Which Bank for my UK pension?

[jaiyenyen]

I'm in the process of claiming my UK government pension. I live in Thailand full-time. I have both Thai and UK bank accounts. My question is; Which bank should I have my pension paid in to? Are there any advantages to either?

[Kwasaki]

They pay into any Thai bank given correct address and codes wanted. 

Mine is paid into Bangkok Bank every 4 weeks on a Thursday. 

[worrab]

I would be tempted to have it paid into your UK bank then transfer through Wise as and when. By this method you can try to get the best exchange rate. This is what I do with my pensions. 

[KannikaP]

1 minute ago, worrab said:

I would be tempted to have it paid into your UK bank then transfer through Wise as and when. By this method you can try to get the best exchange rate. This is what I do with my pensions. 

I get mine paid, weekly, into my Wise GBP account.

[jaiyenyen]

I've never used Wise. Is there a transfer fee?

 

[Kwasaki]

14 minutes ago, jaiyenyen said:

I've never used Wise. Is there a transfer fee?

 

Yes it's fair and about the same transfer rate give or take a bit as UK city-bank that (DWP) IPC use to pay directly into a Thai Bank.

 

My arrangements were years before they were about but I use Wise to get other money from UK. 

[anchadian]

32 minutes ago, KannikaP said:

I get mine paid, weekly, into my Wise GBP account.

i.e. like myself, paid in advance.

 

Sensible.  You then have control of you pension weekly and transfer to a Thai bank account when the exchange rate is favourable.

[yeahbutif]

Note if paid into a Thai Bank account your won't get any pension increases.  The amount you get will always stay the same . 

[Kwasaki]

8 minutes ago, yeahbutif said:

Note if paid into a Thai Bank account your won't get any pension increases.  The amount you get will always stay the same . 

Be careful if you get your UK pension paid into a Thai Bank and live in Thailand permanently the uk pension is frozen and you are not allowed UK pension rises but depends on how many days you stay in Thailand.

[jaiyenyen]

This is one of the reasons I'm leaning towards having it paid into my Nationwide account.

I'd rather avoid the 'Frozen' pension if possible.

[Kwasaki]

16 minutes ago, jaiyenyen said:

This is one of the reasons I'm leaning towards having it paid into my Nationwide account.

I'd rather avoid the 'Frozen' pension if possible.

Yes it goes up by an amazing amount in 10 years. ????

[petermik]

UK Bank account without question.

[scubascuba3]

Some people consolidate pensions before transferring to Thailand, one reason is so it's over 65k a month

[worrab]

7 hours ago, jaiyenyen said:

This is one of the reasons I'm leaning towards having it paid into my Nationwide account.

I'd rather avoid the 'Frozen' pension if possible.

I hate to say this but that will not happen. You will have a frozen pension and you will receive Proof of Life letters regularly which have to be returned after signing. So unless you have a UK address and someone who can forge your signature, you are on a loser.

Just out of interest, how did you apply for your pension? By mail or phone?  

[brewsterbudgen]

8 hours ago, jaiyenyen said:

This is one of the reasons I'm leaning towards having it paid into my Nationwide account.

I'd rather avoid the 'Frozen' pension if possible.

Isn't it risky? If it's discovered that you're defrauding the DWP, couldn't you get your pension terminated and have to repay all the underpayments.

[worrab]

8 hours ago, jaiyenyen said:

This is one of the reasons I'm leaning towards having it paid into my Nationwide account.

I'd rather avoid the 'Frozen' pension if possible.

Can I also remind you to check your tax code if you are receiving any other income. DWP are supposed to notify HMRC of the fact you are now getting a State Pension but in my case they failed and have had to back pay some tax!! And it is the job of DWP to do this but hey ho!

[RupertIII]

If you are in a financial position to do so have it paid into Wise and keep it there until the beginning of the next year and then transfer to your Thai a/c.  Overseas income rec'd in Thailand in the same calendar year as earned/paid could be liable to Thai income tax.

[jaiyenyen]

58 minutes ago, worrab said:

I hate to say this but that will not happen. You will have a frozen pension and you will receive Proof of Life letters regularly which have to be returned after signing. So unless you have a UK address and someone who can forge your signature, you are on a loser.

Just out of interest, how did you apply for your pension? By mail or phone?  

I use my sons UK address for all bank correspondence but I would never ask him to forge my signature.

I believe the whole 'Frozen pension to be completely and totally unfair to those of us who've paid NI for 35 years and decide to retire to a different country. It boils my pi55 to know that all the workshy spongers will be eligible for a nice UN-frozen pension when they retire. Not to mention all the benefits they're entitled to claim throughout their NON working life. 

Deep down, I know that I have to accept the frozen pension. But it all seems bl**dy  unfair.

I'm applying by phone.

[nigelforbes]

I used to have my UK State pension paid into my UK HSBC account. Last year I changed and now it's paid directly into Bangkok Bank here in Chiang Mai and it suits me perfectly. No more worrying about exchange rates and transfers. DWP will let you change backwards and forwards but you can't change more often than once every six months. Next year I may go back to the UK and get my pension uprated, at that point I'll revert to HSBC UK.

[jaiyenyen]

So, if my pension is going to be frozen anyway, there's no big advantage to having it paid into my UK account.

