Receiving British Pension In Thailand

[roskruge]

If their is a part of the forum that specialises in this subject let me know.

I have recently become eligible for the British Pension. I have made the application and it is approved. The problem is the British Pension Service do not pay via SWIFT directly into a Thai bank account.

Will other British pensioners in Thailand let me know how they receive their funds from the British Pension Service into Thailand. , without giving personal details. Thanks

[ignis]

Myself money is paid directly into 'First Direct' [phone/internet banking] part of HSBC........ A template was set up so 1x email = if and when needed money is transferred to HSBC Bangkok.

[Mobi]

You will have to arrange for your pension to be paid into a UK bank account or building society and from there you make your own arrangements to transfer funds to Thailand - as and when needed.

Telegraphic transfers are usually around 20 pounds a transfer, but you could withdraw your money locally via an ATM card on the UK bank - but watch the rates. Some Building Societies are known for good rates and no charges on atm withdrawals.

[Mosha]

I would like to ask, without hijacking the thread. What is the tax situation? Are we entitled to a tax rate reduction whilst living out here.?

[Mobi]

I would like to ask, without hijacking the thread. What is the tax situation? Are we entitled to a tax rate reduction whilst living out here.?

If you have set up home in Thailand and you have been out of the UK for more than nine months of the tax year, then you should qualify as non resident for tax purposes.

However, this will only apply to income earned "offshore". Your UK pension is taxable in the UK, but you are entitled to apply your personal tax allowances against this income.

[Mosha]

Ok thanks for the reply.

[naka]

If their is a part of the forum that specialises in this subject let me know.

I have recently become eligible for the British Pension. I have made the application and it is approved. The problem is the British Pension Service do not pay via SWIFT directly into a Thai bank account.

Will other British pensioners in Thailand let me know how they receive their funds from the British Pension Service into Thailand. , without giving personal details. Thanks

You should be thankfull they will not send via swift as each transaction would cost you 20-30 pounds.

As another poster suggested get it paid into your UK bank and collect the funds via ATM.

Even better, if you don't need the money on a regular basis then allow it to build up in UK for

a year then do one large swift transfer to your Thai account.

Naka.

[roskruge]

I don’t have any accounts in the UK, Bank or Building Society, as I have not lived in UK for about 39 years, but I do have 14 qualifying years of pension.

[Mobi]

I don't have any accounts in the UK, Bank or Building Society, as I have not lived in UK for about 39 years, but I do have 14 qualifying years of pension.

The bank does not have to be in the UK - it can be in any country where a Swift transfer is allowed by the UK pension authorities. You can check this out, although I doubt it will help you, if your only accounts are in Thailand.

Another possibility is if you know someone - maybe a family member - whose account you can use for this purpose. I am not sure if the receiving bank needs to be in your name. Again, you need to check this out.

Failing all this, then you have to see what you can do about opening account in the UK. Not easy, I'm afraid in these days of money laundering restrictions.

Maybe someone else has some ideas?

[roskruge]

The Pension Service refers to a “Y agent” what is this ?

....”I advise that you could be paid into your bank in Thailand, but only by Y agent.

.... could anyone elaborate on this?

[coventry]

I don’t have any accounts in the UK, Bank or Building Society, as I have not lived in UK for about 39 years, but I do have 14 qualifying years of pension.

I thought the minimum qualifying years for the minimum State Pension was 15 years or am I mistaken ?

[roskruge]

coventry. No the minimum is 11 qualifying years to get 25% the max is 44 qualifying years. as I understand it.

[Lite Beer]

coventry. No the minimum is 11 qualifying years to get 25% the max is 44 qualifying years. as I understand it.

The max has now been redused to 30 qualifying years

[briley]

Roskruge - seriously look at buying in past years. The economics can be good.

From what you say it sounds like you paid in many years ago. You can (due to an error by Inland Revenue) pay in from 1997(??) to the year you are retirement age.

Cost is about £350 per year.

Return is about 2.5% of the basic pension for each extra year paid. For a single person that is currently about £117 a year, for a married person, even to a Thai, £187 a year.

2 to 3 years time and you are in profit for the rest of your life. And this includes the fact that you will not get the pension increase each year.

Note that the max is only reducing to 30 years for people who reach retirement age after 5th April 2010.

[Mobi]

coventry. No the minimum is 11 qualifying years to get 25% the max is 44 qualifying years. as I understand it.

The max has now been reduced to 30 qualifying years

And the minimum contribution payment period to qualify is now 1 year, assuming you will be 65 in 2010 or later. Otherwise the 11 years applies.

