British Pensioners in Europe and beyond - An Analysis.

British Pensioners in Europe and beyond – An Analysis.

The emigration of pensioners to Europe and beyond.

 The countries coloured Blue are in the EU.  Those without star *  have pensions frozen at the time the recipient emigrated.  

Of  the 12,955,300 Citizens who receive the UK State Pension, by 2015 - 1,230,390 live outside the UK. That is 9.5%. 

QUESTIONS………………….

1. Why do the pensioners emigrate? 
2. Why has the numbers generally flattened off since 2011?
3. Is this emigration of advantage or not to the British Economy?
4. What are the advantages or disadvantages to the pensioners in emigrating?
5. Why have the numbers in Pakistan and Jamaica fallen so much?
6. And why have they fallen in Australia and Canada and South Africa?  - And Italy?
7. Why have the numbers risen so much in N.Z., Ireland and France between 2008 - 2014? Why the increase to India – a frozen pension country?

Suggestions for the answers – derived from anecdotal evidence.

1.  Why do the pensioners emigrate? 

            It varies –

Often the housing costs are considerably cheaper.  (Much of Europe,)

Some are joining children who have previously emigrated. (Australia, Canada)

Some are returning to the land of their birth. (India? Jamaica? Ireland? )

Summer weather/climate is drier and warmer  (Much of  Europe)

The countries of retirement are English Speaking  (Ireland, N.Z. etc)

There is more space and a less hectic way of life (Much of Europe).

The desire for new adventure while there is still time -- 

Exposure to a different culture ,and, learning a new language, broadening experience

Some dislike of changes in the UK, especially any which restrict their lives.

2. Why has the numbers generally flattened off since 2011?

The threatening approach of a possible Brexit? (All Europe curves). The Times journal 29/03/16 reports that ‘a hundred a day are returning to the UK from Spain’.

See also Italy q.7 below. Austerity?

Remembering that everyone has a certain life-span.  The increase in numbers represents additions minus deaths.  It is likely that a ceiling in the curve of those emigrating would be reached. However note the countries where the %’s fall.
Further a slight addition could be of those who have achieved pensionable age whilst living abroad.

3.  Is this emigration of advantage or not to the British Economy?

.Positive  - The pensioners do not use the physical facilities of the NHS, even though those in Europe get some payment of their medical care.  Those far from Europe get no support.

They free up some housing stock.

They do not use the free bus passes and TV licences which saves money.

Many have UK based investments, benefiting the economy, and could and would  do so more if the UK Government made it easier.

Negative – Their pensions are not all spent in the UK economy.

4. What are the advantages or disadvantages to the pensioners in emigrating?

Positive – as listed generally in answer to 1.

Negative – Lack of any voice at all at the political level – leading to no voice in the manner and use of UK investments.

A feeling of almost total neglect or lack of interest in them by the British Government.

In certain countries the pension falls in value year by year as it is frozen.

5. Why have the numbers in Pakistan and Jamaica fallen so much?

Possibly the standard of living and Governance of these countries is a problem. Pakistan also has a frozen pension regime.

6. And why have they fallen in Australia and Canada and South Africa?.

The freezing of the State pension is a very likely cause.

And Italy?  Uncertain – The fears of a Brexit seem most likely.

7. Why have the numbers risen so much in N.Z., Ireland and France between 2008-2014?

N.Z. provides pensions which supplement the frozen UK pension and it is a very ‘English’ country.

Ireland is almost certainly the birth-land or ancestral land of many UK State pensioners. It has more space and in many ways is so similar to England.

France is adjacent to England and there is easy access to family and friends, within a short time travel.

India has a steadily rising economy, but is at present an economical country. It has little religious friction, and would be attractive to retiring ‘British’ Indians, who have done well in the UK.

Postscript –  It can be argued that it is in the interest of the British economy to encourage the pensioners to retire abroad (q.v. 3 above).  It is unfortunate that the Government puts difficulties in their way with regard to investing in British enterprises, and financial institutions. Many (especially in the EU) buy goods from the UK.

The figures are all derived from published Government Statistics on the State pension.

On the Matter of Frozen Pensions

To go the Index click here

An article appeared in The Telegraph on  December 1^st 2011by Leah Hyslop.

It is on the absurdity of the State (Old Age) pensions being frozen when paid to people who have retired abroad,  mostly to commonwealth countries.

Curiously, the issue was raised by the Runnymede Trust which is a think-tank on race relations. To discover more  - raise this link.

The Telegraph.....Think-tank-slams-frozen-pensions-policy

Before you switch off and say ‘This has nothing to do with me!’ stop and ponder.

1   It is fascinating that the matter of the Frozen Pensions is raised via particular concern for the Asian and West African people who immigrated to Britain to seek work up to forty years ago and who wish to retire back to the country of their birth. 

In contrast, any sympathy for the retired Britons descended ancestrally from resident British stock has not up to now achieved anything at all!   If the Runnymede Trust can achieve progress – then let us praise them.  But is it not a curious development?  But the Runnymede Trust is an influential body and it may well yield results where others have failed.

2   The major slant I draw on this is the power that comes through having a Voice.

The Runnymede  Trust is a respected body and possibly the Government will listen.

If only the Expatriates would rise up as a body and declare ‘We Want a Voice’,

Then the expatriates of all colours and creeds might achieve something. 

‘We Want a Voice’    can be interpreted as

‘We want Representation’   which can in turn be interpreted as

‘We want the Vote’ – for LIFE.

If the expatriates could somehow exercise pressure on the British Government, if only!

But they never will unless they stand together, and stand up for justice.

