Exchange Rates

[stevewool]

 

Does it really matter what the exchange is, if you are living in what ever country at that time surely your money is in that currency

 

 

Many expats here are paid a monthly pension in their previous country.  That is seldom transportable to another country so yes it really matters.  Over a long time that pension could depreciate to peanuts with a consistent drop in exchange rates.

 

Yes i understand that, I too will be paid that way one day, better start those apartments pretty quick

[Jack Peterson]

Many expats here are paid a monthly pension in their previous country.  That is seldom transportable to another country so yes it really matters.  Over a long time that pension could depreciate to peanuts with a consistent drop in exchange rates.

 

 

 Dave I will agree in part to this statement. I have on many occasions said that it all depends on the  Country, the UK and some other countries have a Social security Agreement that maintains the level of Continuity on Payments. It is Totally transportable as if I were still Living in the UK and has Increases each year, Also I have no need to return to the UK at all Ever, I I have to do is provide at 6 monthly Intervals Proof of Life, this is done by Affidavit Notarized. My pensions are transferred Monthly  to my PNB account in Pounds Sterling and I draw in Peso. Last week the rate was 68.5 peso to the Pound, PNB gave me 67.38. Not bad considering, but I do agree with you that we pensioners are at the Mercy of the Exchange rate if not Monitored. Of course this is a reciprocal agreement in that a Filipino could draw a Filipino pension in that country as if he were living in the Philippines, now this could at one stage I guess be Detrimental to the balance.

 

Many Countries are just not willing to give their pensioners the Safety net that this agreement can Give. Why I do not know but I guess it is all about keeping the Money in the Country as long as Possible.

 

Now I understand that the Scandinavian Countries are not Signed up to this Agreement and are in some Circumstance penalized by up to a Third. Australia seems to have a Pension Problem based on the same issue, Maybe you could tell us how this affects Canada and others can add their bit about the US who I understand are also not Signed up to the Agreement.

 

JP :tiphat:  

[stevewool]

 

Many expats here are paid a monthly pension in their previous country.  That is seldom transportable to another country so yes it really matters.  Over a long time that pension could depreciate to peanuts with a consistent drop in exchange rates.

 

 

 Dave I will agree in part to this statement. I have on many occasions said that it all depends on the  Country, the UK and some other countries have a Social security Agreement that maintains the level of Continuity on Payments. It is Totally transportable as if I were still Living in the UK and has Increases each year, Also I have no need to return to the UK at all Ever, I I have to do is provide at 6 monthly Intervals Proof of Life, this is done by Affidavit Notarized. My pensions are transferred Monthly  to my PNB account in Pounds Sterling and I draw in Peso. Last week the rate was 68.5 peso to the Pound, PNB gave me 67.38. Not bad considering, but I do agree with you that we pensioners are at the Mercy of the Exchange rate if not Monitored. Of course this is a reciprocal agreement in that a Filipino could draw a Filipino pension in that country as if he were living in the Philippines, now this could at one stage I guess be Detrimental to the balance.

 

Many Countries are just not willing to give their pensioners the Safety net that this agreement can Give. Why I do not know but I guess it is all about keeping the Money in the Country as long as Possible.

 

Now I understand that the Scandinavian Countries are not Signed up to this Agreement and are in some Circumstance penalized by up to a Third. Australia seems to have a Pension Problem based on the same issue, Maybe you could tell us how this affects Canada and others can add their bit about the US who I understand are also not Signed up to the Agreement.

 

JP :tiphat:  

 

Jack  you say you have to provide  6 monthly proof of life, do you then have to send this somewhere or is it all done on line

[chris49]

 

Many expats here are paid a monthly pension in their previous country.  That is seldom transportable to another country so yes it really matters.  Over a long time that pension could depreciate to peanuts with a consistent drop in exchange rates.

 

 

 Dave I will agree in part to this statement. I have on many occasions said that it all depends on the  Country, the UK and some other countries have a Social security Agreement that maintains the level of Continuity on Payments. It is Totally transportable as if I were still Living in the UK and has Increases each year, Also I have no need to return to the UK at all Ever, I I have to do is provide at 6 monthly Intervals Proof of Life, this is done by Affidavit Notarized. My pensions are transferred Monthly  to my PNB account in Pounds Sterling and I draw in Peso. Last week the rate was 68.5 peso to the Pound, PNB gave me 67.38. Not bad considering, but I do agree with you that we pensioners are at the Mercy of the Exchange rate if not Monitored. Of course this is a reciprocal agreement in that a Filipino could draw a Filipino pension in that country as if he were living in the Philippines, now this could at one stage I guess be Detrimental to the balance.

 

Many Countries are just not willing to give their pensioners the Safety net that this agreement can Give. Why I do not know but I guess it is all about keeping the Money in the Country as long as Possible.

 

Now I understand that the Scandinavian Countries are not Signed up to this Agreement and are in some Circumstance penalized by up to a Third. Australia seems to have a Pension Problem based on the same issue, Maybe you could tell us how this affects Canada and others can add their bit about the US who I understand are also not Signed up to the Agreement.