I am assuming the OP is already over 65, in which case I believe it is too late to make up back contributions.

Here is recent thread that is crammed full of useful information on this subject:

UK PENSION THREAD

[roskruge]

Thanks briley, and thanks for all other post so far any info greatly appreciated.

[briley]

You can make up unpaid contributions even if over retirement age.

You and Yours and Moneybox (BBC Radio 4 programmes) are running a campaign to get women over retirement age to pay a few years contributions and they can then get their pension increased from retirement date.

It is a very good deal since some women can opt to pay for X years and get a lovely lump sum in extra pension. The lump sum can be more than their payment AND the DHSS can take the payment from the lump sum so they don't even have to put up a penny to increase their pension.

DHSS did deny this was possible but has had to back peddle.

But before doing this check the rules carefully.

[JetsetBkk]

Note that the max is only reducing to 30 years for people who reach retirement age after 5th April 2010.

Thanks for that - I won't be 65 until after 2010. I have over 30 qualifying years and was going to pay to get more - as requested some time ago by the Inland Revenue people at Newcastle when I asked for a forecast a few years ago. But, as they told me I could pay later, I didn't do it. I'll now check with them whether I can get 100% pension without paying for more years.

Here is recent thread that is crammed full of useful information on this subject:

UK PENSION THREAD

Thanks for this - will read now!

[siam-i-am]

If their is a part of the forum that specialises in this subject let me know.

I have recently become eligible for the British Pension. I have made the application and it is approved. The problem is the British Pension Service do not pay via SWIFT directly into a Thai bank account.

Will other British pensioners in Thailand let me know how they receive their funds from the British Pension Service into Thailand. , without giving personal details. Thanks

Try and get your pension paid into a UK bank, Nationwide is good (no charge) If you tell the BPS you have left the country they will not pass on any increase in pension. Stay stumm and enjoy any increases in the future.

[Lite Beer]

If their is a part of the forum that specialises in this subject let me know.

I have recently become eligible for the British Pension. I have made the application and it is approved. The problem is the British Pension Service do not pay via SWIFT directly into a Thai bank account.

Will other British pensioners in Thailand let me know how they receive their funds from the British Pension Service into Thailand. , without giving personal details. Thanks

Try and get your pension paid into a UK bank, Nationwide is good (no charge) If you tell the BPS you have left the country they will not pass on any increase in pension. Stay stumm and enjoy any increases in the future.

Until they check up on you and cut your pension to recoup their losses. Which by all accounts has happened to a lot of people.

This freezing of your pension rule is now being contested in the European courts. So you never know, they might be forced to scrap this rule.

[roskruge]

Try and get your pension paid into a UK bank, Nationwide is good (no charge) If you tell the BPS you have left the country they will not pass on any increase in pension. Stay stumm and enjoy any increases in the future.

"Until they check up on you and cut your pension to recoup their losses. Which by all accounts has happened to a lot of people."

You are absolutely correct “Lite Beer” I also get the Australian Pension and the Centrelink (the pension service) computer is linked to the immigration department computer, they know the day you enter and leave the country. So to deceive a government department like “slam-i-am” suggest is stupid.

[roskruge]

I don’t have any accounts in the UK, Bank or Building Society, as I have not lived in UK for about 39 years,

------------------

The Pension Service refers to a “Y agent” what is this ?

....”I advise that you could be paid into your bank in Thailand, but only by Y agent".

.... could anyone elaborate on this?

[Godders]

Don't worry about not being able to set up a UK bank account. Why bother when you'd have to pay tax on your savings. Better to set up an offshore account, which will be tax free, to accumulate your pension money. Then you could have it transferred electronically to a Thai bank or draw it via an ATM.

[Mobi]

Don't worry about not being able to set up a UK bank account. Why bother when you'd have to pay tax on your savings. Better to set up an offshore account, which will be tax free, to accumulate your pension money. Then you could have it transferred electronically to a Thai bank or draw it via an ATM.

Sorry to disappoint you, but you are wrong.

It doesn't matter where you set up your bank account, you are liable to pay tax on your Uk state pension income, after deduction of your appropriate personal tax allowances.

If you are non resident for tax, it is only your NON UK INCOME that is free of the UK tax net.

[Manchester]

Don't worry about not being able to set up a UK bank account. Why bother when you'd have to pay tax on your savings. Better to set up an offshore account, which will be tax free, to accumulate your pension money. Then you could have it transferred electronically to a Thai bank or draw it via an ATM.

Not true

[Daffy D]

I had a similar situation as the OP.

