Expat State Pensions Battle in Court

Published / Last Updated on 02/09/2009

Expat State Pensions Battle in Court

A court case brought by British expatriates against the British Government is now with the European Court of Human Rights.

In short, a test case is now with the European Court of Human Rights as some pensioners who live overseas do not get their state pension linked to inflation.

If you are a retired expat and you live in Europe, you get full inflation protection on your state pension in the same way as if you had stayed in the UK.  If you live in countries such as Australia, Canada and South Africa you get no inflation pay rises and your state pension is frozen on day one.

There are a number of countries such as the USA and Turkey, where the UK does have reciprocal agreements for state pension increases and this, we believe is fair.

However, not having treaties with others, we believe is not.  This is potentially a financial disaster for the Government that may cost millions.  We believe it is ethical and right to inflation protect all those who have paid into the UK state pension system.  However, we suggest the costs involved will mean the Government will fight it all the way.  

It is a shame they spent so much on bailing out Banks and nothing on protecting those who have genuinely paid their National Insurance over the years.

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