Brexit Retirement Pension Effect

[pegman]

A friend fron Kent once told me British public pension benefits were not very high. Will the devalueing happening to the £ have an profound effect on Brit expats meeting the requirement's for a yearly income verification letter?

[Eclipse]

Yes.

Many will not now qualify for 12 month extensions.

Edited June 27, 2016 by Eclipse

[pegman]

Yes.

Many will not now qualify for 12 month extensions.

That's got to really suck. I wonder if there are countries in SE Asia other than Cambodia that are an option?

[champers]

The exhange rate for Baht to £ has dropped quite dramatically from Friday on, but many Brits feel that the fall in £ Sterling is a temporary glitch. Let's hope so. The fall in the value of the Rouble was far more dramatic, incidentally.

[Jingthing]

They can still qualify using the combination method.

For example, pension of 600K plus Thai bank account of 200K meets the requirement.

[JustinCredible]

My extension was due to expire in July but I decided to renew last Tuesday (21 June). I use the Letter based on Pension Income method).

Had I waited until Friday my income would not have met the minimum level, dispite being "comfortably ove the minimum 4 days earlier.

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

I do not see this improving in the near future.

[topt]

My extension was due to expire in July but I decided to renew last Tuesday (21 June). I use the Letter based on Pension Income method).

Had I waited until Friday my income would not have met the minimum level, dispite being "comfortably ove the minimum 4 days earlier.

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

I do not see this improving in the near future.

What do you call "comfortably" over?

Looking at SCB TT rate just now it was just over 47. Prior to Brexit it had risen back up to over 50 but it is not that long ago it was at 47/48 anyway. It may well go lower but it is not there yet.

[Kabula]

Many will not qualify, but what is most concerning is worldwide inflation rising, combined with the possibility of many currencies being devaluated which could affect everyone. Bank stocks currently are bleeding red! The loss of jobs worldwide, low interest rates for many years have had an affect on deposits. Many customers got turned off with the low interest rates and put their money elsewhere.

Edited June 28, 2016 by Kabula

[topt]

My extension was due to expire in July but I decided to renew last Tuesday (21 June). I use the Letter based on Pension Income method).

Had I waited until Friday my income would not have met the minimum level, dispite being "comfortably ove the minimum 4 days earlier.

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

I do not see this improving in the near future.

What do you call "comfortably" over?

Looking at SCB TT rate just now it was just over 47. Prior to Brexit it had risen back up to over 50 but it is not that long ago it was at 47/48 anyway. It may well go lower but it is not there yet.

Last 5 years mid market rate from XE -

30 Jun 2011 00:00 UTC - 28 Jun 2016 01:56 UTC

GBP/THB close:46.91065 low:43.57881 high:56.29465

[jesimps]

My extension was due to expire in July but I decided to renew last Tuesday (21 June). I use the Letter based on Pension Income method).

Had I waited until Friday my income would not have met the minimum level, dispite being "comfortably ove the minimum 4 days earlier.

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

I do not see this improving in the near future.

It's all about confidence in the end. If the country starts pulling together things should start to improve. However, seeing the constant whinging by the "Remain" voters makes me doubt that the nation will be able to unite to see this through. It's almost as though they want the country to go to the dogs just to prove themselves right.

I honestly wouldn't be surprised to see a second referendum.

[alant]

it will effect but the pound has fallen lower before pre Brexit. I am hoping the once the speculators have made their dosh they bump the £ up again but lie others, I must suffer for now.

[tracker]

In the eu or out does not make it sure to have a full pension. I am dutch, and recently it was announced that there was a plan on the table to use the pensionfunds from our country to help the old folks in the poorer countries from the eu. I assume that goes for every rich eu country.

I am about 10 yrs away from my pension. I do not have any confidence in getting any of it. If it comes i welcome it, but i have little hope. Maybe that a nexit can improve the situation...

Good luck to you all

[NanLaew]

Yes.

Many will not now qualify for 12 month extensions.

That's got to really suck. I wonder if there are countries in SE Asia other than Cambodia that are an option?

No. They should go home and help make Britain great again.

[MissAndry]

In the past 20 years the British pound has varied between 35 and 75.

No new records are being set. If you are that close to the edge, you shouldn't be living here.

Now at 47, I'm surprised it isn't much lower with all the turmoil the remainers are causing.

Edited June 28, 2016 by MissAndry

[banglay]

I didn't bury my head in the sand and saw the drop coming so I TX'ed enough money to last me for the next 18 months ....hopefully by the time I need another injection of cash the exchange rate will have found a happy medium. :-) .

I really hope the EU implodes

[DUS]

I'm surprised it isn't much lower with all the turmoil the remainers are causing.