 

JP :tiphat:  

 

 

 

Australia is a bit complicated. With a 35 year working life for a full pension with an unlimited portability. Anything less than a 35 years working life eg 25 years, your pension drops after 180 days outside the country. Or like me, I have a 10 year residency plus 17 years as a kid which doesn't count. I report physically by entering the country, having the passport stamped and if you don't report they could reset the pension all the way back to zero. Little supplements, up to about $200/month are not paid outside the country.

 

There are other complications, pro and con, but those are the key points.

Edited February 14, 2015 by chris49

[Jack Peterson]

There are other complications, pro and con, but those are the key points.

 

 To me not fair to any pensioner at all but that's life I guess.

[Dave Hounddriver]

Maybe you could tell us how this affects Canada

 

Canadian pensions are taxed at 25% (if memory serves) during any time that the recipient is living in another country.  But when I mentioned transportable pensions, there are some pensions in Canada that you can withdraw the full cash value and move the entire amount to another country (if you are emigrating for example).  There are some tax consequences and investment choices may be riskier but you would then be unaffected by exchange rates.

[chris49]

 

Does it really matter what the exchange is, if you are living in what ever country at that time surely your money is in that currency

 

 

Many expats here are paid a monthly pension in their previous country.  That is seldom transportable to another country so yes it really matters.  Over a long time that pension could depreciate to peanuts with a consistent drop in exchange rates.

 

 

That's such a broad generic statement and I think it has already been commented on.

 

As for you comment that a "hard " currency pension could deteriorate to peanuts, against a "soft" currency. I think it's an exaggeration. There are cost of living raises on these pensions, and most of these pensions are awarded at age 62-65. I believe you would have to live a long long time to see it deteriorate to peanuts.

 

And you are again assuming there's only a one way movement in exchange rates...they also fluctuate up and down. I do understand that your money might realize less, but it's still good money in this economy.

 

Does it really matter what the exchange is, if you are living in what ever country at that time surely your money is in that currency

 

 

Many expats here are paid a monthly pension in their previous country.  That is seldom transportable to another country so yes it really matters.  Over a long time that pension could depreciate to peanuts with a consistent drop in exchange rates.

 

 

That's such a broad generic statement and I think it has already been commented on.

 

As for you comment that a "hard " currency pension could deteriorate to peanuts, against a "soft" currency. I think it's an exaggeration. There are cost of living raises on these pensions, and most of these pensions are awarded at age 62-65. I believe you would have to live a long long time to see it deteriorate to peanuts.

 

And you are again assuming there's only a one way movement in exchange rates...they also fluctuate up and down. I do understand that your money might realize less, but it's still good money in this economy.

[Jack Peterson]

Jack  you say you have to provide  6 monthly proof of life, do you then have to send this somewhere or is it all done on line

 

 

Yes Steve. The Originals have to be sent to the Originating payers bank, I am Lucky that all 3 of my Pensions are now paid from he same Holding bank in the UK, I have now Got it so that all 3 can Go in the same envelope, Of course they all bear different ref Numbers so they will get Hopefully to the Right Department. I do send scanned Copies of the documents so that they can see they are on there way, No real Problems so far apart from the one that seems to have caused a little upset on another Topic, but all dealt with now so that is dead for me.

 

JP :tiphat:

[stevewool]

 

Jack  you say you have to provide  6 monthly proof of life, do you then have to send this somewhere or is it all done on line

 

 

Yes Steve. The Originals have to be sent to the Originating payers bank, I am Lucky that all 3 of my Pensions are now paid from he same Holding bank in the UK, I have now Got it so that all 3 can Go in the same envelope, Of course they all bear different ref Numbers so they will get Hopefully to the Right Department. I do send scanned Copies of the documents so that they can see they are on there way, No real Problems so far apart from the one that seems to have caused a little upset on another Topic, but all dealt with now so that is dead for me.

 

JP :tiphat:

 

thankyou

[Jack Peterson]

But when I mentioned transportable pensions, there are some pensions in Canada that you can withdraw the full cash value and move the entire amount to another country (if you are emigrating for example).  

Yes Dave we can do the same with UK pensions but we were advised not to as this then makes it a Non Government Pension  ie bought out by Insurance Companies and the fees are sometimes questionable. UK Government Pensions are Non Taxable to a Limit of 10.500 pounds? per Year Any Additional pensions are then Taxed at 20% to another Limit I will never get that amount so I just would not know these extra Limits. In the main. a UK State Pension is Tax free, as it will never reach anywhere near that amount for me and i doubt I will live long enough to see it rise to any real amount. of Course tax adjustments are always with us but just at this Time I am Happy both with my State and Private pensions  and the Exchange rate they come out at.

 

My military pension is another Story and has many if's and but's due to Divorce but maybe another Topic on things will revel the oddity of this.

 

 

JP :tiphat: