|
We are currently having a facelift,
enjoy the sneak preview
|
|
|
| Expats
| 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 Turkey 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 Turkey 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
Turkey 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 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