Hahaha, now blaming the Remain side for the mess the Out campaigners caused, are ye? 55555555555

Anyway, regarding the pound, we´ll have to wait for 6-12 months to see the "real" impact, either good or bad.

Edited June 28, 2016 by DUS

[Oxx]

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

Assuming that one has a globally diversified range of investments (and only a fool wouldn't), the GBP exchange rate is pretty much irrelevant. If the pound falls in value, all other things being equal, the value of the overseas investments increases accordingly, and this will be reflected in the valuation.

Furthermore, assuming one's portfolio is diversified across asset classes (as it should be), some classes will actually have increased in value in response to Brexit. In my case, index-linked gilts, Emerging Markets bonds, US stocks, Global infrastructure and Emerging Markets smaller companies have done particularly well over the past few days.

So no, there's no "double whammy" here.

Where there is a potential "whammy", however, is what it likely to happen with interest rates. There is talk of interest rates being cut, and even going negative. This would impact the GAD calculations, meaning a lower limit on the maximum amount that may be withdrawn each year.

[Orac]

In the past 20 years the British pound has varied between 35 and 75.

No new records are being set. If you are that close to the edge, you shouldn't be living here.

Now at 47, I'm surprised it isn't much lower with all the turmoil the remainers are causing.

T/T for Kasikorn under 46 this morning.

[yardrunner]

In the past 20 years the British pound has varied between 35 and 75.

No new records are being set. If you are that close to the edge, you shouldn't be living here.

Now at 47, I'm surprised it isn't much lower with all the turmoil the remainers are causing.

With Nigel Farage lying about exchange rates saying that Brexit was having no effect on exchange rates. When on the day the referendum was announced the GBP rate went from 54 Baht to the pound (The Baht follows the US dollar closely) to 50 Baht to the GBP and recovering slightly to 52 when opinion polls showed remain in front and then going in to freefall after the referendum result was announced and now at 46 Baht to 1 GBP

Boris Johnson (a Donald Trump lookalike and about as trustworthy) lying about what they would do with immigration and now after the event admitting that they will not lower immigration.

Various leave spokespersons saying Brexit would be good for the economy and now the future of the deal to save the steelworks is in jeopardy, stock markets round the world are in freefall putting more jobs at risk and some of the bankers are getting ready to leave London.

And this is mainly the fault of the leave camp !!!!!!

[MissAndry]

In the past 20 years the British pound has varied between 35 and 75.

No new records are being set. If you are that close to the edge, you shouldn't be living here.

Now at 47, I'm surprised it isn't much lower with all the turmoil the remainers are causing.

With Nigel Farage lying about exchange rates saying that Brexit was having no effect on exchange rates. When on the day the referendum was announced the GBP rate went from 54 Baht to the pound (The Baht follows the US dollar closely) to 50 Baht to the GBP and recovering slightly to 52 when opinion polls showed remain in front and then going in to freefall after the referendum result was announced and now at 46 Baht to 1 GBP

Boris Johnson (a Donald Trump lookalike and about as trustworthy) lying about what they would do with immigration and now after the event admitting that they will not lower immigration.

Various leave spokespersons saying Brexit would be good for the economy and now the future of the deal to save the steelworks is in jeopardy, stock markets round the world are in freefall putting more jobs at risk and some of the bankers are getting ready to leave London.

And this is mainly the fault of the leave camp !!!!!!

When Britain went to war to defeat Germany in 1938, did everyone worry about the cost of their freedom?

Or even the risk to their life?

[Orac]

In the past 20 years the British pound has varied between 35 and 75.

No new records are being set. If you are that close to the edge, you shouldn't be living here.

Now at 47, I'm surprised it isn't much lower with all the turmoil the remainers are causing.

With Nigel Farage lying about exchange rates saying that Brexit was having no effect on exchange rates. When on the day the referendum was announced the GBP rate went from 54 Baht to the pound (The Baht follows the US dollar closely) to 50 Baht to the GBP and recovering slightly to 52 when opinion polls showed remain in front and then going in to freefall after the referendum result was announced and now at 46 Baht to 1 GBP

Boris Johnson (a Donald Trump lookalike and about as trustworthy) lying about what they would do with immigration and now after the event admitting that they will not lower immigration.

Various leave spokespersons saying Brexit would be good for the economy and now the future of the deal to save the steelworks is in jeopardy, stock markets round the world are in freefall putting more jobs at risk and some of the bankers are getting ready to leave London.

And this is mainly the fault of the leave camp !!!!!!

When Britain went to war to defeat Germany in 1938, did everyone worry about the cost of their freedom?

Or even the risk to their life?

Didn't someone else start that war in 1938 and we just joined in?

[overherebc]

In the past 20 years the British pound has varied between 35 and 75.

No new records are being set. If you are that close to the edge, you shouldn't be living here.

