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British Expats Pension Hit By Up To 47Pc

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I got a physical letter two weeks ago from Equiniti saying that I have unclaimed assets. They wanted me fill in a form with my name, details and bank accounts. I assumed it was spam mail from people trying to rob me.

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http://www.telegraph.co.uk/finance/personalfinance/pensions/9970998/British-expats-pension-hit-by-up-to-47pc.html

'Statistics compiled by Equiniti, one of the UK’s largest pensions administrators which oversees work pension payments to more than 50,000 expats, show that those in the eurozone have lost 22 per cent of their buying power due to swings in currency markets while those in Australia have felt the greatest decline, at 47 per cent.

The policies of the Bank of England in recent years, in particular, have put pressure on sterling.

The Bank's policy of ultra-low interest rates and electronic printing via quantitative easing have weighed heavily on the currency.

Many of the payments handled by Equiniti, which has compiled the figures for the top ten most popular expat destinations, are for former public sector workers who, it said, receive an average pension of around £5,600 a year.

The largest proportion of these - 12.5 per cent of the 50,000 pensioners - has retired to the eurozone. Someone who retired in 2003 with a £5,000 pension would bring in just under €7,300 ten years ago, while the same would now only buy €5,692.

In Australia, where the currency has strengthened largely due to a boom in natural resources prices of which the country is a major producer, the pension will only buy (AUS)$7,253 compared to (Aus)$13,625.

Country

Equiniti expat payments

March 2013

March 2003

% change

Eurozone

12.45%

5,692

7,292

-22%

Australia

9.83%

7,253

13,625

-47%

US

9.13%

7,400

8,017

-8%

Canada

8.28%

7,645

11,889

-36%

New Zealand

7.61%

8,968

14,577

-38%

South Africa

5.85%

67,163

63,558

+6%

Thailand

4.11%

220,229

344,360

-36%

Switzerland

2.72%

6,970

10,617

-34%

Jamaica

2.69%

710,410

428,358

+66%

Philippines

2.59%

299,936

440,602

-32%

But expat pensioners in South Africa and Jamaica have both seen an increase in the buying power of their pension.

Keith Boughton, director of Equiniti Paymaster, said; “Ten years ago the value of sterling was significantly higher than it is today, and those emigrating abroad for their retirement enjoyed considerable value from their pension.

"A plummeting pound has left many expat pensioners unable to make ends meet and struggling to find other ways to protect the value of their pensions.” '

some will be heading home soon.how will the social welfare sytems cope?

In France most tend to go back for health reasons but given recent publicity over the NHS that may be ending.

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I got a physical letter two weeks ago from Equiniti saying that I have unclaimed assets. They wanted me fill in a form with my name, details and bank accounts. I assumed it was spam mail from people trying to rob me.

Equiniti are legitimate.

Someone impersonating them and asking for your bank account sounds dodgy.

Don't confuse the two!

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Equiniti are legitimate.

Someone impersonating them and asking for your bank account sounds dodgy.

Don't confuse the two!

Thanks. Yes, I need to go and have a read of that letter again.

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Ah, a bit of googling and lots of people are getting these letters. It is to do with shares in Friends Provident. I think I have 200 shares in them but have not bothered because the share price went so low.

Apparently someone got about 36 quid for dividends in those shares - and then Equiniti took a £12.50 charge out of the 36 quid.

http://forums.moneysavingexpert.com/showthread.php?t=3028798&page=6

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Ah, a bit of googling and lots of people are getting these letters. It is to do with shares in Friends Provident. I think I have 200 shares in them but have not bothered because the share price went so low.

Apparently someone got about 36 quid for dividends in those shares - and then Equiniti took a £12.50 charge out of the 36 quid.

http://forums.moneysavingexpert.com/showthread.php?t=3028798&page=6

Seems strange to be chasing such small sums do Equiniti know something ?

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some will be heading home soon.how will the social welfare sytems cope?

That article doesn't mention that pensioners in some countries don't see the pension uplifted after they leave the UK. So their position could be even worse.

http://www.thisismoney.co.uk/money/pensions/article-1709959/The-state-pension-British-people-living-overseas.html

http://www.dwp.gov.uk/international/social-security-agreements/list-of-countries/

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  • 241 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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