Contact

News & Insights

Expat Campaigners Close in on Frozen Pension Change

There is undoubtedly a strong argument for change – those affected paid the full level tax and national insurance contributions throughout their working lives in the UK yet, due to archaic laws, receive only a fraction of the pension received by expats based in other locations.

For many years the UK has had reciprocal pension arrangements with certain countries, where pensioners are paid the full going rate. This includes countries in the European Economic Area. Yet curiously, those in former commonwealth countries such as Australia, Canada, New Zealand and South Africa are on the end of a glaring and unacceptable expat pension inequity, receiving only the level of pension that was in place when they left the UK rather than the level their peers are entitled to today.

The worst part of all this is that this longstanding inequity could easily be remedied. In fact, the government has had the chance to do so every year for the past seven decades as part of its annual update of the terms of state pension. However, with the next review not due until spring 2019 there are fears that the government might again pass up the opportunity to make changes through the Social Security Benefits Up-rating Regulations.

As such, a campaign group, End Frozen Pensions, has been formed to bring about the necessary expat pensions changes.

“By building a parliamentary alliance we will stop this Government trick and end the frozen pension policy,” said a spokesperson with the group. It is estimated that the necessary changes would cost around £500 million a year. However, given that by being outside of the UK, expats place no additional strain on the UK’s health and welfare resources it is hard to make a persuasive economic justification for continuing the expat pensions inequity.

Sir Roger Gale, Conservative MP for North Thanet in Kent and chairman of the parliamentary group on Frozen British Pensions, commented, “There is a group of people who have served this country and paid their dues throughout their working lives who now find that their pensions are frozen. It leads to the anomaly where a pensioner living on one side of Niagara Falls has a frozen pension, while a pensioner living a few hundred yards away on the other side in the US has an uprated pension, annually. It is nonsense and iniquitous.”

Pensions Advice from Blacktower FM

Blacktower is a cross-border wealth management specialist with particular expertise in the area of expat pensions.

Not only can we help you with pension planning and expat retirement transfers, we can also make an assessment of all your assets and income streams, including the state pension, so that you have a clear idea of how best to structure your wealth in order to achieve your financial goals.

Contact us today for more information.

Other News

No More Tax Exemptions

No More Tax ExemptionsHands up if you still own a property in the UK, but have residential status in Tenerife, or indeed anywhere else in the world?  

If you’re one of the many thousands of expats, who decided to keep a foothold in the UK property market, ´just in case´, then potentially, you may well be out of pocket when you decide it´s time to sell.   This is yet another one of the latest steps in a series of significant changes affecting the taxation of UK residential property in recent years.   Up until the 6th of April 2015, non-UK residents have always enjoyed being exempt from Capital Gains Tax (CGT) on private residences, and also had the right to claim Private Resident Relief… regrettably for many, this is no longer an option – the rules have now changed!  Capital Gains Tax (CGT) has been extended to non-UK residents with effect from the 6th of April this year.  

Read More

Consolidate your Irish pension

Sunset over rocks on a beachOne of the best pieces of semi-financial advice I ever received was about buying clothes: buy good quality (obviously) and then have the garment altered to fit me specifically; sound financial and sartorial sense. Of course, this means going a little further than one might normally when buying a new outfit, but it’s a little extra that I think is more than justified in the end. Ready-to-wear clothes are great without doubt, but having something that fits you perfectly gives a continued feeling of satisfaction with every wear, it’s so worth it. There are parallels to be made in my professional life as well; it’s such a pleasure to be able to offer clients advice and products that are tailormade to their requirements and fit their circumstances perfectly.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.