Pensions! The Serious Bit!

[Jack Peterson]

How many years have you been in Spain Jack? Working? You may find that you have to draw your pension through Spain.

This is where things get Complicated. I have been Working in Spain for 11 years. For Nationality and Salary Structures I am based in the GIBRALTAR Office and I am sure you will Understand the problem this can cause. However you are Right, in that as I Actually am A spanish Resident, I have to Apply Directly in Spain. This is Why am starting all this A year early.Jack P.

[Jack Peterson]

I have heard that you can open a £ account here in the hills and then take it out when the exchange rate is good for you. I cannot remember where I heard it from or all the details. Maybe it was in Cebu britclub try that jackKevin

As time goes on now, I will try and contact as many Brits as I can, to find the best way to have it. Mind, I guess it is Not just Brits but any member recieving a pension from their Own Country, have had to make the decision, of How they receive a pension. ( if there is an Option as with the UK pensions) Once I retire I am not sure if the process could be reversed once in Place, so Much Enquiring and thinking I feel. To me, paid into a PI Bank, seems the easiest way, my concern would it be safe and beneficial.Jack P.

[Ashanti]

Jack Although, I am not a pensioner yet but if you don’t mind id like to share you my thoughts.In the first place I don’t seem to remember if there was a reciprocal agreement between UK and PI. Other western countries yes, PI – NO.Second, I will not trust a PI bank with the bulk of my money – DTD expenses fine but for the rest, id rather borne the extra expense and hassles than having all my monies in PI bank. But you can minimise that by drawing a budget. If you have a budget, you would know exactly how much to transfer each month from UK account to a PI account. It is also worth bearing in mind that in PI the exchange rate for the pound is rather volatile compared to the dollar. And if you are transferring large sums, the difference in the exchange rate could be handy.Third, if you are going to live permanently in PI – you actually need to inform the pensions department. The other thing to consider is that if you live overseas for more than 1x year you are not entitled to an automatic pension increment.Fourth, I really think you should contact the HMRC – Pension Dept as to your situation ASAP because UK pension rules changed in April 2011 and there is another changed on October 2012. As your work/pension arrangement is not straightforward – it is wise to get it straight in your head direct from the horse mouth before you even consider of having your pension paid in UK or PI banks.Ashanti

[Jack Peterson]

Jack Although, I am not a pensioner yet but if you don’t mind id like to share you my thoughts.In the first place I don’t seem to remember if there was a reciprocal agreement between UK and PI. Other western countries yes, PI – NO.Second, I will not trust a PI bank with the bulk of my money – DTD expenses fine but for the rest, id rather borne the extra expense and hassles than having all my monies in PI bank. But you can minimise that by drawing a budget. If you have a budget, you would know exactly how much to transfer each month from UK account to a PI account. It is also worth bearing in mind that in PI the exchange rate for the pound is rather volatile compared to the dollar. And if you are transferring large sums, the difference in the exchange rate could be handy.Third, if you are going to live permanently in PI – you actually need to inform the pensions department. The other thing to consider is that if you live overseas for more than 1x year you are not entitled to an automatic pension increment.Fourth, I really think you should contact the HMRC – Pension Dept as to your situation ASAP because UK pension rules changed in April 2011 and there is another changed on October 2012. As your work/pension arrangement is not straightforward – it is wise to get it straight in your head direct from the horse mouth before you even consider of having your pension paid in UK or PI banks.Ashanti

Hi, Thank you for the Post, Much to ponder on, I will write some more on this at the weekend, I need to Digest the Budget Implications now and then I will have a Clearer picture. Of course I am already an Absent national, so the Situation is already a little Complicated but is getting Clearer every day.Jack P. :thumbsup:

[Malcolm Graham]

UK has an agreement with the PI see http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_10026714 so you get the increases. One of the few countries you can get it.It has no medical agreement though.

[Jack Peterson]

UK has an agreement with the PI see http://www.direct.go...ion/DG_10026714 so you get the increases. One of the few countries you can get it.It has no medical agreement though.

