UK Government Pensions Exchange Rate

[Daffy D]

I have been receiving my UK Pension paid directly into my SCB account for many years. Regular deposits every 4 weeks no problem.

 

At first when my pension payments started I would regularly check the amount arriving in my Thai bank. I can't remember exactly but the difference between the exchange rate and what arrived in the account, allowing for some minor bank charges/transfer fees seemed quite small and reasonable.

 

Over the years there were of course some fluctuations of monies deposited depending on the fluctuations of the exchange rate, but overall it seemed OK.

 

With all this talk of tax, both here and the UK and general messing with the pension system of the UK Government, I thought I'd just have a check on the payments into my Thai Bank.

 

My (Frozen) Pension is £628.88 per 4 weeks.

 

These last couple of payments into the bank have been ฿17827.45 and just last week ฿18546.56.

 

Now according to the current exchange rate of ฿43.319, the amounts should have been nearer  ฿27242.52 or similar. If my calculations are correct I'm missing out on about ฿9000 every month. 

 

Surly the bank charges could not be so high on such a relatively small amount and any new tax or additional charges would show up on the bank statement.

 

Any thoughts, anyone?  

Anyone interested on checking their own historical Exchange Rate:-
https://www.x-rates.com/historical/?from=THB&amount=1&date=2020-02-12

 

[chickenslegs]

9 minutes ago, Daffy D said:

My (Frozen) Pension is £628.88 per 4 weeks.

Are you sure about that figure? That was the approximate rate in 2022/23 but you said you had been receiving your (frozen) pension for many years.

 

Going by your latest 18,546.52 THB deposit  -that would be around 430 GBP per 4 weeks. That was the approximate rate in 2013/14.

 

https://adviser.royallondon.com/technical-central/rates-and-factors/state-pension/basic-state-pension-rates/

[Daffy D]

I have been receiving my pension since July 2006.

 

I have a letter from Pension Service confirming amount each week is £157.22 

£157.22  x4 = £628.88

 

 

 

[Liverpool Lou]

23 minutes ago, Daffy D said:

Any thoughts, anyone?

It's irrelevant, the exchange rate is not negotiable, take it up with the DWP and the bank that it uses to send your pension if you have time to waste, we get what we are given. 

 

Ten days ago I got a 42.54 rate and the previous month (28 days) 41.42, calculated using the amount credited to my Thai account.

[chickenslegs]

13 minutes ago, Daffy D said:

I have been receiving my pension since July 2006.

 

I have a letter from Pension Service confirming amount each week is £157.22 

£157.22  x4 = £628.88

 

 

 

That's confusing. The State Pension in 2006 was 84.25 per week. Did you have some extra entitlement to almost double it?

 

Edit to add: Maybe you have an earnings related pension (SERPS)

But that doesn't explain the difference between what you should get and what appears in your bank.

[Daffy D]

11 minutes ago, chickenslegs said:

That's confusing. The State Pension in 2006 was 84.25 per week. Did you have some extra entitlement to almost double it?

I see what you mean!

 

There are some additions to the basic pension but this was their doing. I just gave them the facts and this is what they came up with.

 

I don't really understand all this so just accepted what they said. 

 

Attached original letter from Pension Service:-

 

 

[KhunBENQ]

Based on the figures presented I can only confirm that there is a huge gap.

Your math is correct and the overall rate is less than 30!

 

Check with SCB whether they can give you the exact details of the transfers.

Has it initiated in GBP or already converted to THB in the UK which might be bad.

 

 

[Upnotover]

28 minutes ago, Daffy D said:

I see what you mean!

 

There are some additions to the basic pension but this was their doing. I just gave them the facts and this is what they came up with.

 

I don't really understand all this so just accepted what they said. 

 

Attached original letter from Pension Service:-

 

 

It's my guess you are now not getting the Adult Dependency Increase which apparently ceased in 2020.

[jwest10]

2 hours ago, Daffy D said:

I have been receiving my UK Pension paid directly into my SCB account for many years. Regular deposits every 4 weeks no problem.

 

At first when my pension payments started I would regularly check the amount arriving in my Thai bank. I can't remember exactly but the difference between the exchange rate and what arrived in the account, allowing for some minor bank charges/transfer fees seemed quite small and reasonable.

 

Over the years there were of course some fluctuations of monies deposited depending on the fluctuations of the exchange rate, but overall it seemed OK.

 

With all this talk of tax, both here and the UK and general messing with the pension system of the UK Government, I thought I'd just have a check on the payments into my Thai Bank.

 

My (Frozen) Pension is £628.88 per 4 weeks.

 

These last couple of payments into the bank have been ฿17827.45 and just last week ฿18546.56.

 

Now according to the current exchange rate of ฿43.319, the amounts should have been nearer  ฿27242.52 or similar. If my calculations are correct I'm missing out on about ฿9000 every month. 

