State pension paid in euros

retiredinfrance

Does anyone know how the exchange rate in euros for the state pension is calculated? Is it  a mid market rate or is there a commission percentage fee? Can a Teachers Pension also be paid into a EU bank in euros. We are trying to work out easy and preferably cheap ways of dealing with Brexit as our UK bank is closing our accounts and it is proving difficult to open new ones. Thanks for all help and advice.

JGB1955

See Payments | Once retired | FAQs | Teachers' Pensions and State Pension if you retire abroad - GOV.UK (www.gov.uk)

retiredinfrance

Thanks for your reply. However, the government wording doesn't make it crystal clear who does the conversion . It says the conversion is made before the amount reaches the pensioner's account is it the government or the EU bank? If it's the EU bank then it will be  a costly rate. The use of the passive by the government is not good. Thanks anyway - every bit of information helps.

squirrelpie

Can't answer the question but if you make a euro SEPA payment from a UK account then the conversion is done by the sending bank. Dunno if the government uses the same payment mechanism.

Brynsam

retiredinfrance said:

Does anyone know how the exchange rate in euros for the state pension is calculated? Is it  a mid market rate or is there a commission percentage fee? Can a Teachers Pension also be paid into a EU bank in euros. We are trying to work out easy and preferably cheap ways of dealing with Brexit as our UK bank is closing our accounts and it is proving difficult to open new ones. Thanks for all help and advice.

Have you considered the possibility of opening a UK savings account (with a bank/building society/other financial institution) which would allow you to transfer your funds at a time of your choosing?

retiredinfrance

Yes,Brynsam, that is our fallback position . We would then get all pensions moved into it. Actually , since another person, that is yourself has suggested it it might be the way to go if we don't get a current account as we don't want an overdraft nor chequebooks. Given the banks closing lots of accounts I want to avoid having all our eggs in one basket. We have a joint account with the Halifax and the Nationwide one we have won t allow any more money paid in. Thanks again.

[Deleted User]

HSBC allows foreign residents to set up current accounts in the UK.

nigelbb

By all accounts the UK government sends such large amounts of money abroad by way of pension payments that they get the best possible exchange rate & that the simplest & best option for pensioners abroad is to have payments direct into their overseas bank account.

Those who promote having the pension paid into a UK bank account then transferring when exchange rates are favourable need to consider that they will never get such a good exchange rate as the British government & that rates go  down as well as up. If they are so confident of predicting exchange rate movements then perhaps they should consider a post retirement career in currency speculation?

JohnWinder

Transferwise? The fee, GBP to EU seems to be 0.0375% on the mid-market rate. Versus HM Treasury unknown 'cost'.

https://transferwise.com/fb/gbp-eur

retiredinfrance

Thanks Mordko, Nigelbb and Johnwinder. Interesting point  and worth considering. We are currently in the throes of opening HSBC current accounts but making little or no progress. I had a look at building societies to see about savings accounts but no progress. The new online banks all seem so far to be UK residents only.Patience is needed. 

NottinghamKnight

retiredinfrance said:

Thanks Mordko, Nigelbb and Johnwinder. Interesting point  and worth considering. We are currently in the throes of opening HSBC current accounts but making little or no progress. I had a look at building societies to see about savings accounts but no progress. The new online banks all seem so far to be UK residents only.Patience is needed. 

Hsbc are notoriously slow, several weeks longer than any similar providers in my experience so not unexpected and don't take it that there are necessarily any issues.