Expat pensions could be frozen post-Brexit
Dec 8th 2018, 4:20 pm
#31
Banned
Joined: Jul 2018
Location: Costa Blanca
Posts: 213
Re: Expat pensions could be frozen post-Brexit
I do not see how reciprocal agreements have anything to do with the UK government paying the same rate to state pensioners who have paid in exactly the same whether they are in the UK or elsewhere. It’s a con and a scam.
Dec 8th 2018, 5:47 pm
#32
Account Closed
Joined: Mar 2017
Posts: 0
Re: Expat pensions could be frozen post-Brexit
Yet another thread wherein the pathetic sentiments of British envy apply.
Dec 8th 2018, 6:04 pm
#33
Lost in BE Cyberspace
Joined: Feb 2008
Posts: 5,624
Re: Expat pensions could be frozen post-Brexit
John when it first came in it was around £155 however with inflation increases it is now just over £164 if you get full amount many don't.
https://www.gov.uk/new-state-pension/what-youll-get
https://www.gov.uk/new-state-pension/what-youll-get
Dec 8th 2018, 6:14 pm
#36
BE Enthusiast
Joined: Jan 2011
Location: Torrevieja Costa Blanca South
Posts: 390
Re: Expat pensions could be frozen post-Brexit
per ejemplo, Government pensions
)
Dec 9th 2018, 2:34 am
#38
BE Forum Addict
Joined: Nov 2012
Posts: 1,643
Re: Expat pensions could be frozen post-Brexit
Many have contributed well in excess of 35 years NI contributions. Pay income tax on gross UK pension incomes, yet have their state pension frozen..... a disgrace
Dec 9th 2018, 7:50 am
#39
Polished expat
Joined: Jul 2014
Location: Arcos de Valdevez "Onde Portugal se fez"
Posts: 16,829
Re: Expat pensions could be frozen post-Brexit
Unfortunately that is not how the state pension was and is set up in law. Unlike a private pension which builds a fund which is drawn down after retirement (and is supported by investment and interest). The NI contribution (and other taxes) pay for current pensions and benefits. As you say you were promised a certain pension when you retired and I am sure that's about what to got. The problem is that it is no longer indexed as of right but only in certain territories which have a bilateral agreement with the UK to continue the subsidy. If you leave the UK you are no longer contributing economically to the UK but to your new host country. Spain and others seems to recognise this and that their citizens will also benefit in the UK so a reciprocal bilateral deal is very likely. If you want to blame someone then if you are not getting an indexed pension then you should blame your host country and not the UK.
Why has Australia terminated the agreement?
Australia has terminated the Agreement because the UK Government refuses to change its policy of not indexing pensions in Australia, even though it does index pensions paid in some countries with which it has Agreements.
The Australian Government has made considerable efforts over the last decade to get the UK to re-negotiate the Agreement to address the indexation problem but the UK has refused all our efforts.
Australia has terminated the Agreement because the UK Government refuses to change its policy of not indexing pensions in Australia, even though it does index pensions paid in some countries with which it has Agreements.
The Australian Government has made considerable efforts over the last decade to get the UK to re-negotiate the Agreement to address the indexation problem but the UK has refused all our efforts.
Termination of the Social Security Agreement with the UK - Information for Prospective Migrants
- which shows that there was a bilateral SS agreement in place when the UK decided to cease indexing pensions for its citizens in Australia.
The other sentence I highlighted is compromised, in my opinion, by the asymmetry between the numbers of citizens resident on either side in receipt of pensions from their home country (and I suspect that as time goes by that asymmetry might well get worse) ie the difficult country insofar as recognising the benefit of a bilateral deal goes probably wouldn't be Spain
(and, of course, Spain is just one of 27).
Last edited by Red Eric; Dec 9th 2018 at 8:00 am.
Dec 9th 2018, 7:59 am
#40
Lost in BE Cyberspace
Joined: Feb 2008
Posts: 5,624
Re: Expat pensions could be frozen post-Brexit
That isn't the point I referred to in my quote? It was the term benefit being used for state pension !
As for ageing and state pension yes many people do live longer not all. The problem I see is that successive governments have ignored this for years but leaving it untill the pot was running dry. They dealt with this by increasing retirement age quite quickly. Had they started way back when they should have then the increases could have been far less noticeable to the pensioners and achieve same result .
Last edited by Rosemary; Dec 11th 2018 at 1:56 pm. Reason: corrected quote
Dec 9th 2018, 8:02 am
#41
Lost in BE Cyberspace
Joined: Feb 2008
Posts: 5,624
Re: Expat pensions could be frozen post-Brexit
We were but then mention was made that ex pat pensioners don't pay income tax which somehow made it right they should lose the right to annual inflation increases in state pension. A large number are in fact tax payers for various reasons including having been employees of the state who make the rules.
Dec 9th 2018, 8:20 am
#42
Banned
Joined: Jul 2018
Location: Costa Blanca
Posts: 213
Re: Expat pensions could be frozen post-Brexit
We were but then mention was made that ex pat pensioners don't pay income tax which somehow made it right they should lose the right to annual inflation increases in state pension. A large number are in fact tax payers for various reasons including having been employees of the state who make the rules.
I paid in the same amount as everyone else
Dec 9th 2018, 9:00 am
#43
Account Closed
Joined: Mar 2017
Posts: 0
Re: Expat pensions could be frozen post-Brexit
Dec 9th 2018, 10:04 am
#45
Lost in BE Cyberspace
Joined: Jun 2005
Location: Puente Esuri
Posts: 6,904