UK pensions

[Eclipse]

The pound is on a downward slide and is not going to reverse for a long time.

Thanks Dodgy Dave, Boris, Gove and the rest of you.

Actually you can blame Carney at the bank of England for talking the pound down by saying there may be quantative easing or rate cuts , they want a weak pound .

Yes. I watched him the other night and the pound fell as he was talking.

Keep it up, you are doing a great job for a Canadian.

[Jip99]

The pound is on a downward slide and is not going to reverse for a long time.

Thanks Dodgy Dave, Boris, Gove and the rest of you.

You are welcome.......................... but I think your crystal ball is malfunctioning!

[Kwasaki]

The pound is on a downward slide and is not going to reverse for a long time.

Thanks Dodgy Dave, Boris, Gove and the rest of you.

Actually you can blame Carney at the bank of England for talking the pound down by saying there may be quantative easing or rate cuts , they want a weak pound .

Yes it's good for exports.

I posted before somewhere, say 600 squids @ 52 = 31,200 bahts @ 47 = 28,200 ......3000 should not be something to worry about.

[billd766]

Some time ago I researched the maximum weekly pension achievable from the state including the basic pension, graduated pension and SERPS ( syn:SP2 and Second State Pension).

The figure came to just a touch short of £270/week. I suspect that the number who get this amount would be very few.

My state pension is about 1/3 of that even having paid contributions for 44 years.

Bill, you did more service time than I did so you were contracted out for a lot longer. You will be getting a lot more service pension than I do, you cannot consider the state pension in isolation.

That must be the reason then.

I don't remember being told about that when I was in the RAF but the good news is that my RAF pension DOES increase every year (not that much but it does) whereas the state pension is frozen.

[denby45]

I am slightly confused (with my small brain) about the frozen pension. I will try to give a couple of examples with appropriate questions and hope someone here can give some clarity.

Ex 1:

I am residing in Thailand at my first claim for state pension. Obviously it does not matter for the first year. However I decide that I want to spend some time back in the UK so off I pop back to the UK for the next 5 years. Obviously I will get the uplift every year so no problem. Suddenly I decide UK is not for me and off I pop back to Thailand and declare so to the UK pension cops. Now the question is:

Will I have to revert back to the pension value i.e. my first claim while I was resident in Thailand or will I be frozen at the last value I was getting in the UK.

Ex 2:

I am residing in Thailand and am coming up for retirement but have not yet claimed the state pension so off I pop back to the UK for the next 5 years and am resident in the UK for the first claim. pension. Obviously again I will get the uplift every year so no problem. Suddenly I decide UK is not for me and off I pop back to Thailand and declare the same to the UK pension cops. Now again the question is the similar:

Will I have to revert back to the pension value i.e. my first claim while resident in UK or will I start on the last value I was getting in the UK.

Den

[JetsetBkk]

The Footsie 100 is now above the level held before the referendum, and the pound is fractionally better today. It will improve.

Better than what? It was 55 before Brexit got underway.

It was 49.5 in February.

It touched 55 last October and was 47.78 in April last year

It was 74 when I came here.

[Rajab Al Zarahni]

I am slightly confused (with my small brain) about the frozen pension. I will try to give a couple of examples with appropriate questions and hope someone here can give some clarity.

Ex 1:

I am residing in Thailand at my first claim for state pension. Obviously it does not matter for the first year. However I decide that I want to spend some time back in the UK so off I pop back to the UK for the next 5 years. Obviously I will get the uplift every year so no problem. Suddenly I decide UK is not for me and off I pop back to Thailand and declare so to the UK pension cops. Now the question is:

Will I have to revert back to the pension value i.e. my first claim while I was resident in Thailand or will I be frozen at the last value I was getting in the UK.

Ex 2:

I am residing in Thailand and am coming up for retirement but have not yet claimed the state pension so off I pop back to the UK for the next 5 years and am resident in the UK for the first claim. pension. Obviously again I will get the uplift every year so no problem. Suddenly I decide UK is not for me and off I pop back to Thailand and declare the same to the UK pension cops. Now again the question is the similar:

Will I have to revert back to the pension value i.e. my first claim while resident in UK or will I start on the last value I was getting in the UK.

