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Proposed Changes to British State Pension
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Re Pension Changes
The State Pension changes proposed by the government today is a real breath of fresh air and possibly the best thing the Coalition has come up with to date.
In case you have missed the prime minister, David Cameron, and Vince Cable talking about this, the proposal - in short - will replace the complex pension system with a flat rate of £140 per week for all state pensioners.
Not least among the reasons for change is that it will give an increase in the state pension in real terms, helping many pensioners who are pushed to the wall due to inflationary increases in things they require for basic sustenance.
This will also free many pensioners who would like to travel and perhaps live abroad part of the years. At present, if their pension is made up of pension credits, they have severe restrictions on how long they can be away and how many times they can travel per year in order not to lose their benefits.
At the moment, the system is so unfair on pensioners who have lived and worked in a country that has no reciprocation as regards unemployment contributions. In their case, perhaps a lifetime of work goes unrecognised in the UK as regards their contributions, although they have paid taxes and deductions all their lives to other foreign countries.
The government is currently a “sitting duck” in that a huge surge in people currently not claiming pensions and/or benefits, but now deciding to do so en masse, could result in an economic tsunami capable of sinking the ship.
The UK is far behind many countries in the EU in the payment of their senior citizens: this would help to narrow this gap and, indeed, answer to some extent discontent in the Union over Britain’s scandalous system of maintenance for its retired work-force.
The relief in the sweeping away of bureaucracy, replacing a creaky old system that should have been done away years ago, will be palpable.
This new system will allow freedom for many who have their stipends made up with bits and bobs: pension credits and all the rest. A pensioner not receiving a full pension, but having a percentage made up from credits, etc., will now be able to work as a full pensioner can without wondering just what his rights are to do so.
This will do away with any more means tests: those lucky enough to not need the state pension maybe encouraged to opt out of receiving it, depending on the future of their situation.
This will go a long way to allowing British senior citizens on state pensions to hold their heads up and perhaps afford a few of the luxuries denied to them over recent years.
And it will certainly ensure that many stay faithful to the Conservative/Liberal Coalition in future elections!