UK Government Pension

[Lyric]

I seem to know that some of you have your Government Pension (OAP not from public sector) paid direct into a Spanish Bank.
Are any of you in a position to know how long the transfer process takes, and has this changed with the change in European Law on January 1st ?

[El Cid]

It's normally 3 working days and we haven't noticed any changes recently.

What's the law you are talking about?

Sid

[Lyric]

This one
http://tinyurl.com/7ha5tyj

I am not aged enough yet but my Company Pittance can still take up to seven days elapsed, four working days as a minimum.

[peteroldracer]

Mine arrives on the same day as sent - working it back to when it began, it always has as far as I know. Maybe it is more to do with the bank you use here?

[Campo Steve]

With regards to that law, why does it talk about "business days" rather than just days. If it is all happening electronically, where do business days come into it?

[John & Kath]

With regards to that law, why does it talk about "business days" rather than just days. If it is all happening electronically, where do business days come into it?

Thats a very interesting concept since the computors churn on 24/7/365 does that mean that the banks do not get interest on our money that sits in their account over the weekend, bank holiday, etc.
With regard to my "State Pension" old age pension from the UK that is paid every four weeks direct into my Spanish account at the very best exchange rate and arrives most months on the fourth Tuesday. When UK bank holidays intervene it has arrived early. We were paid weekly in arrears in UK but when you ask for the transfer to Spain it has to be 4 weekly in arrears and depending on when you make the change can be 5-6 weeks between the last weekly payment and the first 4 weekly one in Spain. Once it has settled it is like clockwork count four Tuesdays and it is there. I have no knowledge of when the government post it to me. With my government pension (Civil Service) which is at my choice paid into my UK account and I transfer when rates are favourable. I ring one of perhaps 3 FX dealers around 11.00 and agree a rate, transfer from my UK account online to them with fastpay. They generally have the cash within the hour and transfer the euro to my Spanish account and it generally shows up after 14.00. I have even drawn on that cash same day. Of course Spain has many more Bank Holidays, Fiestas and Puente days so that does mess up the best laid plans but in general works well.

[Lyric]

My Wife's "State Pension" is the same, paid like clockwork.
My Company Pittance was paid, like clockwork, on the 1st of the month when living in England. I used to have it paid into my UK account and transfer as required using Nationwide. When they moved the goalposts I changed to direct transfer to my Spanish Bank (SolbankSabadell) in Euros.
This was supposed to take three working days. In reality it is never less and usually more.
The current record is seven working days.
When I saw the news about the EU Directive I thought at last all my budgeting problems are swept away.
When trying to live on not very much an extra three days makes a difference, particularly when those three days usually include the direct debit for electricity.
I must find a copy and ram it under my personal manager's nose and see what he says.
The local branch had never heard of it.

[Lyric]

As a drift, In the UK my company pittance was paid, like clockwork on the 1st of the month, with my payslip from the administrators arriving on the 2nd.
Here the payslip can be quite a lot later than payment into bank however this month I have received my payslip but await funds ! How is it possible for mail to be quicker than electronic transfer I find myself asking.
I hate going to Nerja but that is where my bank resides for the moment.

[Spud]

Hi, If you´re like me having to live of the pittance called the UK state pension you will be finding it very difficult to manage at the moment. There is a group of people who lobby the UK governemnt to try and get the state pension increased to a livable standard. the website is www.pensionerscampaignuk.org.uk they also have an e-petition going, the more signing the better. I´ve sent this out to all my contacts, its worth a look and our support for the benfit of all UK pensioners.

[morlandg]

With regards to that law, why does it talk about "business days" rather than just days. If it is all happening electronically, where do business days come into it?

I get my NHS pension paid here in Spain (and taxed here incidentally!) and it is paid on the 7th of each month. For the first time in 10 years I found that this month the money appeared in my Unicaja account on the 10th - a Saturday!! Normally it would be the next 'working' day ie Monday. I don't know the significance, if any, of this but it is unusual in my experience.

