UK Pension

Hi
We are moving over next month and our original intention was to have pensions paid into UK bank account and then transfer over when needed or when exchange rates are good, but talking to DWP in Newcastle, they can transfer direct and say that as they change up large amounts, they can get good exchange rates but all is dependent on the inter bank rate at the time. Can any readers advise as to the best way to play it as we are not sure which way to go. Any views will be greatly appreciated.

Thanks

Pensions will be paid direct at the current bank rate and no charges to do so.
Another advantage is that, by paying a regular monthly pension into your Spanish bank account, you will pay no charges at the bank either.
You can wait until the exchange rate is advantageous to you but you may need the money when the rate isn't so good. Plus the bank won't class it as a regular pension so you may be charged admin fees by the bank.

Thank you Marcliff, that's good info and it does seem by what you say that this is the way to go. Just one question though, when you say the current bank rate, is that the inter bank rate or is it slightly below like an FX rate?
Thanks again.

I know it's always higher than the exchange rate my bank would give me and higher than the exchange rate at Euro exchange. My last pension was at 1.19 and the bank was doing it at 1.16 (plus 10 quid for the privilege) and the euro exchange in Quesada was 1.165.
It appears on my bank account as "deposit of pensions" and I get all my banking free because of that, including one debit card.
I know some say that there are "no charges" with some currency companies (I'm sure they don't work for nothing, though) but I worked out that, even if I got the best exchange rate they could give, I'd probably make about 6 or 7 euros a month. Not really worth the bother and I know my pension will be paid in on the correct date so it's easier to budget.

Got it ! seems like a better bet all round and I think I am going with that, thanks Marcliff, I am glad I asked and most certainly glad you answered.

Check with DWP again. As I understand it DWP will be happy to pay your state pension into a Spanish bank account BUT I understand if you do that you will not receive any annual cost of living increments to your pension and your pension will remain at the current rate so you could well loose out

We have my wife's UK pension paid direct to Bankinter. She gets the best rate & any increments, just the same as if paid in UK

My pension is paid every 28 days,if you don,t get commercial rate its as close as you,ll get,i get increase every year,obviously nobody knows effect of Brexit lunacy and yes no bank charges

I used to have my pension paid in to my English account, 2 things, first my accountant told me that at the end of every fiscal year the Spanish government tell the accountants the average rate of exchange for the year for tax purposes, and it is usually in the Spanish Govs favor, so you can lose out slightly that way, but unless you have property in UK, don't close your UK account because if you live out here, you cannot open an account in England , from Spain. Have my pension paid in to Spain, no problems!

Ron Hill wrote:Check with DWP again. As I understand it DWP will be happy to pay your state pension into a Spanish bank account BUT I understand if you do that you will not receive any annual cost of living increments to your pension and your pension will remain at the current rate so you could well loose out

Any rises each year are added to your pension, just like UK. You'll also get an advice of pension each year telling you how much it is going up. Only countries that don't have a reciprocal agreement for their pensioners have their pensions frozen and all EU countries have a reciprocal agreement as does places like the USA.