UK Pension does it rise with inflation when retired in Oz?
Mar 26th 2010, 11:22 pm
#1
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UK Pension does it rise with inflation when retired in Oz?
My Mother is looking into using the contributory visa to join us in Australia.
However she is worried about her pension basically freezing at the same rate when she comes out. Is this still the case? I know if you retire to Europe then you get all the rises and inflation rate changes, but does it stay the same here for good?
She said there was a case where a man was effectively challenging this act - does anyone know the result of this?
She is worrying about her $90 or so per week staying at $90 forever, obviously in 5 years it won't be worth much!
However she is worried about her pension basically freezing at the same rate when she comes out. Is this still the case? I know if you retire to Europe then you get all the rises and inflation rate changes, but does it stay the same here for good?
She said there was a case where a man was effectively challenging this act - does anyone know the result of this?
She is worrying about her $90 or so per week staying at $90 forever, obviously in 5 years it won't be worth much!
Last edited by tinaj; Mar 26th 2010 at 11:26 pm.
Mar 27th 2010, 12:02 am
#2
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Re: UK Pension does it rise with inflation when retired in Oz?
She is right - her state pension will be frozen when she leaves the UK. See this thread
Mar 27th 2010, 12:10 am
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Re: UK Pension does it rise with inflation when retired in Oz?
Sorry to be the bearer of bad news, but yes the UK sate pension is frozen from the day you leave UK, if you live in several countries, including Australia. There was an (almost?) final case for parity rejected last week in the Hague. However, if you return to UK for a visit, your pension is increased to what it should have been, had you never left. You have to inform the relevant dept. then as soon as you leave again, it reverts back to it's original frozen amount!!! Last year the rules were changed yet again, and you only received the updated amount when you returned to Australia from your holiday, previously it was paid directly to your account while you were in UK.
Mar 27th 2010, 1:11 am
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Re: UK Pension does it rise with inflation when retired in Oz?
Non-state pensions are generally not affected.
Mar 29th 2010, 9:15 pm
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Mar 30th 2010, 1:10 am
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Re: UK Pension does it rise with inflation when retired in Oz?
The social security agreement was terminated back in 2001, so you cannot claim UK contributions as a basis for getting the Australian age pension.
HOWEVER, after 10 years residence (as a PR or citizen), you may be eligible for the Australian age pension. Check the Centrelink website.
HOWEVER (and this is something those who rant about UK pension policy conveniently forget) the Australian age pension is subject to a means test.
Mar 31st 2010, 5:21 am
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Re: UK Pension does it rise with inflation when retired in Oz?
Where on earth do you get the figure of A$100k from (it's wrong, incidentally, at least for a single person).
The social security agreement was terminated back in 2001, so you cannot claim UK contributions as a basis for getting the Australian age pension.
HOWEVER, after 10 years residence (as a PR or citizen), you may be eligible for the Australian age pension. Check the Centrelink website.
HOWEVER (and this is something those who rant about UK pension policy conveniently forget) the Australian age pension is subject to a means test.
The social security agreement was terminated back in 2001, so you cannot claim UK contributions as a basis for getting the Australian age pension.
HOWEVER, after 10 years residence (as a PR or citizen), you may be eligible for the Australian age pension. Check the Centrelink website.
HOWEVER (and this is something those who rant about UK pension policy conveniently forget) the Australian age pension is subject to a means test.
You have dangled the bait and I'll be brave enough to bite
What does the fact that the Australian Age Pension being means-tested have to do with those of us who "rant" over the inequality of the UK government's State Pension policy?
If you are suggesting that we should be "grateful" that the UK one is not means-tested and conveniently forgetting that the Australian one is, you could be greatly mistaken. Despite paying in maximum NI contributions for the maximum number of years we are denied the uprating simply because of residence. Sorry, but this is iniquitous - whichever way you cut it.
Regards
Jim
