Further Frozen Pension Myths

This one is a comprehensive myth. It came in the form of an email.

I shall add my comment later, but two comments come to mind,
1] You are welcome to come back and enjoy our Welfare State.
2] If you do, you had best hurry up before it's standing room only.
By the way I have retired to live in Malta, better climate then the UK. Good Airport connections and i even get my Winter Fuel Allowance.
Now my main Comment
As the UK State Pension Scheme is nothing but a giant Ponzi Scheme funded by the majority who contribute by living within the EU, UK.
Then it is only right that once you leave the EU, UK then all benefits should be frozen. After all you don't pay any more Taxes etc to the Exchequer, then why should the Exchequer pay you any more.

There are several misconceptions here that need to be dealt with.


State pensions are not paid from the Exchequer. They are paid from the National Insurance Fund. Look at Wikipedia on this subject.





Pensioners who live in Malta do not contribute to the UK economy, unless they have substantial income from rents, interest and dividends from the UK on which they pay UK tax. They do not pay UK tax on their UK pensions. They do not pay VAT to Britain on purchases they make in Malta, even on fuel purchased from their Winter Fuel Allowance.


Pensioners who live in the USA or the Philippines do not have their pensions frozen. There are one or two other non-EU countries where pensioners enjoy annual increases. But there are two countries in Europe where UK pensions are frozen. Andorra and Monaco.


When a frozen pensioner visits UK or EU countries, the pension is upgraded as if they had always lived there - as if they had never been frozen. This is only for the duration of their visit. But if they return for permanent residence their pensions are paid as if they had never been away.


If it was justifiable to refuse to pay increases to us on the basis that we have left the UK then it could be justifiable to stop our pensions altogether. And this has never been contemplated.


A prospective pensioner who lives overseas in a non-EU country is permitted to increase his pension by paying voluntary contributions. This facility is extended also to recent retirees who were not aware that they could make additional contributions. Such additional contributions are, of course, paid into the National Insurance Fund and not into Treasury.

For other myths, see Frozen Pension Myths

See also National Insurance Fund

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