AFPS and state pension increase from next April.

[Al R]

3%. I'm happy enough with that. Unless Philip Hammond changes anything next month..

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2017

[Onceapilot]

As expected. Taking bets on when the base rate reaches 3%?:ooh:

OAP

[Al R]

If Hammond wants any chance of replacing May, I imagine the screws will be turning on Carney to do very little, if anything, this side of Xmas. Aside from that, sluggish growth means that May won't want much of a change, either.

[Onceapilot]

If Hammond wants any chance of replacing May, I imagine the screws will be turning on Carney to do very little, if anything, this side of Xmas. Aside from that, sluggish growth means that May won't want much of a change, either.

Agree, but the main Western treasuries are competing in the QEasing stakes, UK is losing productivity by a wide margin so, unless T. May is happy with £ parity with the Euro, rates will have to rise. :uhoh: I suspect we will see 0.5% before Christmas, 3% Base rate by 2020. :hmm:

OAP

[Melchett01]

3%. I'm happy enough with that. Unless Philip Hammond changes anything next month..

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2017

Well he's got to pay for the student vote somehow ...

[Al R]

Because the lifetime allowance (LTA) increases in line with these particular inflation figures too, it rises to £1,030,000 next year. If you're above the current £1,000,000 limit and don't have protection, the increase could cut your LTA excess tax charge by up to c.£16,500, and could boost your tax-free cash by £7,500 (scheme details dependant).

[Wander00]

Does not do much for those of us living on the mainland, where the fall in the value of the pound has decreased our UK derived (ie pensions, state and occupational) income by 20% odd

[brakedwell]

Does not do much for those of us living on the mainland, where the fall in the value of the pound has decreased our UK derived (ie pensions, state and occupational) income by 20% odd

You can blame the brexiteers for that :*

[Haraka]

Does not do much for those of us living on the mainland, where the fall in the value of the pound has decreased our UK derived (ie pensions, state and occupational) income by 20% odd
Well at least you GET a NP increase. Those of us retirees in many countries have our U.K. National Pensions frozen, have no reciprocal medical cover, cannot vote in the U.K. yet are still taxed at source on our total UK pensions.

[Wander00]

braked - too true, and the muppets who could not negotiate their way out of a soggy paper bag

[Al R]

Well at least you GET a NP increase. Those of us retirees in many countries have our U.K. National Pensions frozen, have no reciprocal medical cover, cannot vote in the U.K. yet are still taxed at source on our total UK pensions.

Are you in the EU? And is it your occupational pension, or your basic state pension? This might help.

Britain and EU reach agreement over expats' state pension after Brexit (http://www.telegraph.co.uk/pensions-retirement/news/britain-eu-reach-agreement-expats-state-pension-brexit/)

Members of schemes such as AFPS receive annual upratings in line with inflation, paid irrespective of where you live (3% yesterday, huzzah, break out the Lidl Prosecco). However, there is an issue connected with the annual uprating of the Guaranteed Minimum Pension (GMP) part of it. AFPS was contracted out of State Earnings Related Pension Scheme (SERPS) in April 1978. Under legislation of the time, anyone who was contracted out paid lower National Insurance Contributions and in return, their private pension scheme is expected to provide a pension over and above the basic state pension for that SERPS element alone.

Be glad you're not in the British Steel Pension Scheme. The proposal is, and it'll happen, that all pre 1997 indexation stops. Even for pensions in payment. Members have until Dec 11th to decide whether to accept PPF rules, the new scheme (as mentioned), or transferring out to a defined contribution pension. Remember the AFPS RPI/CPI switch? It won't be the last fastball.

[Haraka]

Al R
No ,Not in the EU. Thankfully I have an RAF Pension- (from which the tax is taken) .

[MPN11]

Not in the EU either, so our RAF pensions are paid gross and then taxed in Jersey. Same with our State pensions.

