A summary of yesterday’s UK Budget and its implications for expats.
A “Robin Hood”-style pensions revolution which is expected to be announced in George Osborne’s Budget later this month, will decimate the retirement funds of young professionals, including lawyers, doctors and accountants, hitting them eight times harder than their parents’ generation.
Meanwhile, millions of people could be forced to work until they are 75, the UK Government has hinted as details of a review into the state pension age were published.
Those under the age of about 55 could be affected by the shake-up, which will consider what the state retirement age should be from April 2028. The results will be published next May.
The UK’s state pension is one of the stingiest in the world, a new report has disclosed, with only Mexico and Chile paying their pensioners less.
Data released from the Organisation for Economic Co-Operation and Development (OECD) shows that when it comes to the percentage of the average wage given in retirement, the UK pays just 38% through the state pension.
The report (click here to view) also shows that the UK is tougher than the average across the 34 OECD countries when it comes to the number of years you need to pay into the system to get the full minimum benefits.
The OECD average number of years is 26 – but for the UK from April 2016, this goes up from 30 to 35 years to qualify for the full minimum pension.