Because you miss the "paying in" bit. Whether the scheme is currently funded or pre-funded is irrelevant.

Although I am affected myself, my other incomes make the lack of indexing an irritation rather than life threatening. But there is a large number of expat pensioners who receive literally a pittance from the compulsory - don't forget that bit - scheme they've paid into for years.

And, if they can afford the occasional newspaper, they read of convicted, illegal immigrants picking up unheard-of sums from the same government. It's a squalid tale.

I haven't missed the "paying in" bit - I said in the post you responded to "as far as the state pension in the UK goes, people paying "into the system" now are paying for pensions now." In other words, current tax payers are paying for current pensioners and future tax payers will pay for future pensioners - it is not a case of current taxpayers paying for future pensioners (whether or not that future pensioner is yourself paying taxes today).

The UK state pension is not a personal pension fund, it is part of the benefits system just like JSA or Income Support.
It isn't a "scheme" that people pay into when we're talking about the UK state pension - it is simply tax, part of which funds current pensioners.

I am fully supportive of a state pension system, however it should really be for resident pensioners and the starting age really needs to be higher (with health of person considered regarding ability to work) as when the pension started most people were not expected to live for more than a few years after they retired - now quite a few people live for 20+ years after they choose to retire.

Why? You might feel differently if and when you are a pensioner. Where did it ever say that if you decide in your old age to move out of UK that you would be discriminated against if you only move to certain countries.
Eg pension frozen in Canada, move a few miles away to America not frozen!! It would almost make more sense to freeze it in every country rather than a select few. Live in most European countries and again not frozen.
When you have paid in all your working life, why do you have to stay in UK to be eligible. You might feel differently if that applied to you.
All our income comes from UK and we have never stopped paying UK tax.
We retired to OZ 10 years ago, we knew and understood the conditions, but it still rankles, as we are in Uk now for several weeks and our pension is updated to what it would be had we never left, then reverts back when we leave, what a nonsense. We get 250 pds 4 weekly between us more at the moment, which is quite an increase to be without.
We are not entitled to anything in UK which is fine, but if we were living here we would cost the state for all sorts of services, so we are doing the state a favor really by opting to live overseas.
We are self funded retirees in OZ just in case you think we are taking from a country that we haven't contributed anything to.

Because when it comes to the state pension, you have not been "paying into" a pension scheme - you have been paying taxes, part of which fund current pensioners. That is how the system is set up, whether it's right or wrong doesn't matter with this - the UK state pension is set up as part of the benefits system, and therefore should really be for residents only.

Not sure which bit you don't understand mate - paying into the UK PENSION scheme is like a Ponzi scheme - what currently goes in pays for todays pensiomers with the view whatever is left over pays forwards towards your own pension.

Also your logic of only paying people who live in the country is all well and good in a non transient world where people don't move around but people do move around and often this means paying into a scheme that eventually pays for their retirement and moving countries before this materialises. The problem with what's happening currently is the system is discriminotary and only indexes pensions for people who move to certain countries and not to Aus which is part of the same commonwealth.

There should be a recipricol agreement.

Still paying uk tax, so must be funding ourselves, so should be entitled to our pension

It's even more stupid than that: if you spend a holiday in the USA you will not get the indexed pension for the stay, despite the fact that the US pensioner *is* indexed. Spend the time in say Greece and it is indexed.

As they say - go figure.

Pure sophistry. We all know how the system is set up, so making an issue over which words we use isn't helpful. The fact is, we all paid for out fathers' pension entitlement and the system/scheme/whatever carries this "rolling" funding from generation to generation.

Whether it's sustainable in the long run is a completely different question that has to be addressed. However, the lack of indexing for a proportion of pensioners is indefensible.

I wonder if those who live in Scotland would feel aggrieved if Scotland leaves the UK and *their* pensions are treated the same way?

Just so I understand this mate if contributory parents went back to UK for a holiday they'd be able to draw the full whack for the time they were there yet it reverts back to the previous rate when they left?

Yes we do it every time, and we go back most years
Google the uk tax office to find the site, we advise them the dates we are arriving and leaving uk and enjoy spending the extra! but as mentioned before it referts back when you leave to go back to OZ.
If we find the tel. No. Will pm it to you, but living out a suitcase at the moment, so not sure where things are.
Just off to spend the extra 250 pds

That's bloody amazing cheers mate. The parents have paid their dues all their lives, father served in the military i reckon they deserve a break they've lost $1000 a month with the poor exchange rates and living like paupers, it stinks


Cheers mate appreciated

[QUOTE=carolinephillips;10679408]It is blatant discrimination and I'm surprised no one has taken the UK government to court. QUOTE]

Agree totally with this

[quote=spouse of scouse;10683116] There have been several attempts, most recently the Carson case: a South Africa resident became a test case, backed by several expats' pensioners associations. IIRC that one failed by a 2:1 judges' vote - the dissenting voice was quite vehement about the unfairness of the whole thing.

[QUOTE=spouse of scouse;10683116] They have, and the EU.

It's not just the basic pension. I paid into SERPS which was supposed to be the state's equivalent of a private pension, with the same benefits. It was compulsory, over and above NI. That gets frozen as well.

Does anyone know if a retiree living in Oz and claiming an Oz pension, can move abroad and still claim that Oz pension?