Anyone who is considering retiring to a different country from one in which they spent a period of their working life may need to repatriate funds to their new country of residence. If regular payments, such as an individuals pensionÂ is required overseas they need to be converted into a local currency this can be an expensive process without the help of a FCA (Financial Conduct Authority) regulated foreign exchange broker. Although high street banks and other outlets offer money transfer services they often charge relatively high fees and give poor value exchange rates. A specialist foreign exchange broker will not only keep fees to a minimum, they will provide the best possible exchange rates, ensuring client money is not wasted on unnecessary fees and charges.
It is important to exercise control over pension payments when converted into another currency because contributions have accrued for a number of years and it is likely that much work has gone into the selection of investments to ensure a pension that provides maximum benefits. Upon maturity it would reverse years of hard work if charges and poor exchange rates reduced the value of a pension. Foreign exchange brokers are experts in their industry and will ensure that this scenario does not arise.
John Champion 63, originally from Basingstoke, receives a monthly payment of ÂŁ1,500, which requires conversion into Euros following his retirement to Spain. When offered a conversion rate of 1.1811 from a high street bank he sought the advice of a specialist broker who was able to provide a rate of 1.2075. This raised the value of his pension payment from â‚¬1,771.65 to â‚¬1,811.25. Â Whilst the increase in value of â‚¬39.60 represents a gain of 2.2% the gain is worth â‚¬475.20 to John on an annual basis, all because he was willing to seek the services of a specialist broker.
It is possible to set up a recurring payment scheme with a broker so that the stress of worrying about exchange rates is eliminated. The service can be extended to cover regular payments such as wages or school fees. A specialist broker can also be used if a lump sum is being invested and a currency exchange is required. It is especially important not to create a drain on pension resources through inefficient use of exchange rates because to maximize the value of an investment it is necessary to protect its capital value.