Amongst our many updates regarding pensions, Global QROPS Ltd are keeping up to date with the appeal to the European Court of Human Rights (ECHR), by overseas pensioners, regarding the situation on the indexing of state pensions.
For the past 8 years a battle has been fought by the many UK state pensioners living abroad in countries such as Australia, Canada, South Africa, Nigeria and New Zealand, over the fact that their UK state pension benefits are not indexed whereas people retiring in EEA countries or the USA (for example) still receive indexation on their UK state pension.
Unfortunately for the pensioners that do not receive indexation, the ECHR has ruled that the UK’s decision not to index their pension is ‘not discriminatory’. The EHCR have argued that migrants moved to economies and societies outside of the UK by choice. Furthermore, it is not the ECHR place to interfere in a political decision as to the redeployment of public funds.
This is a blow to many migrants and Global QROPS Ltd clients, who will continue to see their UK state pension paid at a flat rate throughout their retirement, but no doubt a relief for the UK Government who would have had to pay an estimated £500 million extra each year had the EHCR ruled in favour of the appeal.
The current UK pension is £95.25 a week with pensioners who retired as far back as the 1970’s receiving as little as £6 per week, without the increase.