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UK Pension will increase yearly confirmed.

UK Pension will increase yearly confirmed.

Old May 13th 2021, 10:17 am
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Default UK Pension will increase yearly confirmed.

UK State Pension

You can carry on receiving your UK State Pension if you move to live in the EU, EEA or Switzerland and you can still claim your UK State Pension from these countries.

Your UK State Pension will be increased each year in the EU in line with the rate paid in the UK.

You can also count relevant social security contributions made in EU countries to meet the qualifying conditions for a UK State Pension.
SOURCE:
https://www.gov.uk/guidance/benefits...or-switzerland

This guidance is for UK nationals, however these rules on the State Pension apply to everyone regardless of your nationality and regardless of when you moved.
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Old May 13th 2021, 1:39 pm
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Default Re: UK Pension will increase yearly confirmed.

This was news in January.

https://www.yourmoney.com/retirement...-post-brexit/#
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Old May 13th 2021, 1:58 pm
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Default Re: UK Pension will increase yearly confirmed.

Ha,
I've just had a Email from Gov.uk!
At least its increasing yearly, thought if was going to be frozen after 31 Dec.
I was not aware of that till today.... makes me happy.
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Old May 13th 2021, 2:28 pm
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Default Re: UK Pension will increase yearly confirmed.

Be great if it was increased to match pensions paid by the EU member countries.
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Old May 13th 2021, 3:10 pm
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by missile View Post
Be great if it was increased to match pensions paid by the EU member countries.
Hardly likely to happen unless tax and social security contributions are increased to the level paid by EU member countries - and top ups such as Winter Fuel Allowance, free prescriptions, free spectacles, hearing aids and dental treatment, free bus travel (and free rail travel in London) available to all pensioners regardless of income in the UK, and Pension Credit, Council Tax exemption and Housing Benefit for those on the lowest pension incomes, are scrapped and all of those things have to be paid for out of the basic pension.

In Germany, for example, pensioners continue to have to pay compulsory health insurance after retirement (contributions are in excess of 15% of income). Would UK pensioners like to swap their free at the point of use NHS treatment for that?

https://www.sbk.org/sbk-en/advice/in...%20of%201.3%25.

Last edited by Lynn R; May 13th 2021 at 3:23 pm.
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Old May 13th 2021, 7:35 pm
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by Lynn R View Post
Hardly likely to happen unless tax and social security contributions are increased to the level paid by EU member countries - and top ups such as Winter Fuel Allowance, free prescriptions, free spectacles, hearing aids and dental treatment, free bus travel (and free rail travel in London) available to all pensioners regardless of income in the UK, and Pension Credit, Council Tax exemption and Housing Benefit for those on the lowest pension incomes, are scrapped and all of those things have to be paid for out of the basic pension.

In Germany, for example, pensioners continue to have to pay compulsory health insurance after retirement (contributions are in excess of 15% of income). Would UK pensioners like to swap their free at the point of use NHS treatment for that?

https://www.sbk.org/sbk-en/advice/in...%20of%201.3%25.
UK pensioners don't get free dental treatment, earing aids or spectacles? They get free eye tests. Only those on benefits get these things for free. The new single tier pension means that most benefits that were available to pensioners are no longer available hence single tier. Also for pension credit one has to have very limited savings.
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Old May 13th 2021, 9:04 pm
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by missile View Post
Be great if it was increased to match pensions paid by the EU member countries.
These days the Spanish state pension is only generous for those lucky enough to find a job that pays a high base salary for at least 15 years. I suspect that will go up to 20 years soon enough. AFAIK the UK is also relatively generous with its private pension incentives, although annuities have been dire in recent years. I've yet to meet anyone in Spain with a decent company or private pension. The state pension and maybe renting out property are the only options here, and renting out property isn't so easy in Spain either.
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Old May 13th 2021, 10:02 pm
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by chopera View Post
These days the Spanish state pension is only generous for those lucky enough to find a job that pays a high base salary for at least 15 years. I suspect that will go up to 20 years soon enough. AFAIK the UK is also relatively generous with its private pension incentives, although annuities have been dire in recent years. I've yet to meet anyone in Spain with a decent company or private pension. The state pension and maybe renting out property are the only options here, and renting out property isn't so easy in Spain either.
It appears to me, that the average Spanish State Pension is currently greater and one can retire earlier than in UK .......... see CAB Spain (citizensadvice.org.es)