Den

Example 1: Your pension amount will revert to the value it had when you were first in Thailand.

Example 2: Your pension amount will be the amount of the last payment in the UK

[mcfish]

The pound is on a downward slide and is not going to reverse for a long time.

Thanks Dodgy Dave, Boris, Gove and the rest of you.

Actually you can blame Carney at the bank of England for talking the pound down by saying there may be quantative easing or rate cuts , they want a weak pound .

Yes. I watched him the other night and the pound fell as he was talking.

Keep it up, you are doing a great job for a Canadian.

Its called jawboning. The Governor of Australia reserve bank has for the last 12 months been telling the press that the Aus dollar must drop considerably and that it will drop...and guess what ??

[TommyUK1960]

The Bank Of England have wanted a weaker pound for a long time. The Brexit has been used as a catalyst but it would have fallen even if we stayed in the Anti-democratic EU.

Soon as we get political stabilisation the pound will gain strength. Just hope the right person is chosen for the job and gets Article 50 underway. Then we can all move forward.

We need Angela Leadsom to be the Next Prime Minister.

Theresa May would be a disaster.

[lungbing]

TommyUK1960, I agree. Theresa May is an awful Home Secretary and said nothing during the referendum debate only to crawl out afterwards to back whoever won. there should be a PM who backed Brexit.

[evadgib]

Some time ago I researched the maximum weekly pension achievable from the state including the basic pension, graduated pension and SERPS ( syn:SP2 and Second State Pension).

The figure came to just a touch short of £270/week. I suspect that the number who get this amount would be very few.

My state pension is about 1/3 of that even having paid contributions for 44 years.

Bill, you did more service time than I did so you were contracted out for a lot longer. You will be getting a lot more service pension than I do, you cannot consider the state pension in isolation.

That must be the reason then.

I don't remember being told about that when I was in the RAF but the good news is that my RAF pension DOES increase every year (not that much but it does) whereas the state pension is frozen.

If the pound is still hovering in Sept everyone on mil/civil service pensions can expect a raise in Apr- CPI an' all that

HTH

[denby45]

I am slightly confused (with my small brain) about the frozen pension. I will try to give a couple of examples with appropriate questions and hope someone here can give some clarity.

Ex 1:

I am residing in Thailand at my first claim for state pension. Obviously it does not matter for the first year. However I decide that I want to spend some time back in the UK so off I pop back to the UK for the next 5 years. Obviously I will get the uplift every year so no problem. Suddenly I decide UK is not for me and off I pop back to Thailand and declare so to the UK pension cops. Now the question is:

Will I have to revert back to the pension value i.e. my first claim while I was resident in Thailand or will I be frozen at the last value I was getting in the UK.

Ex 2:

I am residing in Thailand and am coming up for retirement but have not yet claimed the state pension so off I pop back to the UK for the next 5 years and am resident in the UK for the first claim. pension. Obviously again I will get the uplift every year so no problem. Suddenly I decide UK is not for me and off I pop back to Thailand and declare the same to the UK pension cops. Now again the question is the similar:

Will I have to revert back to the pension value i.e. my first claim while resident in UK or will I start on the last value I was getting in the UK.

Den

Example 1: Your pension amount will revert to the value it had when you were first in Thailand.

Example 2: Your pension amount will be the amount of the last payment in the UK

Thanks for that. It's good to know.

Den

[sandyf]

The Bank Of England have wanted a weaker pound for a long time. The Brexit has been used as a catalyst but it would have fallen even if we stayed in the Anti-democratic EU.

Soon as we get political stabilisation the pound will gain strength. Just hope the right person is chosen for the job and gets Article 50 underway. Then we can all move forward.

We need Angela Leadsom to be the Next Prime Minister.

Theresa May would be a disaster.

