It looks like the British Basic State Pension (BSP) for 2012-2013 starting next April will rise by 5.2 per cent.
The annual increase in state pension is now calculated in line with the rise in the Consumer Price Index (CPI) based on the month of September in the preceding year. The official CPI, recognised by the UK Government for September 2011 is 5.2 per cent.
The UK’s basic state pension from April 2012 is therefore likely to be in the region of £107.46 (£102.15 x 5.2 per cent).
The pension rates for the following year are normally announced by H M Government in the period before Christmas.
……or perhaps not. There is a suggestion now that the Government will not use the September figure, but use an average for the year, around 4%. This may not sound a lot, but should save the Gov 1.5 billion on pensions alone. This is on top of the scam from moving to CPI from the higher figure of RPI, a move which is being challenged in the courts by some Trade Unions (inc my own) as being an abuse of power.
Still, have to keep that triple AAA rating intact!
I don’t think the situation for UK pensioners would change at all as Greece would be leaving the Euro, not the European Union. Whatever the situation if you wanted you could have your UK State Pension paid into a Sterling or Euro account with a bank in Greece (Bank of Cyprus is one bank offering both) if you don’t fancy the drachma.
There is no suggestion that Greece is leaving the European Union. It is however in danger of defaulting on loans and leaving the Euro-zone, thus in doing so being forced to revert to its pre-EU currency – drachma. Nevertheless even if Greece left the EU, UK pension arrangements would still remain in force, since they are Government-to-government arrangements. Of course if Greece terminates its arrangements e.g. UK-Australia in 2001/2 – then yes your pension would be frozen….