It seems much simpler to just accept the situation and have the pension paid into my SCB account.

[kickstart]

21 minutes ago, nigelforbes said:

I used to have my UK State pension paid into my UK HSBC account. Last year I changed and now it's paid directly into Bangkok Bank here in Chiang Mai and it suits me perfectly. No more worrying about exchange rates and transfers. DWP will let you change backwards and forwards but you can't change more often than once every six months. Next year I may go back to the UK and get my pension uprated, at that point I'll revert to HSBC UK.

That is interesting that you can change back and forward.

When I applied for my UK pension, I wanted it paying into my UK bank, but doing the job on-line, the- paying-in-to-the-Uk-bank forms would not download after I had to re-register with the DWP.

Now It is paid in to my Kasikorn bank, as for worrying about exchange rates they have not changed more than 1- 1, 1/2 baht in the almost 2years I have been claiming my pension. 

[worrab]

1 hour ago, jaiyenyen said:

So, if my pension is going to be frozen anyway, there's no big advantage to having it paid into my UK account.

It seems much simpler to just accept the situation and have the pension paid into my SCB account.

That depends on the exchange rates . If it is paid into your UK account then you can hold it there if the rate is lousy and move it when it improves. I have found this better than having a foreign currency account with Bangkok Bank! This is my personal opinion and I totally agree with the way we have been shafted by UK government!! I had been paying for 41 years and to have it frozen because of where I wish to retire to....,..........say no more!

[nigelforbes]

8 hours ago, kickstart said:

That is interesting that you can change back and forward.

When I applied for my UK pension, I wanted it paying into my UK bank, but doing the job on-line, the- paying-in-to-the-Uk-bank forms would not download after I had to re-register with the DWP.

Now It is paid in to my Kasikorn bank, as for worrying about exchange rates they have not changed more than 1- 1, 1/2 baht in the almost 2years I have been claiming my pension. 

Exchange rates will likely become an issue for you at some stage, they have for everyone else over the past two decades. Mostly the problem has been for the really older people who were accustomed to receiving 70 baht per Pound. When that fell to 40 something and even 30 something, that's when stories about Baht manipulation started to arise and of course they blamed corrupt government rather than their own lack of financial planning ability and comprehension.

[nigelforbes]

I see my post above has attracted early morning sad emjoies, let me explain further:

 

Below is the Pound/Baht exchange rate over the past 30 years. Many Brit retirees who moved to Thailand after the crash in 1997 thought the exchange rate was only ever going to get better. Of course it didn't, it peaked and as soon as economic recovery was underway, it was only ever a one way downwards bet. But it took over a decade before many would understand or believe that, the visual appearance of most of Thailand didn't match an economy that was continually strengthening, at least not in their eyes. As for the future? I've always believed that the Baht will settle around 35 to the Pound, given both economic pictures and nothing in them has changed for me in the past  twenty years, your mileage may be different. It's important to remember that Pound Baht is dependent of USD Baht and we all know how well USD is performing and what the likely future is on that front.

 

Note: see the major drop in 2008 from 65 to 50, all USD related.

 

https://tradingeconomics.com/gbpthb:cur

 

 

Edited April 27, 2023 by nigelforbes

[kickstart]

14 hours ago, nigelforbes said:

Exchange rates will likely become an issue for you at some stage, they have for everyone else over the past two decades. Mostly the problem has been for the really older people who were accustomed to receiving 70 baht per Pound. When that fell to 40 something and even 30 something, that's when stories about Baht manipulation started to arise and of course they blamed corrupt government rather than their own lack of financial planning ability and comprehension.

I worked here in Thailand officially, then the contract finished I went back to the Uk, then I come back here on my own, that day at DM airport I got 81 baht/GBP, with marriage extension and now retirement extension I was shipping GBP over here at 70-down to 55 baht /GBP, now things are ok, money is here all the time .

As for present exchange rates, as has been said a military government, normally not good for a currency, economy not in a particularly good shape but the Baht is still strong and not moving, if things happen after the election it might change, is it all this foreign currency reserves keeping the baht up or what. 

[nigelforbes]

3 minutes ago, kickstart said:

I worked here in Thailand officially, then the contract finished I went back to the Uk, then I come back here on my own, that day at DM airport I got 81 baht/GBP, with marriage extension and now retirement extension I was shipping GBP over here at 70-down to 55 baht /GBP, now things are ok, money is here all the time .

As for present exchange rates, as has been said a military government, normally not good for a currency, economy not in a particularly good shape but the Baht is still strong and not moving, if things happen after the election it might change, is it all this foreign currency reserves keeping the baht up or what. 

This may help you. Just read the opening post, that paints the picture.

 

 

[DrJack54]

Use one of the 3 banks that don't have small limit transfer using WISE.

Suggest Bangkok or Kasikorn. 

[NanLaew]

On 4/27/2023 at 9:06 PM, RupertIII said:

If you are in a financial position to do so have it paid into Wise and keep it there until the beginning of the next year and then transfer to your Thai a/c.  Overseas income rec'd in Thailand in the same calendar year as earned/paid could be liable to Thai income tax.

On a side note, for tax purposes, how would the Thai Revenue Department be able to determine when the money being transferred in from overseas was actually 'earned/paid'?

Edited April 28, 2023 by NanLaew