Pusser's Pension abroad

[Geoff_Wessex]

Anybody on the Forum on a pussers pension and living abroad?

I'm planning on doing the same but having worked out whether to have it sent direct to a foreign bank (transfer charges?) or just feed it into a UK bank and move it at longer intervals. I understand the tax is the same whatever happens - and I assume all the 'allowances' are applied. I'm soon up to the age 55 mark so I'm not even sure how much it will be.

Would like to hear any recommendations.

 

[Lingyai]

Don't know where you are planning to go but there is always the chance you could lose money from a dodgy foreign bank, but if it is Europe should be OK. I have found the best and cheapest way is to get a bank account with no charges for overseas ATM withdrawls (Nationwide flex account). Arm yourself with this and internet banking and you are laughing kitbags. If like me you like a bit of safety, just keep your main account with everything as normal and make a standing order to the other account, that way you can control everything through the internet and in the event of a card loss or problem you can still use the other card.

 

[Nutty]

Anybody on the Forum on a pussers pension and living abroad?

I'm planning on doing the same but having worked out whether to have it sent direct to a foreign bank (transfer charges?) or just feed it into a UK bank and move it at longer intervals. I understand the tax is the same whatever happens - and I assume all the 'allowances' are applied. I'm soon up to the age 55 mark so I'm not even sure how much it will be.

Would like to hear any recommendations.

Geoff

I am informed that Goverment pensions can be paid directly into an overseas account with no charges at the official exchange rate in force on the day of transfer. If Pusser will not do that then as previously suggested get a Nationwide Flexi account or as I do. Run my UK Bank account (HSBC) by internet then I transfer cash over in £5000 lumps as I need it and when the exchange rate if favourable. I use a foreign currency exchange company, www.foreignpayments.co.uk , I phone, they give me a rate of 1% below the official exchange rate, I move cash to them they move it to Spain at no other cost. Its the cheapest way I have found unless someone knows different.

You will need a Canuck account if only to pay utility bills, have any local earnt monies paid into etc. Beware of double taxation. You of course have to allow time to get cash fron UK Bank to local bank when purchasing a large item, say motor vehicle, drawing £10,000 from a hole in the wall (ATM) takes 50 days

Nutty

PS there are other cash transfer companies that is the one I use. Most seem the same.

 

[Geoff_Wessex]

Good advice to start with, thanks Nutty and Lingyai. It would be good if the 'Paymaster' could transfer money abroad monthly without the charges, but if they don't I like the option of the 'occasional', say 6-monthly, transfer. That's the second time I've heard about the Nationwide a/c too - worth a look.
And, yes, it's Canada, so I'm not too worried about a dodgy foreign bank.
I'll be putting my main (house sale) cash into a Canuck bank and topping it up with the pension.

 

[PartTimer]

Beware of double taxation.

From what I've seen in discussions on ARRSE, this is a problem for Amry types whove retired in Germany. The UK taxman takes their slive, then the Germans do too. This is being contested by several of them in courts at the moment but will take years. Many countries tax residents on foreign earnings, and if you're not careful your pension may get caught by that. Check bi-lateral taxation agreements. You may find putting it into a trust here in the UK, then transferring it into a trust in Canada is the most cost effective solution (especially for the lump sum from your house sale).

 

[the_matelot]

Slight tangent but a good tip for matelots on foreign run ashores.

Nationwide flex account-the only one on the high street who won't charge you for taking money out abroad.

I've got my normal bank account and I deposit money in my nationwide account for foreign run ashores or holidays.

Of course, you could cash a cheque in the ships office....

 

[FlagWagger]

And, yes, it's Canada, so I'm not too worried about a dodgy foreign bank.
I'll be putting my main (house sale) cash into a Canuck bank and topping it up with the pension.

I'm currently in the process of opening a Canuck a/c from here in the UK and have found the HSBC to be helpful. We've now got a UK HSBC a/c (opened last month) and on this basis we can get some element of Canuck banking set up before we arrive there in July. We'll be looking at running the two accounts for the foreseeable future since we expect a number of Sterling transactions for a few years to come. Although both accounts are held at banks within the same group there are still charges for international transfers, however these are cheaper than would otherwise be levied - one main advanatage is that both the UK and Canuck accounts can be managed over the internet, so transfers between them will be under my control rather than having an arbitrary payment schedule incurring monthly charges.

 

[Simple_Sailor]

I am retired (well retired ) ex dark blue living in Spain. My partner is ex WRAF , and we are both existing on ex Serivce pensions. Paymaster WILL pay a pension directly into any Euro bank account without transfer charges, giving the rate of exchange on the day of transfer (so it does vary a little).

Her indoors has her money transferred each month to Spain, but mine is paid into a UK account, where there is a much better interest rate, and I 'bulk' transfer as and when required.