It went up when the Gibraltar result came in.

[sandyf]

The Footsie 100 is now above the level held before the referendum, and the pound is fractionally better today. It will improve.

Better than what? It was 55 before Brexit got underway.

Sandy, you are almost correct.

The last time that the GBP hit over 55 baht, at least according to my daily logging of the GBP/THB exchange rate at KBank was on Wednesday 26th August 2015 nearly 10 months ago. Quite a while before the Brexit gained strength.

Belay that message. It was on Tuesday, 22 September 2015. Over 9 months ago.

The pound peaked at 56 on 24th Aug 2015, last time it touched 55 was on 14th Dec 2015. Speculation on the EU referendum being in June came out on Christmas Eve and pound went downhill from then on.

Speculation on late June 2016 as EU Referendum Date

December 24, 2015 1:51 PM

http://gedlinglibdems.org.uk/en/article/2015/1134488/speculation-on-late-june-2016-as-eu-referendum-date

[nong38]

The Footsie 100 is now above the level held before the referendum, and the pound is fractionally better today. It will improve.

Better than what? It was 55 before Brexit got underway.

It was 49.5 in February.

It touched 55 last October and was 47.78 in April last year

It was never 55 this year anywhere I looked, I brought money in at the end of May and got 51.8 it may have gone slightly higher but I thought I did well, would have loved 55 but anything 50 and above is ok for me, I guess that anything below 45 causes problems for us all.

[GuestHouse]

It was never 55 this year anywhere I looked, I brought money in at the end of May and got 51.8 it may have gone slightly higher but I thought I did well, would have loved 55 but anything 50 and above is ok for me, I guess that anything below 45 causes problems for us all.

You are correct, I can't find a Bht55/£ rate this past year.

And you are right too, the low exchange rates hurt everyone. There's a lot of good and decent people living on low incomes who are suffering from the drop in the pound.

[Jip99]

The Footsie 100 is now above the level held before the referendum, and the pound is fractionally better today. It will improve.

Better than what? It was 55 before Brexit got underway.

It was 49.5 in February.

It touched 55 last October and was 47.78 in April last year

It was never 55 this year anywhere I looked, I brought money in at the end of May and got 51.8 it may have gone slightly higher but I thought I did well, would have loved 55 but anything 50 and above is ok for me, I guess that anything below 45 causes problems for us all.

The chart to match my post. The highest rate this year was 53.

http://www.xe.com/currencycharts/?from=GBP&to=THB&view=1Y

[GuestHouse]

Unless everyone is a smart trader with uncanny skills and a great deal of luck, the peak rate is meaningless if there is (as there has been) continual fluctuation.

Most £ expats in Thailand move their pensions / income from £ to Bht on a continual basis, they therefore obtain the mean value over the year.

Its the mean trading value that matters for all but those uncannily skilled and incredibly lucky few.

[billd766]

The Footsie 100 is now above the level held before the referendum, and the pound is fractionally better today. It will improve.

Better than what? It was 55 before Brexit got underway.

Sandy, you are almost correct.

The last time that the GBP hit over 55 baht, at least according to my daily logging of the GBP/THB exchange rate at KBank was on Wednesday 26th August 2015 nearly 10 months ago. Quite a while before the Brexit gained strength.

Belay that message. It was on Tuesday, 22 September 2015. Over 9 months ago.

The pound peaked at 56 on 24th Aug 2015, last time it touched 55 was on 14th Dec 2015. Speculation on the EU referendum being in June came out on Christmas Eve and pound went downhill from then on.

Speculation on late June 2016 as EU Referendum Date

December 24, 2015 1:51 PM

http://gedlinglibdems.org.uk/en/article/2015/1134488/speculation-on-late-june-2016-as-eu-referendum-date

It depends on which bank exchange rate you are using.

I am using the KBank rate as KBank is the bank where my pension are paid into.

I have the spreadsheets of the Forex going back to 1990 and putting them onto Excel and then into Libre Office was along and boring job but now I can look back at the rates as they were when I first arrived in 1993.

