Pension News Alert

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.

FYI

What happens if Greece pulled out of the EU(god forbid) and reverted to the drachma. Would pensioners still get the annual increase and would they get the UK state pension at all?

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....