Editor;
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...
CAW