Different banks have different rates and some change several times a day.

[nong38]

Unless everyone is a smart trader with uncanny skills and a great deal of luck, the peak rate is meaningless if there is (as there has been) continual fluctuation.

Most £ expats in Thailand move their pensions / income from £ to Bht on a continual basis, they therefore obtain the mean value over the year.

Its the mean trading value that matters for all but those uncannily skilled and incredibly lucky few.

I usually move it once a year and hope that the rates are as good as can be at that time, the rate is out of my control all I can do is say yes or no, a bit of luck is as handy for me as it is for you. So far I have been lucky, no skill involved whatsoever.

[Jip99]

Unless everyone is a smart trader with uncanny skills and a great deal of luck, the peak rate is meaningless if there is (as there has been) continual fluctuation.

Most £ expats in Thailand move their pensions / income from £ to Bht on a continual basis, they therefore obtain the mean value over the year.

Its the mean trading value that matters for all but those uncannily skilled and incredibly lucky few.

I usually move it once a year and hope that the rates are as good as can be at that time, the rate is out of my control all I can do is say yes or no, a bit of luck is as handy for me as it is for you. So far I have been lucky, no skill involved whatsoever.

I would suggest that your skill came in acquiring sufficient capital/pension so as not be tied to having to take whatever monthly rate was available.

I moved 6 months money just before the vote @52. Had the rate spiked to 53/54 on a remain vote I would have transferred another 6 months worth.

[nong38]

Unless everyone is a smart trader with uncanny skills and a great deal of luck, the peak rate is meaningless if there is (as there has been) continual fluctuation.

Most £ expats in Thailand move their pensions / income from £ to Bht on a continual basis, they therefore obtain the mean value over the year.

Its the mean trading value that matters for all but those uncannily skilled and incredibly lucky few.

I usually move it once a year and hope that the rates are as good as can be at that time, the rate is out of my control all I can do is say yes or no, a bit of luck is as handy for me as it is for you. So far I have been lucky, no skill involved whatsoever.

I would suggest that your skill came in acquiring sufficient capital/pension so as not be tied to having to take whatever monthly rate was available.

I moved 6 months money just before the vote @52. Had the rate spiked to 53/54 on a remain vote I would have transferred another 6 months worth.

You are correct up to a point, when the 2008 crash was upon us i managed to deposit a 5 figure sum into a fixed rate ISA for year at 6.27% that was helpful until it ended and was offered 0.10% when I then moved to 3.25% and 2.35% now the best I can get is 1.85% but it does mean that I can save throughout the year and bring things over at what I think is good rate and only having to make the choice once a year. So for me I am now hoping for a rate rise by next spring, time is on my side. A lot of this though has been brought about by banks/building societies changing the rules on cash withdrawals and me not wanting to let them win, you know the usual thing 2% + £1 etc mounts up, now I just have one fee per year. Its worth it if you get to the position, bit of pain along the way though, then when you get it here make it work for you and not just let it sit there getting .5% or whatever it currently is, look for the Mee Thai Die account over 9 months.

[metisdead]

Off topic posts related to football have been removed.

[sandyf]

Better than what? It was 55 before Brexit got underway.

Sandy, you are almost correct.

The last time that the GBP hit over 55 baht, at least according to my daily logging of the GBP/THB exchange rate at KBank was on Wednesday 26th August 2015 nearly 10 months ago. Quite a while before the Brexit gained strength.

Belay that message. It was on Tuesday, 22 September 2015. Over 9 months ago.

The pound peaked at 56 on 24th Aug 2015, last time it touched 55 was on 14th Dec 2015. Speculation on the EU referendum being in June came out on Christmas Eve and pound went downhill from then on.

Speculation on late June 2016 as EU Referendum Date

December 24, 2015 1:51 PM

http://gedlinglibdems.org.uk/en/article/2015/1134488/speculation-on-late-june-2016-as-eu-referendum-date

It depends on which bank exchange rate you are using.

