‘It just doesn’t add up.’ – A 95-year-old pensioner misses out on an £80,000 state pension payment.
PENSION FROM THE STATE Payments will represent a significant portion of a person’s retirement income, although not everyone will be eligible for the annual increments provided by the UK state pension.
Under the current triple lock arrangement, the state pension in the United Kingdom rises every year. This implies it rises each year by the higher of the average percentage growth in salaries (in Great Britain) or the percentage growth in prices in the UK as determined by the Consumer Prices Index, out of a range of 2.5 percent (CPI).
For those who have a protected payment, it rises in line with the CPI each year.
Some people, however, will not receive the annual increase due to where they live, a problem known as frozen pensions.
If you live in one of the following states, your state pension will only grow each year:
The annual raises will not be available to those who live outside of these nations.
If they return to the UK, their pension will be increased to the current rate, according to the Government website.
According to a study briefing on frozen foreign pensions published in the House of Commons Library, there were 492,176 people receiving a frozen UK state pension in May 2020.
This means that their pension will continue to be paid at the same rate as when they first became eligible for it, or, if they were already retired, when they left the UK.
Those opposed to the program include Ian Andexser, Chairman of the Canadian Alliance of British Pensioners (CABP), and Nigel Nelson, former chair of the International Consortium of British Pensioners (ICBP).
Both campaigners live in Canada and spoke with This website about the issue lately.
The policy’s impact will vary from person to person, but what experiences have the two campaigners heard about?
For some, the financial consequences make life difficult, while others claim that “it’s the principle” that certain people are unable to get the increased pension.
“From a personal standpoint, I believe the financial impact of a frozen pension is irrelevant,” Mr Andexser told This website.
“It doesn’t matter to individuals who need money.
“However, it’s the principle of the matter.
“And certainly, there are those who are struggling in every country on the planet.”
For others, the inability to collect the increased pension due to inflation has made getting by a significant hardship.
Brinkwire Summary News: “There’s a 95.”