Yesterday, I tweeted the following, occasioned by the British pound's nosedive to something close to parity with the peso
Well, if like me you get a UK age pension, you already get a bum deal as there's no CPI indexing - this just puts the cherry on the cake. If you are in the UK write to your MP and tell them this is crap— doug moncur (@moncur_d) September 26, 2022
Pound slumps to all-time low against dollar https://t.co/lHJQm9aScB
The way the UK treats pensioners overseas is not particularly fair.
Your pension is paid in UK pounds, which means that its value varies with the exchange rate, meaning that what you end up with is different every month. Perfectly understandable.
Crucially though, if you live in Australia, and some other countries, but not if you live in an EU member state, there is no CPI indexing.
If the pension was indexed, you would expect it to increase in line with the cost of living, and given that the UK imports a lot of what it consumes this would reflect any fall in the exchange rate.
If it's not indexed, you pension is worth less, which is the situation in Australia.
Fortunately, I am well enough off to be able to cope with this. Equally if you get an Australian old age pension - which is means tested - Centrelink, the body which administers pensions applies some arcane and impenetrable algorithm to adjust for this
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