Expats

This month we feature an interesting article "How to Stop the Value of your Pension from Decreasing!"

Many Brits living overseas unknowingly lose money through the process of receiving their monthly pension payment. Often, a pension is paid in sterling at a UK (or off-shore) bank and then exchanged to Euros or other currencies and sent to the pension holders overseas bank account. Alternatively, pensions are paid into a Sterling account overseas and then exchanged into Euros or other currencies for use.

During the standard process of using the banking system, money saving options are overlooked, unnecessary charges are made and poor currency conversion rates are applied. In the end, the pension holder loses around £50 - £100 unnecessarily on every transfer. In some cases, the pension holder can loose much more. The solution is to use an international payment specialist rather than a bank.

The money saving option – fix the currency exchange rate.
Mr Benson retired to malta at the end of 2007. In January 2008, he called a payment specialist, explained that his monthly pension amounted to £1,134 and wanted to know what options were available. After a chat with a specialist, he decided to set up a regular payment with a fixed exchange rate for 1.33 for the full year. In January, he received €1,508.22 in malta and continued to do so every month for the full year. To set up this facility, Mr Benson set a standing order from his bank to the payment specialist and paid a small administration fee. 

If Mr Benson decided against fixing a currency exchange rate, his monthly amount would have decreased with the weakening sterling rate and by December his payment would have amounted to €1190.70 - a 21% drop in value. Banks often fail to offer or even mention the option of fixing a currency exchange rate for use in the future.

Avoid Charges. 
Banks in the UK and definitely in malta seem to charge for anything they can get away with. When working with an international payment specialist they’ll help to reduce and often eliminate most bank sending and receiving charges. Why pay a fee if you don’t have to?

Get good exchange rates. 
International payment specialists offer exchange rates that are guaranteed to beat the rates provided by the bank. Banks often set their rates to buy and sell currency in the morning – when you visit a branch, you’ll see them hanging on the wall. Specialists, however, don’t set the rates but call into the market floor to get you the best rate possible. 

Watching the value of your pension depreciate can be soul-destroying. Receiving €900 rather than €950 can also cause anxiety. Both situations can be avoided when discussing matters with an international payment specialist.

To move money overseas or repatriate back to the UK, check out: 
www.smartcurrencyexchange.com/250.htm