Now at 47, I'm surprised it isn't much lower with all the turmoil the remainers are causing.

Beginning of 2013 it was at 44. Can't remember if there was so much panic amongst the ex-pats here then, or was there??

[pegman]

My extension was due to expire in July but I decided to renew last Tuesday (21 June). I use the Letter based on Pension Income method).

Had I waited until Friday my income would not have met the minimum level, dispite being "comfortably ove the minimum 4 days earlier.

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

I do not see this improving in the near future.

Nice move.

[Suradit69]

My extension was due to expire in July but I decided to renew last Tuesday (21 June). I use the Letter based on Pension Income method).

Had I waited until Friday my income would not have met the minimum level, dispite being "comfortably ove the minimum 4 days earlier.

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

I do not see this improving in the near future.

"dispite [sic] being "comfortably ove the minimum 4 days earlier."

The difference between the two dates would have been about Baht 5000 per month or less around the Baht 65,000 level. Not sure if that can be described as "comfortably over."

Interesting how many people have claimed they would never keep large amounts in Thai banks because they weren't as safe as farang banks and/or the value of the baht could plummet, etc. Costly mistake for some due to typical farang arrogance. Of course anyone who has investments anywhere in the world has probably taken a hit due to the short-sighted decision to hold this referendum and the ridiculous nationalistic vote.

Hopefully Americans will keep this in mind before voting for Trump.

Edited June 28, 2016 by Suradit69

[hobobo]

In the past 20 years the British pound has varied between 35 and 75.

No new records are being set. If you are that close to the edge, you shouldn't be living here.

Now at 47, I'm surprised it isn't much lower with all the turmoil the remainers are causing.

With Nigel Farage lying about exchange rates saying that Brexit was having no effect on exchange rates. When on the day the referendum was announced the GBP rate went from 54 Baht to the pound (The Baht follows the US dollar closely) to 50 Baht to the GBP and recovering slightly to 52 when opinion polls showed remain in front and then going in to freefall after the referendum result was announced and now at 46 Baht to 1 GBP

Boris Johnson (a Donald Trump lookalike and about as trustworthy) lying about what they would do with immigration and now after the event admitting that they will not lower immigration.

Various leave spokespersons saying Brexit would be good for the economy and now the future of the deal to save the steelworks is in jeopardy, stock markets round the world are in freefall putting more jobs at risk and some of the bankers are getting ready to leave London.

And this is mainly the fault of the leave camp !!!!!!

When Britain went to war to defeat Germany in 1938, did everyone worry about the cost of their freedom?

Or even the risk to their life?

MissAngry (far better than Andry), will we have to rewrite history books again? I didn't know Britain went to war with Germany in 1938, maybe I'm a bit slow, or are you too fast?

[NoshowJones]

I am not on retirement extentions, but surely this is something Thai authorities could take into consideration over the Brexit issue.

Thailand could easily instruct all their IOs to allow for this. But they won't and that's another reason why we are not "guests" in this country.

[NoshowJones]

Yes.

Many will not now qualify for 12 month extensions.

That's got to really suck. I wonder if there are countries in SE Asia other than Cambodia that are an option?

No. They should go home and help make Britain great again.

When was Britain ever great? Every government has hammered the working class, especially the hypocritical Labour Party, while making themselves all rich.

[gamini]

My extension was due to expire in July but I decided to renew last Tuesday (21 June). I use the Letter based on Pension Income method).

Had I waited until Friday my income would not have met the minimum level, dispite being "comfortably ove the minimum 4 days earlier.

There is a double "whammy" for Brits that use QROPS as well. First the Pension fund held in QROPS will reduce in value when it is next reviewed, resulting in a lower income, and secondly the lower (much) rate of Exchange has the second impact.

I do not see this improving in the near future.

It's all about confidence in the end. If the country starts pulling together things should start to improve. However, seeing the constant whinging by the "Remain" voters makes me doubt that the nation will be able to unite to see this through. It's almost as though they want the country to go to the dogs just to prove themselves right.

I honestly wouldn't be surprised to see a second referendum.

How absolutely pathetic. The "brexits" have caused all current problems and they try to blame it on the the "remains".

[Orac]

I am not on retirement extentions, but surely this is something Thai authorities could take into consideration over the Brexit issue.

Thailand could easily instruct all their IOs to allow for this. But they won't and that's another reason why we are not "guests" in this country.

Why should Thailand change or ignore its rules specifically to accommodate one country.

[NoshowJones]

I am not on retirement extentions, but surely this is something Thai authorities could take into consideration over the Brexit issue.

Thailand could easily instruct all their IOs to allow for this. But they won't and that's another reason why we are not "guests" in this country.

Why should Thailand change or ignore its rules specifically to accommodate one country.

Because we are "guests" here.