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Friday, January 25, 2013

UK Is Dishonest Not Paying Pensions

The battle goes on between Australia and the UK about the shortchanging of British people who were born, lived and worked in their homeland before emigrating. They paid their taxes and crucially paid there "stamp" every working week toward the state pension. However, the UK does not align payments with inflation for ex-pats living in "wealthy" countries, only those retiring in developing nations. UK governments, indeed previous governments of all political shades, have "stole" from these elderly people.

Today the British pension paid to those who emigrated permanently to Australia is worth a pittance. There is no way they could live on it. Australia has to make up the shortfall even if ex-Brits have lived in Australia for only a few years before retiring. This is disgraceful behavior from a supposedly civilized country. It certainly fails the Australian norm of a fair go.

On average the rate of pension paid to those living in the UK is more than double what ex-pats receive. Each recipient gets the British rate upon the day of retirement. This means those who live to an old age get a few pound a week.

The rule is not even consistent. Brits retiring in the US and Israel get inflationary increases. As Jim Tilley chairman of British Pensions in Australia (BPiA) says: "These guys are a bunch of hypocrites."
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