You’ve worked hard to pay for your dream retirement in France, now’s the time to enjoy that relaxed way of life you’ve planned. If however, your ties to the UK are not entirely cut, and you have a pension being paid into a bank account in the UK – then you should consider ways to make your pension go further in France.
Each expat’s circumstances will differ in terms of what they want to do or need to do with a monthly pension. Some may well be in the fortunate position that they have deposited a bulk amount of cash in their French account and don’t need to draw on their UK pension payments on anything more than an infrequent basis. Others (perhaps the majority in reality) will be reliant on those pension payments to live on.
For the specifics of how best to manage the pension itself, the advice of a reputable, qualified adviser should fully explain such things as QROPS (Qualifying Recognised Overseas Pension Schemes) and the process and implications of transferring a UK pension.
When it comes to moving funds from a UK account into a French account many people will still make the currency transfer using their bank. But, this may not be the best available option as banks can charge a fee each time a transfer is made and may not offer the best available exchange rate from pounds to euros.
An alternative option is to speak with an authorised currency broker to see how they can save you money – it costs nothing to ask.
Why speak with a currency broker?
Currency brokers transfer your funds in much the same way as a bank, but will most likely provide a better rate of exchange combined with a more personal service. They can also offer different options and solutions to meet differing currency requirements.
For example, banks will typically only offer the ‘spot’ rate which is the rate available should you wish to carry out a currency transfer at the time of asking. Currency brokers will talk you through options such as ‘forwards’ which may suit your needs better as well as provide an improved rate of return and add some protection from market fluctuations. The ‘spot’ option may well be the best solution for an individual’s needs and going through a broker should provide more euros for your pounds due to the improved exchange rate and removal of transfer fees.
Making savings and getting a more personal service make using a foreign currency broker an attractive option, and as it doesn’t cost you anything to check, you have nothing to lose.
Most currency brokers have the ability to set you up with a regular overseas transfer plan which means you don’t need to worry about organising it each month.
If you are in the position where you’re flexible about when you receive the euros some brokers hold a higher level of authorisation as e-money institutions and can hold client funds indefinitely, which provides a better opportunity to get a more favourable rate of exchange.
Whatever your personal pension situation is, make sure you get the most from your money so you can relax and enjoy life more.
The Good Life France uses Universal Partners FX. Registration is easy, secure and is a one time set up. After that you just log on and manage your currency transfers when you want to but there’s always someone on the end of the line to talk to you when you need it.