Uk State Pension

[mikek]

Has anyone any experience of using the International Pensions Direct Payment for UK state pension? They pay money directly into a Thai bank account and they claim, at favourable exchange rates. Is this true? Does the UK make any charges for this (they do not say on the web site)?

Any comments would be appreciated.

[techno]

I have just started to get my UK Pension paid into my Thai bank account. It is paid on time and with a favourable currency rate, The system is operated for the UK Government by Citibank and there is no charge to you

[lopburi3]

I would think carefully before taking that option if you have credit card needs or may have to pay in other countries however (mail order/tax/new passports and such). Most of us are probably better keeping account open in home country and drawing from that as needed rather than cutting all financial ties.

[ljerams]

My UK Pension has been paid directly to a Thai Bank Account since the facility became available. Very punctual with slightly better exchange rates than any Thai Banks.

Of course the future amounts are frozen as per your first payment amount. I call it theft and to get this unfair "rule" changed there have been many unsuccessful attempts so far.

UK Bank Account costs are also prohibitive I believe?

Edited July 5, 2012 by ljerams

[paulchiangmai]

I have also used this method of payment since it has been available, never a problem, 1st class service.

[JimGant]

Out of curiosity, are you limited to certain Thai banks? And (like for US gov't pensions direct deposited abroad) do you have to physically present yourself to withdraw the money?

Thanx.

[ljerams]

Out of curiosity, are you limited to certain Thai banks? And (like for US gov't pensions direct deposited abroad) do you have to physically present yourself to withdraw the money?

Thanx.

NO but some Thai Banks are better than the others

[Kered]

Does your Thai bank make a charge for the deposit to your account?

[howzat]

Does your Thai bank make a charge for the deposit to your account?

I am told that there is a charge but am waiting for my Thai bank to confirm.

[mikek]

Many thanks for all the comments and advice; most helpful.

[Thailand]

Excellent service.

Quick efficient and fair exchange.

[davyboy]

Does your Thai bank make a charge for the deposit to your account?

Krung Thai Bank charge me 120 baht each time. No big deal really!

[lopburi3]

There should be a currency conversion charge if it is remitted in other than baht of 1/4% in the range 200-500 baht total. This is often not listed but just taken out during conversion process. I would suspect this direct deposit would also have this happen.

[ubonjoe]

Bangkok bank charges $5 at the NY branch (deducted from deposit) plus the .25% deducted after conversion here (200 min 500 max) for direct deposit accounts.

[nong38]

There is a UK Pension pinned thread on the General Topics page you might helpful for future reference.

Today I learnt that there may be a charge for the Thai Bank to recieve your money, I guess you will have to look and see what happens.

[JohnAllan]

I'm not due to draw my pension yet, but a few observations in regard to the question and the replies posted.

I would be surprised if FX at the UK end were more favourable than at the Thai end – they are generally way worse – but possibly the UK pensions dept. has agreed a special rate. I do have my second state pension, from which I was contracted out and later had transferred to a private scheme, paid by International Direct Payment and converted when it hits my Thai account. There is no charge at the UK end, but the deposit fee is B200 and is typical of Thai banks, all of which will normally charge a fee, as do UK banks. It is not a currency conversion fee.

As Ijerams rightly pointed out, the UK government, when it comes to annual pension increases, discriminates against retirees living in certain overseas countries, and has so far resisted all attempts to change that; supported, surprisingly, by a recent European Court decision. Interestingly, UK citizens living, for example, in the US, benefit from the increases, while those in NZ and Australia do not.

For anyone who is not currently drawing their pension, you may defer payment, hence benefitting from future increases; and when you do decide to draw it, may take it in the form of an increased income or a lump sum. As well, if you have family still in the UK, you might consider 'changing' your residence back; though that comes with cons as well as pros.

In utilising a UK bank account, then, unless things have changed since I last lived in the UK, their account fees are not particularly prohibitive – although they are not necessarily transparent, either – and you access your pension via ATM; though that involves an FX rate and a fee each time you withdraw.

And as an aside, and I would imagine a situation unlikely to arise with state pension transfers: there have been recent instances of intermediary banks – with GBP transfers as well as USD – skimming extra fees off the top of the transferred funds, fees that often do not show up anywhere and can be as high as ₤35.00.

[lopburi3]

Actually it is called a Foreign Exchange Fee by Bangkok Bank as show here and is .25% as stated in the range 200-500 baht

http://www.bangkokbank.com/Bangkok%20Bank/Personal%20Banking/Foreign%20Exchange/Pages/Fees.aspx

[billd766]

I have had all my pensions paid into my Kasikorn account and as I check the daily exchange on the days that a pension is paid in (in Thai Baht from the UK) I know the pension amount and the exchange rate I get is always higher than that quoted on the KBank website for TT rates. To my knowledge I have never been charged by the bank for receiving money.

[Maestro]

That's interesting, billd766. An easy way to find out whether your bank receives the remittance in Baht or Pounds and what fee, if any, they apply is to ask the bank for a printout of what they they call credit advice or credit receipt or something like that. This printout is free of charge.

[delboy]

I get my UK State pension paid directly to my Bangkok Bank account. It's always on time, converted to baht in the UK at a rate usually slightly higher than the T/C exchange rate in Thailand, and there are no charges at either end.

I'm well satisfied with the arrangement.