Most UK citizens have just been stabbed in the back again by the UK Government with the new pension rules. For people who have made financial plans to retire at 60 (female) or couples that have worked this pension benefit into their retirement needs at 60 and others at 65 now will not receive any benefits until age 66.
The government calls it an austerity measure yet they will not start to reap any real money in for this measure for over 5 years. Austerity measures are needed to save the country money now, this pension scam is really just a way to radically change the UK state pension system earlier than forecast using the current crisis as a cover story.
This radical change of policy does not give middle aged people enough time to make new plans for retirement at their current expected age.
There is insufficient time to make investments that will cover the new shortfall even if people could take on the additional outlay.
A few years ago the government introduced full transparency for all investment products including pensions, which meant that all fees, charges, commissions, full product terms etc must be disclosed, shown and explained in clear simple English. The only exception to this full disclosure it seems is the government itself with its own pension scheme.
At first view it purports to be a defined benefits scheme with returns based on contribution levels and the term of investment to the current retirement dates for male and female. Yet the government can change all elements at will without having to answer to the people actually paying in.
Why don’t they call it what it really is, another working tax where people have to pay in and may or may not at some time in the future get a rebate if the government feels like it?
That is the reality of the situation.
It is only recently that the government has finished reducing the state bonus pension payout (S.E.R.P.S.) by 20 percent!
People who have carefully planned for retirement and have, for example, received a pension forecast from the government finding that they had a shortfall in years and elected to buy extra years so that they could retire as planned now find that the government has said “hard luck” we will not honour that and now you will have to wait up to 6 years before we pay out! Since they received advice from the government surely it must be accountable to them for the situation people now find themselves in? Women in their late 40’s and early 50’s who made provision to retire at 60 are now going to lose out by approximately 41,200 pounds in benefits plus a 6 year delay, unless of course the UK government moves the goalposts again before then!
Males will only lose one year’s benefits (approx 6,900) at current rates.
For couples, add the two together to see how much you have been screwed for.
Typically UK pensioners receive around 10,000 per annum having paid into the scheme for years, yet E.U. immigrant workers (a couple) that come to the UK can claim approx 29,800 pa in benefits straight away.
Surely adjusting this state of lunacy would be a good austerity measure and save the country millions?
In theory… for expats who do not receive indexed pension benefits I suggest that you do what the UK Government does “lie” … open a bank account in the UK and have your benefit paid in there.
There is no other UK pension scheme that dictates what you will receive based on where you live at the time you take your benefits.
If you are registered as an expat for UK income tax then re-register your tax status as UK tax payable and register your address in the UK (friend or family). Declare your savings as minimal as I am sure you will not have any due to the rising baht. Then you can apply for the indexation as you are registered as living in the UK.
Should you then later decide to have extended holidays abroad, well…