How Much Do Spanish Pensioners Get? Nowadays, the average pension is about 900 euros / month.
The average UK state pension is £175 per week, i.e. £758 / month
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Old May 14th 2021, 6:50 am
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Default Re: UK Pension will increase yearly confirmed.

So if you take into account the exchange rate, then about the same but of course contributions in Spain are considerably higher.
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Old May 14th 2021, 6:55 am
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by rspltd View Post
So if you take into account the exchange rate, then about the same but of course contributions in Spain are considerably higher.
I was just about to say the same, plus as I said earlier pensioners in the UK get more additional benefits (definitely do still get WFA, free bus travel and free prescriptions irrespective of income, even if only those on Pension Credit now get free dental treatment, etc).

And the non contributory pension in Spain for those who have not been able to contribute enough to qualify for a minimum state pension is €430 per month, with none of the additional benefits available to those who qualify for Pension Credit in the UK.
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Old May 14th 2021, 6:58 am
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by rspltd View Post
So if you take into account the exchange rate, then about the same but of course contributions in Spain are considerably higher.
are they?
Spanish pensions are funded by contributions from employees at around 4.7% of their salary. Employers contribute 23.6% of an employee’s salary. In UK: You pay 5% and many employers will pay the minimum 3%
Pension rankings were examined in mid-April through a House of Commons Library Briefing Paper written by Roderick McInnes.

This report compared the pension systems among UK, EU and OECD savers and within this report, the Mercer CFA Institute Global Pension Index was utilised.

This index annually cross-examines the pension systems of 39 countries, utilising more than 50 indicators.

The latest report placed the UK in 15th place, achieving an overall score of 64.9 (out of 100) with a corresponding grading of C+.

Last edited by missile; May 14th 2021 at 7:06 am.
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Old May 14th 2021, 7:05 am
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Default Re: UK Pension will increase yearly confirmed.

And employer NI contributions in the UK are only 13.8%.
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Old May 14th 2021, 7:32 am
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by Lynn R View Post
And employer NI contributions in the UK are only 13.8%.
Comparing different countries’ pensions is problematic because of the differences in pension systems. Data shows the UK State Pension is relatively low compared to other countries, no matter how you measure it.
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Old May 14th 2021, 7:54 am
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Default Re: UK Pension will increase yearly confirmed.

Cash in the properties worth zillions trade down (pay no tax) and pension sorted.

Not such a big option here
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Old May 14th 2021, 8:58 am
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Default Re: UK Pension will increase yearly confirmed.

Originally Posted by missile View Post
Comparing different countries’ pensions is problematic because of the differences in pension systems. Data shows the UK State Pension is relatively low compared to other countries, no matter how you measure it.
But you cannot just take one element (state pension) in isolation to reach any kind of conclusion about people's income in retirement.

I notice you didn't address the point I raised earlier about the fact that pensioners in Germany still have to pay compulsory health insurance in retirement. A pensioner in Germany pays 14% income tax on all income over €9,744 plus 15.9% health insurance, plus 3.05% social care insurance - a total of 33.04% in deductions from their income. Compared to a UK pensioner who pays 20% income tax on income over the personal allowance of 12,570 pounds and nothing more.

In Spain, once I start to receive my UK state pension next year I will be paying a third more in income tax than I would pay if I lived in the UK (I already pay some, a couple of hundred more than I would pay in UK), as I will no longer benefit from the Spanish low income allowance once my income goes over the relevant eligibility threshold. I won't get free prescriptions or free bus travel, or any help with domestic energy bills, unlike a UK pensioner with the same level of income.

Last edited by Lynn R; May 14th 2021 at 9:11 am.
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