How to save money when transferring a pension overseas
Retiring abroad is a long-cherished dream for many people, with the idea of spending those golden years surrounded by sun and sandy beaches proving particularly alluring.
Popular retirement locations among expats include Australia, Canada, Spain, France, New Zealand and the US, with each nation offering something different in terms of pace of life, cost of living, landscape and opportunities.
However, wherever they chose to relocate, very few expats find themselves in the fortunate position where they can support themselves without the financial backing of a pension.
As pension payments are rarely sizable in nature, getting the most for your money should be a priority, and by looking into your pension transfer options it’s possible to save a considerable amount.
Many retired expats use their banks to transfer their pension payments from the currency of their home nation to the currency of their adopted nation, and in doing so they run the risk of losing out on hundreds of pounds every year.
Banks typically charge a transfer fee of anywhere from £10 – £40 per transaction, which over the course of 12 months could amount to £480 even before you factor in the additional commission costs.
Furthermore, your bank is unlikely to secure you the most competitive exchange rate.
As rates can fluctuate by as much as 10 per cent in a matter of weeks, achieving the best rate possible can make a big difference to how many Euros you get for your Pounds – or how many Aussie Dollars you get for your Euros.
By doing a bit of research and using a reputable, FCA authorised currency broker to manage your pension payments you could be far better off.
Most currency brokers don’t charge transfer fees or commission and spend their time monitoring market movements and currency trends for you so you have all the information you need to make your transaction at the most lucrative time.
With a currency broker you can also set up a regular overseas payment plan, so your pension is transferred swiftly, securely and automatically on a day of your choosing – eliminating all the stress and leaving you with more money to spend on living your expat life to the fullest.