Pension
Freezing
525,000 UK Pensioners
never have annual increases to their pensions
At first the pension was only paid to people living in the UK, but in 1929 this was extended to people living in "Empire" countries.
The old pension scheme only covered people in low paid occupations, but it was made universal in 1948, with the introduction of the National Insurance Scheme. From that time on, the same rules applied to everybody:
except for those who lived overseas
The first breach in universal cover happened in 1946, when the pension rate of 10/- was increased to £1:6/-, but not for people who did not live in Britain. Some feeble excuse was invented.
Payment of state pensions was slowly extended, at first to a handful of countries in Europe, but in 1955 they were paid anywhere in the world.
The rates of pension are indexed. For a few years indexation only happened every 2 or 3 years, but for a long time now it has been an annual event
except for some of those who live overseas.
Under European rules, indexation is granted to all UK pensioners living in European countries. And under treaties with other countries, indexation is granted to pensioners living in these countries. But for most pensioners living in "Empire" countries the pension is not indexed.
British State Retirement Pension Rates
* If you had retired, at 65, in a frozen country in 1988, with a full 40 years of contributions, you would have received a pension of £41.15.
* If you were still in that country today you would be 85 and still on the same pension.
* If you had retired to a non-frozen country, such as Barbados in the sub-tropical West Indies, at the same age and in the same year your pension today would be £90.70. You would also get a Winter Fuel Allowance !
More than double but based on the same number of contributions to National Insurance.
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Weekly single rates over the past 50 years |
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Exchange rates used are those current for July 2008 |
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| Retirement Year | Full rate £ | Canadian $ | Rands | Australian $ |
| Prior to 1948 | 0.50 | |||
| 1948 | 1.30 | |||
| 1958 | 2.50 | 4.99 | 38.12 | 5.14 |
| 1965 | 4.00 | 7.98 | 61.00 | 8.23 |
| Apr - '75 | 11.60 | 23.15 | 176.90 | 23.86 |
| Nov - '75 | 13.30 | 26.57 | 203.13 | 27.34 |
| 1976 | 15.30 | |||
| 1977 | 17.50 | |||
| 1978 | 19.50 | |||
| 1979 | 23.30 | |||
| 1980 | 27.15 | 54.25 | 414.67 | 55.81 |
| 1981 | 29.60 | |||
| 1982 | 32.85 | |||
| 1983 | 34.05 | |||
| 1984 | 35.80 | |||
| 1985 | 38.30 | 76.53 | 584.96 | 78.73 |
| 1986 | 38.70 | |||
| 1987 | 39.50 | |||
| 1988 | 41.15 | |||
| 1989 | 43.63 | |||
| 1990 | 46.90 | 93.71 | 716.31 | 96.41 |
| 1991 | 52.00 | |||
| 1992 | 54.15 | |||
| 1993 | 56.10 | |||
| 1994 | 57.60 | |||
| 1995 | 58.85 | 117.59 | 898.83 | 120.97 |
| 1996 | 61.15 | |||
| 1997 | 62.45 | |||
| 1998 | 64.70 | |||
| 1999 | 66.75 | |||
| 2000 | 67.50 | 134.87 | 1,030.93 | 138.75 |
| 2001 | 72.50 | |||
| 2002 | 75.50 | |||
| 2003 | 77.45 | |||
| 2004 | 79.60 | |||
| 2005 | 82.50 | 163.94 | 1,253.16 | 168.66 |
| 2006 | 84.25 | 168.34 | 1,286.76 | 173.84 |
| 2007 | 87.30 | 174.43 | 1,333.34 | 179.45 |
| 2008 | 90.70 | 181.22 | 1,385.27 | 186.44 |
| Exchange rate used below is current for October 2009 | ||||
| 2009 | 95.25 | 160.08 | 1,131.27 | 170.046 |
The Lucky Ones
535,000 UK Pensioners are lucky enough to still receive their full pensions,
despite living overseas
As in the case of Europe the United States of America differs from all the
Commonwealth countries. America's power ensures that if any British
pensioners should choose to live there in their retirement they will receive
their pension dues from Britain in FULL.
Take a British pensioner living on the American side of the Niagara Falls,
who reached retirement age, and retired to America, in 1990 with a complete
record of mandatory contributions to the National Insurance Funds. In 2009 he or she
would receive the full British pension of £95.25.
However should another British pensioner, with exactly the same pension
history, have retired to live on the Canadian side of the Niagara Falls, at
the same time, he or she will still be receiving the 1990 pension of £46.90.
Barely less than half the pension for which they made contributions.