Thank You Malcolm, May I say Welcome and nice to hear from you, This Information saves me trawling the net to find the Web Site, I had the Confirmation last week that the Agreement was Firmly in Place, so I will just make a few more Enquires and then I have to Make my Mind up what I will do. What ever, I will not make the Application in Spain as there is no Agreement, No Increases. Although they too, are full EEC members they do not recognise any pension Agreement with the UK. All they will do is pay the set Amount from day one until I POP off.Azon would have to go all through the silly Red tape to claim A widows pension. The UK/PI agreement will be a lot easier to deal with.The next Hurdle will be, Where I want it paid to.@ Anyone!I have read before and even on this Topic, People do not trust the banks in the PI, for this type of situation.Can I ask why this could be?Has any one had a problem with having a pension paid Direct into a PI bank?I am considering all options but would want the least hassle for Azon, when the day comes she has to cope with my departure. Sad to say, I will not live forever. many years yet I hope but I am a Realist.Jack P. :whistling:

[i am bob]

Jack, there are many things you will have to look at.... taxes at source, delivery costs, reliability of the banks in the Philippines, ease of access for your wife and so on... If you can answer these, that should tell you the best place to where it should be paid to...The first, tax at source... Does your government increase the amount of tax you pay on your pension if it is delivered to you (government deposit) while you are out of the country? I know my Canadian military pension will be taxed at 25% instead of the lower rates if I bring it with me. Also to look to see if it makes a difference to how long you are out of the country... I am trying to determine for myself if I can claim a residence in Canada (though I will never see it) and pay a lower rate.If you can have your government drop your pension into a Philippine bank for you, is there a cost for this? Look at what they use for conversion factors, administrative fee, if the bank will charge an administrative fee (my cousin had to pay for his deposits from Canada but I can't remember which bank he used to use), and holding times to clear. If you are thinking of using a Philippine bank, look at how good they are at not "losing" money from accounts... Many people have told me that some banks are a complete horror story while others seem like they beat out anything we may have at home...If you decide to keep your pension in your bank at home and just transfer what you want or need, what are the costs associated here? Who is cheapest for sending the money? Best conversion rates... I like WorldRemit for Canada (the least expensive and most reliable here that I have found) but a review for the same company in Great Britain was not as good (though it was an older review so it may not be applicable anymore). But can your own bank beat it and come in cheaper? Another company? One of the things I hadn't thought about before is bringing your money back out - is it hard to get your money out of the Philippines if you move back? Or is it better to leave it out and bring it in as you need it? If you leave it at home, you will need to set the Mrs up as a co-signer on your account or just open a new joint account. Of course, no matter where you set up your money for holding, she will need to have access to it somehow... Now you two have been together for a while so I'm not going to insult you and ask if you can trust her.... That's for the kids and new relationships.. But it is also a point for anyone else reading this at a later date and wondering... Anyways, you do have an easier option than many of the others on how she can access the accounts too.I"m scared to read over the book I just wrote for accuracy as I just started writing what ever came into my head and I can see it is a little long... Hehe! If you can answer all the points I dropped on you, that should give you a very good answer as to where you want your pension to go... And once you get here, I think I will definitely have to buy the first round now! :whistling:

Edited March 23, 2012 by i am bob

[ancienrocka]

I turned 65 this month, live permanently in Cebu and am in the process of trying to get my first payment made. I can't tell you if what I have done will work as my first payment is due mid April but I am optimistic.I have attached part of the letter from UK Pensions which told me how much and how I could be paid.The way I read it is that they can pay my money into my UK bank account or send me a cheque every month. It would take another month for the bank to process the cheque so this was not my first choice; but I don't have a UK bank account and without a residential address there, I didn't think I would be able to open one.On the internet I came across the fact that the Allied bank had a branch in London and after visiting a local branch decided to open a an account with them. They were very helpful and sent emails to the London branch to check if my pension could be paid in their bank in London. They even texted me back when the got answers from their UK branch - apparently they do this for many people in my situation. I was very impressed with their service, however I will only know if it works next month.

[ancienrocka]

Forgot to attach the file

[crazykopite]

Your UK pension be it service pension or state pension can be paid into any bank/building society in the world if you recieve a service pension they will get very favourable rates for you. All you have to do is inform them .