UK expats lose pension freeze appeal

[Mich the Tester]

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.

No idea. I don’t see why I should have to plan that now. I pay into the Dutch schemes and my private scheme and I expect to be paid out from them. Actually, every time I see these changes to national pension or benefits schemes it makes me glad I’m a contractor and effectively outside these schemes; they’re an even bigger rip off than the banks.

[Gonzo]

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 ?

I have moved to a Commonwealth country (New Zealand) and so I have looked into this but I won't be affected.

Entitlement to the New Zealand state pension is based on residence (the "Citizens Pension" idea that has been floated by some in the UK) and provided that I have lived here for ten years then I will get it.

I will be obliged to claim anything I am due from the UK government and this will reduce the amount paid by the New Zealand government accordingly. Some British expats complain about this arrangement but I think it is fair enough because the total state pension works out the same as any other NZ resident. Private pension arrangements are excluded from this calculation.


What is more worrying is the serious crunch that you will have to deal with in the UK before very much longer. The story highlights the sense of entitlement that people that have paid NI contributions all their life feel (understandably) but the government has been using that money to finance the pensions of the people that have already retired.

With people living ever longer this is unsustainable but no politician wants to deal with it because they'll get no thanks for it.

Over the past few years the New Zealand government has been squirrelling away surplus funds to provide for a projected increase in retirees in the future. The current government has stopped contributions because of reduced tax income during the recession they don't believe it is wise to borrow for this purpose. They are right but I am not convinced that they would restart contributions when the economy picks up.

[BoredBloke]

But this highlights how this government works. Pick a small group that you think nobody will give a stuff about and squeeze them. This has to be a new low though. To prevent somebody getting the increased state pension that they paid for all their working life is bad - especially when we have so many scroungers with no interest in working milking the system for every penny they can get - eg Rochdale Swap Donkey!

[tay]

I have moved to a Commonwealth country (New Zealand) and so I have looked into this but I won't be affected.

Entitlement to the New Zealand state pension is based on residence (the "Citizens Pension" idea that has been floated by some in the UK) and provided that I have lived here for ten years then I will get it.

I will be obliged to claim anything I am due from the UK government and this will reduce the amount paid by the New Zealand government accordingly. Some British expats complain about this arrangement but I think it is fair enough because the total state pension works out the same as any other NZ resident. Private pension arrangements are excluded from this calculation.


What is more worrying is the serious crunch that you will have to deal with in the UK before very much longer. The story highlights the sense of entitlement that people that have paid NI contributions all their life feel (understandably) but the government has been using that money to finance the pensions of the people that have already retired.

With people living ever longer this is unsustainable but no politician wants to deal with it because they'll get no thanks for it.

Over the past few years the New Zealand government has been squirrelling away surplus funds to provide for a projected increase in retirees in the future. The current government has stopped contributions because of reduced tax income during the recession they don't believe it is wise to borrow for this purpose. They are right but I am not convinced that they would restart contributions when the economy picks up.

Yeah i saw some UK expats complaining abut this on the news just the other week. But I am with you, there is no way they should get a full UK govt and a full NZ govt pension.

[EternalOptimist]

we live in uncertain times