Pensions Abroad?

Discussion in 'Army Pay, Claims & JPA' started by eddie930, Nov 23, 2007.

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  1. If after serving 22 years I decided to live abroad can I have my pension put into a foriegn bank account every month? Also, because I'm living abroad will I get it tax free or will I have to claim the tax back every year myself?
    Hope someone can help me out,the RAO certainly cant!!!
     
  2. You can have you pension paid aboroad but you still have to pay tax on it because it is generatred from UK.

    Hope this helps.
     
  3. You can have your pension paid into a foreign bank account but there are restrictions as to which countries they will do this to. The RAO probably can't answer your questions as it has nothing to do with them; pensions are administered through a civvy company. When you complete your application for your pension you need to inform them that you want it to be paid into a foreign account and they sort it out.

    If you decide to live in one of the countries that they can pay to (like I do) then you can simply open an offshore account and get it paid into that however make sure you open a Sterling offshore account because they can't pay into it if it is Dollar or Euro.

    As for the tax; yes you have to pay tax on it regardless!!

    Hope that helps.
     
  4. Bear in mind that if you retire to a country outside the EU you will, almost certainly, lose the benefits of index-linking.

    That means that your pension will lose its value slowly over a long period of time (or very quickly over a year if you emigrate to Zimbabwe).

    I can't remember which countries are affected but Oz, NZ, SA and Canada spring to mind.

    Litotes
     
  5. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Quote from the latest Paymaster newsletter (they will pay your pension):
    http://www.xafinity.com/portals/3/docs/spva%20newsletter%202007.pdf

    Note for Litotes. The loss of indexing applies only to the State Pension not your service pension.
     
  6. I stand corrected, Sir!

    Litotes
     
  7. Keep your UK bank account and open another locally. Use your ATM as usual for small amounts (£300 per day) or tx via swift code (3 days) for larger amounts. Be sure the latter arrives in sterling as you'll enjoy a better exchange rate.
     
  8. A friend of mine former RRF now lives in Bulgaria!!!!! with his pension no probs
     
  9. Nationwide building society operate the Flexaccount - its their current account, this allows you to draw 400 euros a day at the inter bank rate - much, much better than most other bank/tourist rates and they dont charge a withdrawal fee. I phoned HIFX and they couldnt beat it.

    HIFX (or Currencies Direct) are better though if you 'lock in for 2 years' this may mean a lower exchange rate than Nationwide can provide but the rate is fixed for 2 years, this avoids currency fluctuations - ideal if you want to know what your overseas mortgage payments will be for the term.
     
  10. Currencies Direct will charge £5 per transaction if the transaction is less than £5000.
     
  11. sorry to revive such an old thread - has anyone got definitive information / sources on the pension issue? particularly interested in a source for the issue of whether service pension is index linked when emigrating to New Zealand.

    but any further information / advice / sources on the whole emigration to NZ / pension / tax / bank account issue is welcome.

    cheers.
     
  12. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Have a read of this from others who have made the move:
    military pensions in NZ Q&A
     
  13. had to delete the duplicate "http//" in the link, but an excellent forum - thanks!
     
  14. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Link fixed. :D