Our Currency News
Do you have a UK pension?
Find out more about how moneycorp can help you make the most of your pension pot in Australia
If you’ve turned your back on grey British winters and retired in Australia, you may need to make arrangements to have your UK pension payments converted into Australian dollars. Often the fixed income from a pension means budgets can be tight and it’s important to make sure you’re making the most of your money. Using a foreign exchange specialist rather than your high street bank can often make a significant difference to the amount of dollars that arrive in your account.
If you like to have some certainty so you can plan ahead, there are simple tools that allow you to protect your money against movements in the exchange market. You can set up a forward contract to fix a rate for up to two years, and this means you’ll always know just how many dollars you’ll get for your pounds. (A forward contract may require a deposit.) You can even automate the payments with a regular payment plan that works like a Direct Debit, collecting funds from the UK, converting them to Australian dollars and depositing them into your account according to whatever schedule works for you. If you don’t want to go down the road of fixing the rate, you can still set up a Regular Payment Plan and opt whether you want to fix just one aspect of the transfer; either the amount of sterling leaving the UK or the amount of dollars arriving in your account to make sure you can cover all your bills.
A specialist provider can also offer guidance and provide more information on the currency market. If you have an understanding of the fluctuations within the market, you might want to opt for a market ‘Order’ to target a specific rate that is not currently available. This is a tool which monitors the foreign exchange market 24/7 on your behalf and your deal automatically takes place if your desired rate is achieved. This can be a worthwhile tool if you have the time to wait for the market to perform the way you hope; however with the foreign exchange market there are no guarantees on timing or performance. This means that market orders are not an alternative to managing your regular payments but they may be useful to consider for any one-off payments you need to make occasionally when time is on your side.
However you decide to manage your pension transfers, you will also have the option to manage it all online, or speak to one of our experts if you’d prefer. Our team can provide guidance and support, and keep you informed of additional information available to you such as regular market updates and alerts. It’s worth learning more about the currency exchange market and how a specialist provider can help you so that you can stretch your pension as far as possible. An easy-to-understand, reliable service which offers you value and convenience also means more time for you to enjoy the golden years you’ve worked so hard for.