[Jan Fisher]

British pensioners might want to take note of a lobby group attempting to change rules for retirees in Commonwealth countries.

The British Pensioners in Australia group last month spoke to British government representatives to as it to remove the rule that freezes pensions at the rate they retired.

The rule affects about 225,000 pensioners living in Australia. Only pensioners living in certain areas, including the US and EU, receive increases linked to indexation.

British pensioners are estimated to be out of pocket by about $40,000 for the life of an average retirement in Australia.

[GrumpyGrandpa]

British Pensioners in Australia (BPiA) have been lobbying governments for years trying to get this rule overturned. Many countries such as the EU, America, Jamaica and some other commonwealth coutries automatically get this adjustment, so why doesn’t it apply in Australia. Both major parties (while in opposition) tell us they will do something about it but nothing ever seems to change. Also, many expats who have moved to Australia, after having worked in the UK before coming here are able to claim a pension from the UK Government, but aren’t aware of it. Joining BPiA will assist you in claiming this pension and for the small yearly fee, will help fund the campaign to have this draconic rule changed

[johninmelb]

This battle has been going on for donkey’s years. Not going to change. British government is broke, so where is the money going to come from anyway? I only get $50 a month UK Pension from the time I spent there on a working holiday a long long time ago. Couldn’t see that increasing significantly if the rules changed, but every little bit helps.

[KSS]

Canada is the (only) other country that this rule applies to and it is blatantly unfair. One solution to johninmelb issue of the UK being broke, would be to stop paying ‘pensions’ to working holiday and other short-term residents, then redirect that money to other ex-pat pensioners who contributed for their whole working life.

And in case there are people who think ex-pat Brits are double dipping getting both a UK pension and the Australian aged pension, they are not. Whatever they receive from the UK is deducted from the Australian payment. So ultimately, Australia will pick up the tab for the underpayment of UK pensions over time. And the full UK new state pension is currently about 185 pounds a week approx $336 a week (the old basic full pension is just 145 pounds a week approx $260 a week) and you have to factor in currency exchange rates and bank fees which means the actual amount received may be much less. Compare Australia at $936 for a single person a fortnight – about $130 a week more than the UK pension, and still people say it is not enough. Consider those ex-pat pensioners who do not qualify for an Australian pension for whatever reason. They are particularly disadvantaged by this discriminatory and arbitrary rule of freezing the pension at the rate in place at the time of claiming.

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