British State Pension Guide Campaign for Pension Justice
A free independent guide from Pension to Canada
How the British State Pension system works
Future changes to the British State Pension
Campaign for State Pension Justice
What you Should be doing now
How the British State Pension Works
The British State Pension System is currently somewhat complex; it comprises the Basic State Pension and Second State Penison. The Basic State Pension which is the headline flat-rate figure widely quoted currently the maximum (which applies to those with a 90% record) is ÂŁ102.50 per week, approximately $7,500 Canadian a year. The State Second Pension is based on your British earnings. The whole system is calculated using your National Insurance Record
Jamesâ€™ British State Pension
For someone like James, who arrived only recently after spending the majority of his working life in Britain, you may be entitled to the maximum State Pension and State Second Pension which is currently approximately $14,000 Canadian per annum.
Now... The bad news! This amount is frozen for British Expats in Canada. For as long as James stays in a place he loves and calls home, he and millions of others like him will never receive increases to their British State Pension income leaving them 100% vulnerable to the effects of inflation.
â€œInflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit manâ€? Ronald Reagan
After 10 years your $100 will be worth $0.66
To demonstrate how inflation might impact you, lets start with $100
After 20 years your $100 will be worth $0.44 That illustration was based on inflation running at 4% per annum, much lower than the double-digits people experienced when Reagan was US President
Changes to the British State Pension
In his Budget speech on 23 March, George Osborne confirmed the government's intention to introduce a flat-rate state pension. He suggested this new pension will be worth approximately $10,000 Canadian per year (ÂŁ140 per week) - for those who qualify for the full amount which needs 30 years of National Insurance contributions. In 2020 the qualifying age will rise again to 66 for both men and women. In the Budget, George Osborne suggested that further age rises were in the pipeline, declaring that: 'I can tell the House that we will now seek â€“ hopefully with all-party support â€“ a new, more automatic mechanism for future increases in the State Pension Age based on regular, independent reviews of longevity.' What this means for future rises is uncertain, but it seems that a state pension age of 70 is not impossible for some working today. The rate of increases for people living in Britain and claiming the British State Pension has increased as it is now tied the higher of earnings, prices or 2.5% (historically earnings have risen at 1-2% per annum higher than price inflation) For people living in Canada it remains frozen. The difference in State Pension income between Canadian and British residents is set to increase at a faster rate than before creating an even greater disparity between people who have paid the same taxes choosing to retire in Canada.
Campaign for State Pension Justice!
Expats vs HMRC
After over 20 years of campaigning for the issue, the first "frozen" pensions case to be brought before a UK court was in 2001. The case was brought by Anette Carson, an expatriate who had moved to South Africa 11 years earlier The case has gathered support and has continued through the courts, most recently in 2010 The European Court of Human Rights rejected an appeal by an 11 to 6 majority. At the time, the BBC estimated the decision had saved HMRC ÂŁ500 Million per year costing expatriates inflation protection worth the same amount. With information and technology advances it is now easier than ever to support the campaign for pension parity with non-profit groups like The International Consortium of British Pensioners and the Canadian Alliance of British Pensioners. Organisations such as theirs are actively campaigning for a fairer system. An Early Day Motion or calling on the House of Commons to review the controversial policy, was tabled in June 2011, and has so far won the support of 50 cross-party MPs. It is rare for Early Day Motions to result in a Parliamentary debate which is why support is crucial for change to be made. An ePetition has been launched recently calling on the Government to end the unfair policy currently has over 8,000 signatures (including ours).
Take Action for Justice What should be doing now? Join the Campaign! Sign HMRC ePetition
Write a letter to your Local MP
Share With anyone you think will back the campaign for parity With anyone you think will benefit from knowing more about British State Pensions With anyone you know who has worked in Britain and is thinking about retirement
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What you should be doing now for your personal planning (by age) Under 60s Request Free British State Pension Forecast Ensure HMRC has your correct information Explore moving other British Pension Plan(s) to Canada Assess your overall retirement provisions with a Financial Planner
Approaching Retirement 60+ (Women) 65 (Men)
Contact British Government International Pension Centre
to arrange payment of your British State Pension
Explore moving other British Pension Plan(s) to Canada
Over 65s If you are not already receiving your British State Pension Contact the British Government International Pension Centre to arrange payment of your British State Pension
Campaign for increases to your British State Pension
Pension to Canada e: firstname.lastname@example.org t: 1-800-670-8172 w: www.pensiontocanada.com Legal disclaimer The information contained within this document is of a general nature and cannot be relied upon as, nor be a substitute for professional advice. The benefits and information vary according to residency and domicile. No liability will or can be accepted fro any consequences arising from any transactions embarked upon in connection with this information. Nor is the information contained in this document a solicitation to enter into such an arrangement, or does it constitute investment or financial advice. Pension and investment rules can be complex and you should always seek professional advice before entering into any such agreement.