MPs?

ftfy

[fullyautomatix]

When the money runs out the government will try and find ways of not keeping its promise. I believe the gold plated pensions for civil servants cost the tax payer about £25 Billion last year. This is totally unfunded. All the governments in place are ignoring this and are trying to fund this by either borrowing the cash or just using the cash that is earmarked for public services.

[Mich the Tester]

I should add that New Labour disenfranchised all expats who’d been out of the UK for more than 15 years (previously 20 years), and wanted to bring this down to 5 years. Of course it perhaps isn’t entirely coincidental that many expats are tories. So now Gordon has decided to pick on British citizens who often don’t even have the means to fight back at the ballot box. Not only is he a liar, a thief, a colluder in torture and a snot goblin, he’s also a bully.

[xoggoth]

Not necessarily unreasonable I reckon. Pensions paid to British residents are mostly spent in the UK and benefit our economy. When paid to expats there is an impact on GDP and balance of trade.

For the same reason a job done by a migrant worker is often worth less to the UK than a similar job done by a Brit.

PS Although whether the pension reduction is proportionate to the impact on us I do not know.

[Mich the Tester]

Not unreasonable I reckon. Pensions paid to British residents are mostly spent in the UK and benefit our economy. When paid to expats there is an impact on GDP and balance of trade.

For the same reason a job done by a migrant worker is often worth less to the UK than a similar job done by a Brit.

Wrong. People pay compulsory NI contributions into the scheme and are promised a pension at the end. If you want to deny people benefits based on where they live then NI contributions should not be compulsory for anyone working in the UK.

[NotAllThere]

Not necessarily unreasonable I reckon. Pensions paid to British residents are mostly spent in the UK and benefit our economy. When paid to expats there is an impact on GDP and balance of trade.

For the same reason a job done by a migrant worker is often worth less to the UK than a similar job done by a Brit.

OTOH, health care costs are being picked up by the host country.

The same proposal was put before the Swiss populace who rejected it resoundly. Apparently, they all want to retire to Thailand. Well, the men anyway.

[TheFaQQer]

Well, I will be, but happily I’ve invested in the Dutch healthcare pension scheme; just have to stick together with Lady Tester to get the best pension in the world.

I can understand that I won’t get much because I haven’t paid much in to the British system, but if people have paid into the system for a set number of years, they should have the same rights to a pension as anyone else who’s paid in. If that’s not the case, HMG are committing theft. Not that that would be news.

Where are you heading to on retirement, Mich?

If you are still within the EU, the UK state pension would rise with inflation, I believe.