British pensioners living abroad could be losing out on a whopping £2 million each year by using banks to transfer their pension payments from the UK to their adopted homeland…
With many struggling to get by on a British pension, the last thing pensioners should be spending their money on is bank charges.
But that is exactly where £2 million worth of British pension cash is going each year.
Foreign exchange specialist Moneycorp has found that, whilst high street banks vary in the amount of money they charge for sending money abroad on a regular basis, some of them charge up to £20 for each international transfer.
Thus, by regularly transferring their pension payments abroad, expat pensioners are spending far more than necessary.
Marc Morley-Freer, Commercial Director of Moneycorp’s Private Clients Department, said, “Our analysis shows that many high street banks are providing poor value to retired people living overseas.
“Falling house prices and higher costs of living may already be taking their toll.
“I doubt retired people are happy about giving such significant proportions of their pension payments to banks in exchange rate margins and transfer fees, especially as the Pound’s recent fall against most major currencies may be making it difficult for pensioners living abroad to make ends meet.
“To get the very best deals on foreign exchange we advise people to shop around.
“Foreign exchange specialists generally give the most favourable exchange rates and charge significantly lower transfer fees,†added Mr Morley-Freer.
What about the Euro?
Back in January 2007, couples who receive the basic state pension of £628 a month used to get €961 when converting it. Now, due to a weakened exchange rate, that money only translates into €766.
As the currency markets are currently so volatile, Britons living in Europe and receiving their pensions in pounds are being hit hard.
Currency specialist HiFix found that each month the average retired person living abroad pays anything between £10 and £30 in transfer fees and other bank charges to have their pension paid into their bank.
Of the 1,080,000 Britons who have a state pension paid to them abroad, the largest proportion are being paid into Australian bank accounts.
Canada follows in second place, followed by the USA, Republic of Ireland and Spain.
For more information on international money and the market in general, please visit http://www.themovechannel.com/money/
-ENDS-
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