Pleased to note our local RPI inflation figure is 2.5%, and undoubtedly includes a lot of factors that don't apply to us, so I shall celebrate with a bottle of Prosecco next April ;)

[glad rag]

You can blame the brexiteers for that :*

Funny you should mention that.
I've been thinking these last decade(s) or so that the cash in my pocket wasn't buying the same as it did before, despite having inflation rates officially <1%.....
Now, suddenly, inflation is 3% the pound has shrunk etc etc. Now we are seeing reality for the first time in decade's and yet you blame "BREXITEERS"


Indeed. Indeed. :ugh:

[MPN11]

It's a broad calculation, is it not? As linked up-Thread by Al_R, it depends on where your individual spend gets impacted. I'm cool, but then I'm not running a petrol/diesel car, and have all the household goods we need.

[langleybaston]

Well at least you GET a NP increase. Those of us retirees in many countries have our U.K. National Pensions frozen, have no reciprocal medical cover, cannot vote in the U.K. yet are still taxed at source on our total UK pensions.

i trust you knew the rules before moving? It was one factor that stopped me.

[MPN11]

i trust you knew the rules before moving? It was one factor that stopped me.We considered [briefly] retiring to the USA, and even viewed a house [near D.C.], until I started doing the sums and the tax position..

Idyll has its downsides.

[Haraka]

langleybastion
A MPN11 has said, Idyll has its downsides and you have to make a considered judgement based upon your circumstances, expectations and outlook ( for example, overall quality of life versus perceived standard of living). This we did some 25 years ago.
In our case the eroding U.K. pension, among several negative factors, has been outweighed by many other positive and ongoing features which have deterred us, so far at least, from considering returning to the U.K.

[Pontius Navigator]

Haraka, idle question, what would be the effect on your State pension if you returned?

One major factor for Repats is house prices.

There are places where you can get a reasonable apartment for £300k and further north a house too. Increasingly though New build south of the Trent/Severn (roughly) are 20 + to the acre with drive access rather than roads. In contrast we have room for 12 on our garden.

[Haraka]

Pontius
Apparently ,from those few we know of who have returned, it is reinstated to what it would have been had you stayed. Constant chatter overseas is that the situation is being reviewed, with one possibility being that we would regain the increments , but only based upon our current remittances .
Since Tony Blair's administration quietly disenfranchised us some years ago ( and therefore there are no votes in it) you can draw your own conclusions as to what the likelyhood of that is.

[Wander00]

I have never understood the logic of not uprating pensions of those who emigrate to some countries and not others. Seems even more illogical when it applies in Commonwealth countries. If it was an occupational or private pension you had paid into they could not deny increases, so why block State pension increases that people have contributed too. Surely of no interest to "host" nation, just UK Government being bloody minded it would seem. Probably some twist I do not know of

[The Old Fat One]

unless T. May is happy with £ parity with the Euro, rates will have to rise. I suspect we will see 0.5% before Christmas, 3% Base rate by 2020.

I have no idea what base rates will be in 2020. I do know with absolute certainty that whatever they are, Teresa May will have long since left the building. :cool:

[MPN11]

I trust you will all express your views at the Ballot Box?

https://www.gov.uk/voting-when-abroad

"Have YOU registered?" ;)

[Pontius Navigator]

MPN, our vote at the ballot box will have exactly the same weight as yours.

The only people who will accurately forecast the chances are WHill etc.

[glad rag]

"The civil servant responsible for increasing the State Pension age to 67 is retiring at 61 with a £1.8 million pension pot, he will receive £85000 a year and a lump sum of £245000. He's permanent secretary for Department for Works and Pensions. His name is Sir Robert Devereux, hope you all share this....explicit content redacted.."


UK Pension chief to retire at 61 with £1.8m pot having increased retirement to 67 | UK | News | Express.co.uk (http://www.express.co.uk/news/uk/865327/Pension-Civil-service-Labour-Robert-Devereux-transport-UK-national-salary)

[Red Line Entry]

Ah, this is the PPRuNe we know and love! Enjoy your 3% - how much will those still serving get - and they will suffer the effects in their future pensions too.

I wonder, take 2 retired wg cdrs with 30 years service under AFPS 75: one retired on 1 Oct 2007, the other retired on 1 Oct 2017. How much will each receive as pension in Apr 18? I suspect the figures would be quite different!