Transferring your mortgage payment, or pension, abroad need not cost you a fortune every month.
If you use your bank to make a mortgage payment, or pension transfer, overseas, it´s likely that you will be much more than you need to in charges, commissions and the currency exchange rate.
As more and more people have chosen to retire overseas, the banking system is set to gain from this migration. However, whether you have a state pension or a private pension scheme, the taxation treatment of your money may be different depending on the arrangement that the UK tax office has with your new homeland. Relying on conversations with friends, who have already moved abroad, is useful. But, take great care to get the right information from the tax office.
If you are a UK resident and choose to retire in the United States, you will currently benefit from annual increases in your state pension. If you choose to retire to places like South Africa, New Zealand or Canada, your pension is likely to remain at the level that it was when you moved abroad.
Variations in tax law may mean that you may also have to pay more tax, or possibly pay tax in both Countries as the money originates in the UK and you are spending it abroad.
Before moving abroad, I suggest you have a word with a Tax specialist in Pensions. They could save you a great deal of money.
Currency Exchange.
Now that you have established what you are likely to receive from your pension while living overseas, it is worth discussing your plans with a currency broker. Currency Exchange dealers can save you a great deal of money when you are making regular monthly payments.
Ratheer than rely on the good nature of your originating bank to keep the costs down and to give you a great rate of exchange, why not go to a currency conversion specialist like fx-foreignexchange, who have a simple system for making these monthly transfers?
Because it´s simple, it´s cheap! You instruct your bank to transfer the monthly pension payment to fx-foreignexchange. At the end of the month, the presiding rate of exchange is applied to the pension amount and the money is converted into your destination currency. The money is then transferred to the bank account in your new home country without commission or transfer charges. Often, if fx-foreignexchange have a bank account in your destination country, there won´t be any receiving charges either.
It´s efficient and cost-effective.
The value of your source currency, against the exchanged currency, can be fixed for a given period ahead. If you don’t wish to transfer your money now, you can book the rate of exchange now, for a date ahead.
To discuss how best to make a currency exchange into euros at the best rate, talk to a foreign currency exchange specialist. visit fx-foreignexchange, or call 01480 458400.