 

Surly the bank charges could not be so high on such a relatively small amount and any new tax or additional charges would show up on the bank statement.

 

Any thoughts, anyone?  

Anyone interested on checking their own historical Exchange Rate:-
https://www.x-rates.com/historical/?from=THB&amount=1&date=2020-02-12

 

Your figures do not add up and yes check mine each 4 weeks for a paltry amount and you sure you getting the pounds you quoted

 

[jwest10]

1 hour ago, Daffy D said:

I see what you mean!

 

There are some additions to the basic pension but this was their doing. I just gave them the facts and this is what they came up with.

 

I don't really understand all this so just accepted what they said. 

 

Attached original letter from Pension Service:-

 

 

Just be careful what you share and that included figures but this frozen state pension is  barbaric.

 

[Daffy D]

1 hour ago, Upnotover said:

It's my guess you are now not getting the Adult Dependency Increase which apparently ceased in 2020.

That must be it.

I read something about the Adult Dependency thing at the time but took little notice of it. With that gone the figures make a bit more sense.

 

Guess I'll have to tell the wife and kids I can't afford them any more 

 

 

 

[Daffy D]

1 hour ago, KhunBENQ said:

Based on the figures presented I can only confirm that there is a huge gap.

Your math is correct and the overall rate is less than 30!

 

Check with SCB whether they can give you the exact details of the transfers.

Has it initiated in GBP or already converted to THB in the UK which might be bad.

 

 

I checked all that when first set up and as I said monies arriving in my Thai bank were Ok. 

 

I think "upnotover" hit the nail with the cancellation of the Adult Dependency Payment.

 

 

[jwest10]

1 hour ago, Upnotover said:

It's my guess you are now not getting the Adult Dependency Increase which apparently ceased in 2020.

Very surprised you did not notice it before and 5 years is a long time but it seems you have survived unless you won the lotto that is and not being disrespectful

[OJAS]

5 hours ago, Liverpool Lou said:

 and the bank that it uses to send your pension

 

This is probably Citibank who presumably levy a commission for their services, which is reflected in their net exchange rates which are therefore less favourable than the corresponding XE rates upon which @Daffy D has based his calculations.

[Daffy D]

5 hours ago, jwest10 said:

Very surprised you did not notice it before and 5 years is a long time but it seems you have survived unless you won the lotto that is and not being disrespectful

At the time there was a lot of Exchange fluctuations and so different monthly amounts arriving in the bank did not raise any real concerns.

 

No I did not win the lotto and at the time had sufficient funds not to have to rely completely on the pension.  

[Middle Aged Grouch]

With all the new trends to flush money to Zelinski and Ukraine, soon they will be looking for any excuse to raise taxes and cut government spending (that includes pensions).

[topt]

8 hours ago, jwest10 said:

Just be careful what you share and that included figures but this frozen state pension is  barbaric.

 

It has always been the case.

You can argue it is discriminatory but "barbaric" - get real......

[jwest10]

13 hours ago, Daffy D said:

At the time there was a lot of Exchange fluctuations and so different monthly amounts arriving in the bank did not raise any real concerns.

 

No I did not win the lotto and at the time had sufficient funds not to have to rely completely on the pension.  

Yes, like most of us with frozen income  and a wonderful Thai family to support

[billd766]

23 hours ago, Daffy D said:

I have been receiving my UK Pension paid directly into my SCB account for many years. Regular deposits every 4 weeks no problem.

 

At first when my pension payments started I would regularly check the amount arriving in my Thai bank. I can't remember exactly but the difference between the exchange rate and what arrived in the account, allowing for some minor bank charges/transfer fees seemed quite small and reasonable.

 

Over the years there were of course some fluctuations of monies deposited depending on the fluctuations of the exchange rate, but overall it seemed OK.

 

With all this talk of tax, both here and the UK and general messing with the pension system of the UK Government, I thought I'd just have a check on the payments into my Thai Bank.

 

My (Frozen) Pension is £628.88 per 4 weeks.

 

These last couple of payments into the bank have been ฿17827.45 and just last week ฿18546.56.

 

Now according to the current exchange rate of ฿43.319, the amounts should have been nearer  ฿27242.52 or similar. If my calculations are correct I'm missing out on about ฿9000 every month. 

 

Surly the bank charges could not be so high on such a relatively small amount and any new tax or additional charges would show up on the bank statement.

 

Any thoughts, anyone?  

Anyone interested on checking their own historical Exchange Rate:-
https://www.x-rates.com/historical/?from=THB&amount=1&date=2020-02-12

 

I do a daily forex rate check on KBank, Bangkok bank, Wise UK where my pensions are sent to and XE simply as another reference.

 

KBank is usually the worst followed by Bangkok bank. Both are lower than Wise, but when I transfer from Wise to BKK bank I get a better exchange rate, and XE is simply another reference.