Expat Pensioners Waste £300 Million on Bank Charges
February 21st, 2007
British citizens living abroad could be wasting over £300 million a year when claiming their state pensions because of unnecessary bank charges and fluctuating exchange rates, according to HIFX.
The figure is based on the average retiree expenditure on bank charges each year of £300 multiplied by the number of retirees living abroad – 1,03,600 according to figures from the Department for Work and Pensions from May last year. The DWP also confirms that the maximum weekly state pension for a couple living together is £84.25 each a week which equates to £730.16 a month in total.
HIFX points out that the average retiree living abroad claiming their pension through their bank are charged between £10 and £30 – plus average receiving charges of 0.5% of the total value of the monthly pension in many cases. The FX specialist also highlights fluctuating exchange rates, so the value of their pension can go up and down continually throughout the year. The 37,240 retirees living in South Africa, for example, have been exposed to one of the world’s most volatile currencies – the South African Rand (ZAR).
“HIFX’s regular payment service means retirees no longer have to pay expensive bank charges when making regular payments overseas,” said Mark Bodega, Marketing Director at HIFX. “The plan also means retirees know they will be receiving the same amount of income every month, which means they can budget and save themselves the worry of currency fluctuations eating into their pension.
“Everything is done via direct debit and means the customer doesn’t even have to speak to their foreign or UK bank, therefore saving again on high call rates. HIFX arranges everything on their behalf and gives retirees living abroad real peace of mind.”
The top ten countries for British retirees, and the number of claimants in each, are listed below (Source: DWP):
- Australia – 241,050
- Canada – 153,820
- USA – 128,430
- Republic of Ireland – 102,530
- Spain – 75,380
- New Zealand – 46,680
- South Africa – 37,240
- France – 34,580
- Italy – 33,240
- Germany – 31,910
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