[TerryC]

Hiya Spud
Thank you for telling us about the UK Pensioners campaign. I went onto their site and what an informative site it is and what they are trying to do for UK pensioners and us Expat pensioners is wonderful. After us pensioners got shafted once again in yesterday's budget we all need a co-ordinated group to try and stand up for us. I think the truth of the matter is that the government (of all parties) would like us all to go and die the day before we retire and hence get out of the need to waste money on us has beens. After all most of us have only contributed for 40/50 years and once we stop contributing we are of no use to anybody especially the young who class us all as scroungers. I've registered with the website and signed the petition and I strongly suggest that everybody do likewise. It is no use sitting there complaining when there is something that can be done. United, pensioners can form a formidible force against the injustice the successive governments have heaped upon us. You must realise that UK pensioners are one of the worst paid in Europe and yet GB is the third richest nation. And expat pensioners are hit even harder because we dared to move within the EU resulting in us getting only the basic state pension and nothing else.

[annfoto]

And expat pensioners are hit even harder because we dared to move within the EU resulting in us getting only the basic state pension and nothing else.

True

After us pensioners got shafted once again in yesterday's budget

How?
The "Granny Tax Grab" does not apply to ex-pat pensioners

[El Cid]

And expat pensioners are hit even harder because we dared to move within the EU resulting in us getting only the basic state pension and nothing else.

Many pensioners moan about their pension. I am not one of them.

I have just had my pension statement for 2012/13 and it has increased by just over £15/wk which is £783/pa.

I'm not going to moan about that!

Sid

[Mowser]

The "Granny Tax Grab" does not apply to ex-pat pensioners

If you are in receipt of a state pension and another pension, your state pension will be subtracted from your total taxable allowance. Your tax code will therefore go down. Mrs Mowser's tax code has been reduced to 240L.

Once she hits 65, the age related allowance will have been frozen for 4a few years. It therefore will affect ex-pat pensioners.

[El Cid]

The "Granny Tax Grab" does not apply to ex-pat pensioners

If you are in receipt of a state pension and another pension, your state pension will be subtracted from your total taxable allowance. Your tax code will therefore go down. Mrs Mowser's tax code has been reduced to 240L.

Once she hits 65, the age related allowance will have been frozen for 4a few years. It therefore will affect ex-pat pensioners.

It only affects expats if they have government pensions which are taxed in the UK and reductions in the age allowance would affect them.

If they also have the state pension then that is taxed in Spain and doesn't affect the issue.

Anyway. a "tax grab" suggests that pensioners are having to pay more tax as a result. That's not true, their allowance has been frozen so that will not result in them paying more tax.

In future years they will pay more tax than they would have done if the government had increased the allowance but that's not the same as a "tax grab".

Let's not forget that state pensions are index linked - most other incomes are not.

Sid

[Mowser]

Sid. Correct. We have government pensions and I was basing my info on that.

[El Cid]

Sid. Correct. We have government pensions and I was basing my info on that.

But your UK state pension should be taxed in Spain - that will save you money as you almost certainly won't have to pay tax on it as you get a whole new set of allowances to set against it!

Sid

[Mowser]

But your UK state pension should be taxed in Spain

Yes - once they have given us our Spanish allowance there will probably be little or nothing to pay.
Our Government pensions are taxed in the UK and are not taken into consideration by the Spanish system.

When our P60 arrives, I scan it and send it back to the UK - along with a note of tax paid on our building society interest. We usually get the HMRC rebate paid into our UK account in May.

[El Cid]

You've lost me Dave.

Are you declaring your UK State pension in Spain - even if there is no tax to pay?

If HMRC are changing your tax code because of it then it suggests that you are being taxed on it in the UK (indirectly through your tax on the Gov pension).

Normally you go through the FD9 process and get the state pension paid gross and excluded from your UK tax code and then declare it in Spain.

Sid

[katy]

Not on state pension yet but I fail to see why pensioners in the UK should have a higher allowance than say someone in their 30's. A young person working and earning 30,000 has overheads, probably a couple of thousand in travel to work costs, more clothing for office etc. Why should a pensioner earning the same expect to get a couple of thousand more tax allowance? Surely on retirement their needs are smaller