Read and sign  www.votes-for-expat-brits.com

Unfair Financial Burden for retired Britons in France

To go to the INDEX and start - click here

Other 'posts' on this blog deal with the substance of this.
Consider an elderly couple who retired to France before 1998. We will call them Mr and Mrs. Briton.  He is now over 80  and was a teacher.

1. His teacher's pension is (in euros) 24,000 euros, which is entirely taxed in Britain. This tax is 2627 euros (equivalent of £2285.5).  This sum would be zero if this income (as a sole income) were taxed in France. see note a/.

2. Because they retired to France before the institution of the Winter Fuel Payment they do not receive it.  This amounts to £300 at present for the over 80s = 344 euros

3. They need to find 1500 euros minimum for top-up health insurance. EU law decreees that the UK is the Competent State to carry the costs of their health care. But it does not happen.

How much do they lose out taking on board EU law?

The total they appear miss out on and/or have to find is 2627+344+1500 = 4471 euros. But note later- we need to take in their other pension - The State Retirement Pension, which is their only other income. Although taxable in France it is too little to attract more tax.

If EU law on health costs as it appears to be written was observed  they would have no health costs. see note b/.

IF all their income were taxed in France then one has to include their joint State retirement pension (11640 euros) in the calculations of taxable income in France. The French Tax bill would be  1812 euros.  This is 815 euros less than their existing UK tax bill.  The amount they lose out on then has to be recalculated as   815+344+1500 = 2659 euros

So, if all were really fair for this elderly British couple they would have an extra 2659 euros a year to enjoy life.

When they retired the exchange rate between £ and France was very favourable and these financial matters were not particularly important. Since then the £ has collapsed and they are watching the centimes.

Notes .. a. link to posting  .  'Taxation- in-France-& -UK'  ........................
          b. see EU Regulation 883/2004 Article 24. Link 'Health Costs Legal Position'

HEALTH MATTERS - Monthly Comment April 2010

A further item has been posted on this subject - Refer to the INDEX for developments.
 
BACKGROUND

Few expatriate OAPs in Europe realise that they enjoy health-care support because of EU agreements and THAT THE FINANCE COMES FROM THE UK – in effect from the NHS.

The EU Regulations (essentially 1408/1971 and 883/2004) state that the costs of health care for the Old Age Pensioner is the responsibility of the State to whom the OAP has paid his/her social security contributions. That State will pay your Old Age Pension and support your old age health care! This State is defined as the ‘competent State’ - For almost all expatriate elderly Britons this competent State is The United Kingdom.

Clearly it must be understood that if you have not paid into the Social Security regime of France (or other country) because you had not lived there in an employed category, there is no logical reason why you should be supported under the health-care system of France (or other country)! Only an EU agreement gives you this support. And someone must pay for it! Let us look more closely….

A quote from Article 24 of EU Regulation 883/2004….

“1. A person who receives a pension or pensions under the legislation of one or more Member States and who is not entitled to benefits in kind under the legislation of the Member State of residence shall nevertheless receive such benefits for himself and the members of his family, insofar as he would be entitled thereto under the legislation of the Member State or of at least one of the Member States competent in respect of his pensions, if he resided in that Member State. The benefits in kind shall be provided at the expense of the institution referred to in paragraph 2 by the institution of the place of residence, as though the person concerned were entitled to a pension and benefits in kind under the legislation of that Member State.”

The institution referred to in the following paragraph 2 is indicated as the “competent institution of the Member State” in effect - the NHS. In other words: - you should be treated by the health system of France (your place of residence) and charged to the institution of your competent State (the UK).

Read the highlighted parts again --- It says that you will receive benefits insofar as you would be entitled under the legislation of the competent State (the UK) as if you resided in that Member State (the UK).

That says that if you get 100% cover in the UK you should also get it in France! Or anywhere else in the EEA.

Under the above Article it would seem that we have two situations – firstly The State of Residence is obliged to treat you as though you come under the social care legislation of that State, but the competent State should also ensure that you have the benefits as though you were resident in the competent State. The only way to resolve this is in France to be treated as a French citizen would be (which one is), but that the full cost is picked up by the UK. I have an uncomfortable feeling that the UK is being charged by France at somewhere about the full cost and that the British OAP resident in France is being asked to find up to 30% of the cost as well - via a ‘mutuelle’ or his pocket! This 30% (approx) should not be necessary.

To the current date every EEA country has transferred grants between themselves of a sum of money to cover the health costs of their expatriate OAPs. (Regulation 574/1972 Article 95 – now 38 years old and before the time of electronic data  transmission! And before the UK joined the EU in 1973!) The calculation of these grants are somewhat convoluted.

Two supplementary articles are in consequence appended to this introduction.

Click on a title to view.

1. The matter of the European Health Insurance Card [EHIC]

A matter of confusion?

2. The costing of the health support of the expatriate OAP in Europe.
This item is updated with additional statistics from the Dept of Health London April 14th. 2010
Is the UK and the British Citizen being ripped off by France? The charge to the UK for pensioners in France is 192% higher than for pensioners in Italy and healthcare in Italy is totally free. This link also links in turn to all the relevant legal extracts. It also indicates the way forward.  

You may well find these items interesting reading.

The whole sorry affair indicates that we need a Minister for the European Expatriate in Westminster. After the general election it will be necessary to write to the Minister of Health.  If necessary a draft letter will be published next month.  In the meanwhile... You may wish to report this matter to your MP or send a petition to the EU Commission.  For  ideas contact me DEBOUT!  click
In the meanwhile if you live in France you  must follow the French law and pay up!