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Pension Payments

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Posted: Thu Jan 11, 2018 12:02pm
19 replies285 views7 members subscribed
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shanet123

Posts: 19

Location: Villamartin

1 helpful posts

Hi, i will be moving to Villamartin early 2019.

I am planning to have my pension sent over monthly to my Sabadell bank via my Halifax bank

I am selling my home in England and will keep my bank open with a relatives address

Is this the best option. 

I Would be interested to hear other peoples experiences and if there are any better options

Regards

Shane

john 114

Thu Jan 11, 2018 1:48pm

Posts: 8

Location: La Marina

6 helpful posts

Posted: Thu Jan 11, 2018 1:48pm

If it is a state pension have it paid directly into Spanish Bank,avoiding currency charges.

jimtaylor

jimtaylor

Forum Ambassador for Almoradi

Thu Jan 11, 2018 4:47pm

Posts: 912

Location: Almoradí

1039 helpful posts

Posted: Thu Jan 11, 2018 4:47pm

And in addition (I don't know the Sabadell setup), you'll probably get free banking. Just make sure you change it from a non-resident to resident account when the time comes.

shanet123

shanet123

Original Poster

Thu Jan 11, 2018 6:31pm

Posts: 19

Location: Villamartin

1 helpful posts

Posted: Thu Jan 11, 2018 6:31pm

john 114 wrote:

If it is a state pension have it paid directly into Spanish Bank,avoiding currency charges.

Hi John,

Thank you for the response

It's a private pension

Regards

Shane

shanet123

shanet123

Original Poster

Thu Jan 11, 2018 6:32pm

Posts: 19

Location: Villamartin

1 helpful posts

Posted: Thu Jan 11, 2018 6:32pm

jimtaylor wrote:

And in addition (I don't know the Sabadell setup), you'll probably get free banking. Just make sure you change it from a non-resident to resident account when the time comes.

Thanks Jim 

operationdinnerout

operationdinnerout

Forum Ambassador for Altea, Beniarbeig, Benidoleig, Denia and Ondara

Fri Jan 12, 2018 11:24am

Posts: 232

Location: Beniarbeig

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Posted: Fri Jan 12, 2018 11:24am

Just came across this and I'm in a similar position later this year. I had planned to have my pension paid into my UK bank then transferred to Spain using Transferwise. They give you the mid market exchange rate which is surely a lot higher than Sabadell would use. Yes they charge a very small fee but I'm fairly sure I'd net more euros using this method. Thoughts? 

Also as an aside, when I told Natwest I was moving to Spain they were quite happy for me to retain my UK account. 

jimtaylor

jimtaylor

Forum Ambassador for Almoradi

Fri Jan 12, 2018 11:36am

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Location: Almoradí

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Posted: Fri Jan 12, 2018 11:36am

Transferwise will certainly give you a better rate than a bank, and doing it that way lets you choose to transfer when the exchange rate is good - but can you be confident of predicting which way the rate is going?

Having your pension paid by your provider direct to Spain should give you a possibly better rate than Transferwise, saves you the hassle of doing the transfers, gets you free banking, and effectively averages out the rate during the year.

operationdinnerout

operationdinnerout

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Fri Jan 12, 2018 11:50am

Posts: 232

Location: Beniarbeig

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Posted: Fri Jan 12, 2018 11:50am

Jim hi. I'm confused by your post, is it not a little contradictory? In your first para you say Transferwise will give a better rate than a bank but then in your second you say the pension provider paying it direct to a Spanish bank will deliver a better rate?  Are you sure?  Have you tested this? 

P.s. the pension provider will pay on set dates so they have no control over exchange rate fluctuations at all. 

Steve

jimtaylor

jimtaylor

Forum Ambassador for Almoradi

Fri Jan 12, 2018 12:38pm

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Location: Almoradí

1039 helpful posts

Posted: Fri Jan 12, 2018 12:38pm

Every bank who's fees and exchange rates I've seen has been worse than Transferwise. 

Our DWP pensions and my wife's private pension come into our Spanish bank at a better nett rate than I could get from Transferwise.

operationdinnerout

operationdinnerout

Forum Ambassador for Altea, Beniarbeig, Benidoleig, Denia and Ondara

Fri Jan 12, 2018 12:52pm

Posts: 232

Location: Beniarbeig

111 helpful posts

Posted: Fri Jan 12, 2018 12:52pm

Jim I'm not doubting you..........but! You're saying that the DWP get a better net rate on transfers to a Spanish bank than Transferwise? That really surprises me. Would it be possible to verify this on the next pay date by checking on the Transferwise website whether they would have paid less? I'd certainly appreciate it because my DWP payments start this year.

Cheers, Steve

ps. if correct, could it be that they have an international agreement of some kind?

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