Thai-hard life: Brit’s retirement dream sours over frozen pension
A British expat who dreamed of living out his golden years under the Thai sun says he’s been left counting every baht after his UK state pension was frozen and he reckons it’s “immoral” he’s been abandoned by his own country.
Christopher Lee swapped Wrexham for Thailand back in 2010, lured by sizzling sunshine, spicy street food and a slower pace of life.
But 15 years on, the retired banker says life’s becoming a real struggle as his UK state pension remains locked at the same rate it was when he first touched down while back home, payments have shot up by 80%.
“I’d love to visit friends and family back in Wales. But holidays are out of the question now. Most luxuries in life have gone.”
The 70 year old, who spent over 20 years working at a Wrexham bank, revealed he gets just £137 (6,150 baht) a week, thanks only to a top-up from the old State Earnings-Related Pension Scheme (SERPS). Without it, he’d be scraping by on £97.65 (4,400 baht).
Today, Brits back home on the basic state pension pocket £176.45 (7,880 baht) a week, while those on the new full pension enjoy £230.25 (10,280 baht). But because Lee lives in Thailand, one of dozens of countries on a ‘frozen pensions‘ blacklist, he’s stuck.
Over 450,000 British pensioners in places like Thailand, Australia, Canada, South Africa and New Zealand are trapped in the same boat, with their pensions losing value year after year as inflation bites.
Speaking with a clear sense of frustration, Lee slammed the policy as “unjust” and “immoral,” adding:
“The extra cash would be most useful as the value of our money decreases every year. Life is so much harder now, so I’d really like to see this decision reversed.”
He added that while he receives a small private pension as well, it’s not enough to live the life he once dreamed of.
It’s a bitter pill to swallow for many British expats who feel they’ve been cut adrift. Only recently, pensioner groups in Thailand have campaigned for change, warning that more retirees are being pushed into poverty, just like in The Thaiger‘s reports about Brits struggling in Pattaya and Chiang Mai due to the frozen pension scandal.
And there’s little hope on the horizon. Successive UK governments have refused to budge on the policy, claiming that uprating payments abroad would cost nearly £1 billion a year, the iPaper reported.
Official stats from the Department for Work and Pensions (DWP) last summer estimated it would cost £940 million to unfreeze all affected pensions in 2024-25, a DWP spokesperson said.
“We understand people move abroad for many reasons, and we provide clear information on how this can impact their finances in retirement, with the policy on the uprating of the UK state pension for recipients living overseas a longstanding one.”
But Lee insists that’s not good enough.
“Successive governments have all given the same answer when asked about unfreezing expats’ frozen pensions and it isn’t the answer we want.
“It is time for this to change. Why should it matter where we live? We paid our contributions so deserve an annual increment like all other pensioners.”
For now, Lee and hundreds of thousands like him face a future of rising bills, tightening budgets and a retirement far colder than the Thai sunshine ever was.
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