Have been in LOS for years no UK bank account any more. As mentioned there is no agreement with the Thai banking system for direct payments.

The UK pension office will send your check to a Thai bank but it takes long time. First the check has to arrive at the Thai bank then it has to be returned for verification before it is credited to your account. May take a couple of months.

HSBC (Channel Is.) have stopped opening accounts with less than 20K-GBP and if your balance falls below this they charge 20 quid a month fee. Plus ATM transfer fee.

As mentioned Nationwide have a good deal with low charges but you have to have an address in UK. Friend, relation?

Best bet is the Nationwide. And as also mentioned the best way is to get your pension money is with ATM card.

Don’t know if Internet banking is a requirement but HSBC have a system that seems fairly safe to me. They bring up a virtual system on the log-on page where you have to click on the screen virtual keyboard to input your password. No chance of “Keyloggers” also they just ask for 3 random letters/numbers each time so at no time do you use your full password for someone to copy.

Hope this helps.

D.D.

[sumrit]

I had a similar situation as the OP.

Have been in LOS for years no UK bank account any more. As mentioned there is no agreement with the Thai banking system for direct payments.

The UK pension office will send your check to a Thai bank but it takes long time. First the check has to arrive at the Thai bank then it has to be returned for verification before it is credited to your account. May take a couple of months.

HSBC (Channel Is.) have stopped opening accounts with less than 20K-GBP and if your balance falls below this they charge 20 quid a month fee. Plus ATM transfer fee.

As mentioned Nationwide have a good deal with low charges but you have to have an address in UK. Friend, relation?

Best bet is the Nationwide. And as also mentioned the best way is to get your pension money is with ATM card.

Don’t know if Internet banking is a requirement but HSBC have a system that seems fairly safe to me. They bring up a virtual system on the log-on page where you have to click on the screen virtual keyboard to input your password. No chance of “Keyloggers” also they just ask for 3 random letters/numbers each time so at no time do you use your full password for someone to copy.Hope this helps.

D.D.

But the HSBC will only give you the offshore exchange rate for withdrawals from an ATM in Thailand where as the Nationwide is free banking and they give you the onshore exchange rate.

[naka]

Roskruge.

Firstly, you are not allowed to use a friend's/relation's address to open a UK account, so best forget this.

You can however open a Channel Islands account as a non resident using your overseas address

and have your UK pension paid into this, just as you would with a UK mainland account.

Problem is, the vast majority of C.I. banks require a substantial amount to open an account, around 20k - 50k pounds.

For a current account "LloydsTSB Offshore" will open an "International Sterling" account with a balance of only

GBP 100 (last time I looked at their website)

The account costs 90 pounds a year in fees, but you don't seem to have a lot of options.

For a savings account which requires a deposit of only 1 pound see Here

Naka.

Edited November 14, 2007 by naka

[Taijitu]

Roskruge.

Firstly, you are not allowed to use a friend's/relation's address to open a UK account, so best forget this.

Naka.

The suggestion made by Mobi was related to the receiving bank account being in the name of a friend or relation and not about opening a bank account using a friend's/relation's address. This is possible as the Pension Service will pay into any bank nominated by the pensioner, even if the pensioner is not the account holder. Mobi's suggestion is valid.

[Mobi]

Roskruge.

Firstly, you are not allowed to use a friend's/relation's address to open a UK account, so best forget this.

Naka.

The suggestion made by Mobi was related to the receiving bank account being in the name of a friend or relation and not about opening a bank account using a friend's/relation's address. This is possible as the Pension Service will pay into any bank nominated by the pensioner, even if the pensioner is not the account holder. Mobi's suggestion is valid.

Thank you Taijitu, that is indeed what I was suggesting, and I think it is correct.

On the subject of opening Bank accounts, about 3 years ago I opened a Bank account with the Abbey International in the CI, using my Thai address. The opening minimum deposit was 5,000 pounds, and there are no charges provided I maintain 5k in the account. If it falls

below this figure, it costs me 5 pounds per month.

I have a Visa debit card, a cheque book and operate the account on the internet, and can transfer money to other offshore Abbey instant access accounts which pay reasonable rates of interest.

The account is within the UK bank system ,and you can make BACS transfer to/from other UK onshore banks accounts at no cost.

Transfers to Thailand are made by phone, and are very quick and efficient, each one costing 20 pounds. The staff there are used to dealing with expats from the far corners of the world and are very professional.

Your only problem with opening the account is providing proof of address in Thailand, along the lines of utility bills, rent lease, etc similar to the requirements in the UK. The documents will need to be translated and authenticated.