Stop the value of your pension from decreasing or the cost of your mortgage from
Many expats abroad unknowingly lose money when receiving their monthly pension payment.
Often a pension is paid in sterling at a UK (or off-shore) bank, exchanged into
the local currency required, and then sent to the pension holder’s overseas
bank account. Alternatively, pensions are paid into a sterling account in their
overseas bank account, and then exchanged into local currency.
By using the standard banking system, money saving options are often overlooked,
unnecessary charges are made and poor currency conversion rates applied. On average,
a pension holder loses around £30-£50 unnecessarily on every transfer
– this amounts to actually giving away £600 a year
– and in some cases, much more! So what is the solution? It’s simple
– use Smart Currency Exchange rather than a bank.
The money saving option – fix the currency exchange rate
Sam retired to his sunny overseas destination at the end of May 2009. In
June, he called Smart Currency, explained that his monthly pension amounted to £2,476
and wanted to know what options were available. After a chat with a Smart Trader,
he decided to set up a regular payment with a fixed exchange rate for €1.175/€1
for the full year. In July, he received €2,909 in his overseas location and
would continue to do so every month for the full year. To set up this facility,
Sam set up a standing order from his bank to Smart Currency and paid a small administration
If Sam decided against fixing a currency exchange rate, his monthly amount would
have decreased with the weakening sterling rate and by November 09 his payment would
have amounted to less than €2,650 - a 9% drop in value. Banks often fail to
offer or even mention the option of fixing a currency exchange rate for use in the
Sam, like many other expats, assumed he was getting the best possible deal from
his bank - but sadly, banks often fail to offer or even mention the option of fixing
a currency exchange rate for use in the future. They tend to offer customers lower
exchange rates and usually charge commission and transfer fees, all of which can
be reduced, if not eliminated altogether. There is absolutely no point paying fees
you don’t have to, particularly in the current economic climate where every
Get good exchange rates
Smart Currency Exchange offers exchange rates that are guaranteed to beat the rates
provided by the bank. Banks often set their buying and selling rates for currency
first thing in the morning – when you visit a branch, you’ll see them
hanging on the wall. Specialists like Smart Currency, however, do not set the rates
in advance but call into the market floor to obtain the best rate possible at the
time of the transaction.
Watching the value of your pension depreciate can be soul-destroying.
Receiving €2,650 rather than €2,900 can also cause anxiety. These situations
can be avoided when discussing matters with an international payment specialist.
And what about an overseas mortgage payment?
Sadly, unlike Sam, his neighbour Richard failed to talk to Smart Currency. His mortgage
payment was € 700 per month. Richard paid his mortgage from
the UK using sterling month by month through a bank. By November of this year, the
cost had risen to £636. If Richard had been Smart every payment could have
been set at £569.
In order to ensure that you know
how to save money and to eliminate the possibilty of a decreasing pension or increasing
mortgage payment, call on our free phone number 0808 163 0102 (free phone) or Apply Online.
"Thank you for being true to your word and delivering on all the promises.
It helped make the process much easier-will use again on regular basis to transfer
money for mortgage. John O'Mahony "
So...how can Smart specifically help you to save money
on pension and mortgage payments? Smart helps to:
- Provide better-than-bank exchange
rates by calling through to the market floor for the best rate on your behalf
- Reduce the risk that the amount
you want to receive decreases in value (eg. pension income) or reduce the risk that
the amount you need to pay increases in value (eg. mortgage payment)
- Offer a service with no commission
an no hidden charges. There is, however, a small administrative fee on all transfers
below £3,000. However, the savings in better-than-bank exchange rates and
the ability to fix rates for the future far outweighs the small fee.
- Give you direct access to your
dedicated Smart Trader. Your Smart Trader will be able to explain the options available
when making regular payments, the market conditions and various ways to hedge against
changes in the value of currency exchange rates. Also, it's important to note that
unlike most UK international payment specialists, Smart Traders are not paid on
commission, thus your trader will be working for you - not their pay-packet.
- Make the whole process fast and
effortless - leaving more time for you to spend focusing on enjoying your pension
Apply online now and get access to
your Smart Trader to discuss just how much Smart can save you!