Uk State Pension - Possible Changes

[Baht Simpson]

"Lord Turner wants to improve the existing state pension scheme by restoring the link to earnings, so it becomes more generous and fewer people require means-tested benefits.

But the Pensions Policy Institute (PPI) said the current complex scheme could be scrapped and replaced by a simpler one with entitlement based on residency rather than National Insurance contributions. "

http://news.bbc.co.uk/1/hi/business/4855592.stm

It will be interesting to see how this pans out. A while before the last election I heard a Tory MP suggesting something similar. Their plan was that State Pension could only be claimed if the claimant had resided and worked in the UK for the ten years before the age of 65. If this is brought in and is not grandfathered then a lot of expat retirees will lose out. They will probably raise the state pension to 70 in any case.

Edited March 29, 2006 by Baht Simpson

[Phil_Pattaya]

I would assume that 'grandfather rights' will apply as many people have planned their retiremnet funding with the state pension in mind who dont work from 55 on so not only expats will suffer.