I am using the KBank rate as KBank is the bank where my pension are paid into.

I have the spreadsheets of the Forex going back to 1990 and putting them onto Excel and then into Libre Office was along and boring job but now I can look back at the rates as they were when I first arrived in 1993.

Different banks have different rates and some change several times a day.

Figures are from tthe Thomson Reuters datafeed.

[sandyf]

The Footsie 100 is now above the level held before the referendum, and the pound is fractionally better today. It will improve.

Better than what? It was 55 before Brexit got underway.

It was 49.5 in February.

It touched 55 last October and was 47.78 in April last year

It was never 55 this year anywhere I looked, I brought money in at the end of May and got 51.8 it may have gone slightly higher but I thought I did well, would have loved 55 but anything 50 and above is ok for me, I guess that anything below 45 causes problems for us all.

Post No 2272.

The pound peaked at 56 on 24th Aug 2015, last time it touched 55 was on 14th Dec 2015.

[Kwasaki]

My happy time was I think September but in 2005 anyway getting 74-75 taking money from UK bank to buy the truck and when atm's were free, doubt if I'll ever see that happening again.

[dabhand]

My happy time was I think September but in 2005 anyway getting 74-75 taking money from UK bank to buy the truck and when atm's were free, doubt if I'll ever see that happening again.

I recall the rate dropping to around 28 in late 1984. Despite that, Thailand still seemed a cheap location. Unfortunately, were the rate to drop to that level again - not an impossibility - it would make Thailand rather expensive for those whose only source of income is Sterling based.

Those with control over their pension funds and who were able to move the majority of their investments into non sterling investments, particularly USD based, should be in a reasonable position at the moment.

QROPS schemes get a mixed press but it does give those with decent sized pension pots the opportunity to cover their local currency requirements. Whereas UK based company pension schemes invariably only provide a sterling income, fine for UK resident pensioners but risky for those resident outside the UK. Even those with index linked pensions will suffer when sterling hits the skids.

[Oxx]

QROPS schemes get a mixed press but it does give those with decent sized pension pots the opportunity to cover their local currency requirements. Whereas UK based company pension schemes invariably only provide a sterling income, fine for UK resident pensioners but risky for those resident outside the UK. Even those with index linked pensions will suffer when sterling hits the skids.

What matters is not what currency the income is in, but in what the pension pot is invested. Yes, final salary schemes (an increasingly rare breed) will be Sterling-orientated, but defined contribution schemes and SIPPS will give you a choice of where to invest your money. For the latter, the options will almost always include non-UK investments, so, in real terms, potentially be unaffected by changes in GBP exchange rate. QROPS in this area hold no particular advantage.

[nong38]

I see the £ has now dipped under the 45 to the bhat now which may be painful for all, let us hope that it does not last to long before the £ starts to rise again, there is nothing we can do about it, exchange rates are out of our control, worrying will not help.

[Jip99]

I see the £ has now dipped under the 45 to the bhat now which may be painful for all, let us hope that it does not last to long before the £ starts to rise again, there is nothing we can do about it, exchange rates are out of our control, worrying will not help.

Personally, I think the gnashing of teeth and wringing of hands is pointless at this stage.

We have seen the first (and IMO the biggest) wave of reaction to Brexit. The Baht (which matters most to most of us) is 10% off it's normal trading levels. The GBP/USD has been hit harder because that is where the speculators have more to gain. The FTSE100 is over 500 points higher than a month ago, even the FTSE250 is only 3% down on the month.

I think it is perfectly reasonable to expect that UK pension will see a reduction in the next few months. 45 Baht to the Pound was experienced in April 2013; anyone recall the reason for the drop? Certainly nothing as momentous as Brexit.

We can speculate as much as we like about how the world will react to Brexit and about trade deals and about immigration and about the Tories desire to achieve the best Brexit results.etc, etc but there is nothing we can do about that and just sitting tight and seeing where the rate is in, say, 3 months time may be the smart move.