All UK 'Government' pensions are taxed at source in UK for us expats in Spain, so the Spanish taxman is not intertested in them. This is a bilateral agreement between Spain and UK, and is in addition the the European Dual Taxation Agreement.

Canada is obviously very different :? , but this might be of interest to those considering retirement abroad, but not quite as far away :!:

Jock

This is my first post, a virgin, please be gentle with me!

 

[Wonderfulandfairlyuniqe]

Canada does have a bi-lateral agreement with the UK so you can get a pension paid into a canuk account and the Paymaster will also credit the pension with the RPI increases each year. You will not be double taxed on it either. They also do this for Australia and New Zealand. If anyone is planning to go anywhere else then htey should ring AFPAA in Glasgow and get a definative answer. I do know of people in countries where their pension has not been increased inline with the rate of inflation because the UK doesn't have and agreement with them.

 

[Jimmy_Green]

Will the Paymaster pay the pension into an Aus bank account without transfer charges?

 

[Lingyai]

Malaysia offering some good incentives to relocate now
Malaysia 2nd home programme

 

[pingbosun]

G'day Geoff.

I've been on one in Australia for 35 years mate and have had no trouble.

If you email me privately I will tell you what I think.

pingbosun.

 

[Harry1]

A lot depends on where you are relocating to. If in the EC then you are taxed at UK rate and the net balance is put in your account. If you are going to say Cyprus then you can opt to have your Gross amount paid and pay local tax, which is a very favourable option. Your Navy pension will remain index linked but if you have a State pension then it is pegged at the rate it was when you emigrated unless you come back for 6 months and a day. It is quite a minefield and I will have another look at my books (sad b****** that I am) and will try and give you some more info.

Harry

 

[whitemouse]

You have to get your pension first..!! I applied for mine 7 weeks ago to the afpaa (Army) office in Glasgow and still havent had the courstey of an answer despite two emails


(why are all these offices in Glasgow - and do we get them back when they devolve??)

 

[Polycell]

I live in france and on a Pussers pension. It gets taxed at source and I get the yearly increments as per those living in Blighty. But I believe those living in Auss do not get the increments.
Oh and my Pensh gets paid directly into my french bank account, Credit Agricole, with no penalty payment ie no transfer charges etc.

 

[Richie]

Ditto - "Polycell" having no problem at all, working very well

 

[buffersmate]

Anybody on the Forum on a pussers pension and living abroad?

I'm planning on doing the same but having worked out whether to have it sent direct to a foreign bank (transfer charges?) or just feed it into a UK bank and move it at longer intervals. I understand the tax is the same whatever happens - and I assume all the 'allowances' are applied. I'm soon up to the age 55 mark so I'm not even sure how much it will be.

Would like to hear any recommendations.

Are you going to a country with a Double Taxation Agreement with the UK? If so you will be taxed in Britain. You might be further taxed in the country you are settling in. Avoid this by having your pension paid into Royal Bank of Scotland in Gibraltar. They will fund your local bank account with sufficient amounts to pay the bills without alerting the tax authorities in your chosen country

 

[Richie]

Bit naughty that "Buffersmate", only problem is, in France you must declare all income world wide as it affects your "carte d'assurance maladie" (your life line to health care). The Double Taxation agreement works in your favour as the taxation threshold in Frnce is higher.

 

[buffersmate]

Bit naughty that "Buffersmate", only problem is, in France you must declare all income world wide as it affects your "carte d'assurance maladie" (your life line to health care). The Double Taxation agreement works in your favour as the taxation threshold in Frnce is higher.

But nice nevertheless.Receiving pensions as I do from three countries plus the uk Each of those countries requiiring me to declare my world-wide income, as they do, would plunge me into the slough of despond.
I don't tell any of them and worry not that they will find out. After 21 years they haven't!!

 

[pingbosun]

G'day mate.

I'm in OZ and we get all the increments that the guys living in the UK get, I get it payed straight into my bank account and have never had any trouble getting it in 36 years out her.

That said however, if you intend to work where ere you go, and when you retire you then only get a part pension, because you are getting your British one. That's in OZ anyway.

My mate out here is a Yank and when he came here he gets a Pilots pension from the US Army Air Force, Superannuation from another one, from a Big Construction company, as he worked for this US company in Bougainville and Malaya, and some of the islands after the war.

He had it well though out though, he gets both of his paid into his bank account in the USA (Texas) could even be two accounts knowing him lol.

He now gets a full pension in Australia and his wife does, she is Australian, so once a year he flies back to the states to collect his money from his accounts in the USA pays whatever tax is owing, then he brings the money back into Australia that way, so that it doesn't effect either his wife's pension or his own Australian one.

When he did come out here originally there were no computers, so it would have been easy to work it then, doing it now though, I'm not sure if they would find out, they would when you apply for your old age pension!! but my mate still hasn't been found out. So if you are feeling lucky, it could be worth a try :threaten: :whew:
regards pingbosun