FenTiger

That's where it's confusing. They know she is Hungarian because she sent them a photograph of her passport (signed by doctor). Like her we are "overseas" now.
Bit of a worry for me because I have one other work pension and two smaller private pensions. All have been informed I have moved to Hungary. No issues so far, still getting mail.

scrubbedexpat142

I don't think your pensions will be an issue, save needing a UK bank account. Just out of interest my CAA (Government) pension was paid direct to World First in London who did the conversion and transfer to my bank in Budapest. If their issue is that she is Hungarian then I would have thought they would have known that from the off (from the original application?). If this is the issue then I don't know how you can get round it. Personally I suspect that its the "now overseas" that is their problem.

FenTiger

Yes, I agree they should have known from the off. It was set up before Hungary joined the EU in 2004. I forget if my wife's first husband took out a private pension with the same agent.
I have drafted a response for my wife but will review it tomorrow before she adds dates for when she sent her four lots of forms and documents.
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Sachina

You don't need a UK bank account. Your pensions both State and private can be paid directly into your bank account in the the country where you live. I know this because for years my UK OAP and a private annuity were paid into my South African bank account. They shouldn't charge you for doing this.

duztee

This is true for State Pension, they will pay to a foreign bank account.
But may not be true for Private Pension providers, two of mine will only pay my funds to a UK Bank, this might be because they are both relatively small amounts which are not worth the hassle of converting each month. especially to the less popular currencies like Forints.

This aside I still do not understand how SF can refuse to pay the funds into a UK bank irrespective of where the account holder actually resides.

Sachina

With the UK State Pension you can arrange to have it paid every three months instead of every week. My annuity is paid into my bank account every 6 months rather than every month.

Peter_in_Hungary

Its not that long ago that UK OAP was sent out as a cheque to those living in Hungary and this cheque had to be presented to your bank. Now you are right it can be paid directly into you bank account

When money is transferred to a different currency area it is the receiving bank that does the conversion not the sending bank. The reason that pension providers do not like sending money abroad (outside the BACS area) is that they get charged for the transfer and it would be too expensive to cross charge this to the pension holder. - They just don't want the cost and hassle.

duztee

Since Scottish Friendly's head office is in Glasgow does this mean that should Scotland ever achieve it's aim of gaining independence from the UK, that every one of their customers living south of the border will then be classed as 'living abroad' ?

scrubbedexpat142

Same for me. My state pension is paid direct to Hungary but my other pension providers insisted on a UK destination & payment in GBP.

Sachina

When I lived in South Africa both my state pension and annuity were paid into my South African bank account in Sterling. My SA bank then converted it into Rand

scrubbedexpat142

How good was the conversion rate?

Sachina

Usually on par or better than in the UK. I have a GBP account here in Hungary and have money transferred from the UK in Sterling. You always get a much better rate than converting into HUF in the UK.

scrubbedexpat142

Hmmm, interesting. I got 405 in the UK today, OTP would have given me 396.
Of course, other banks are available!

FenTiger

Just imagine the ballyhoo if that happened. Scottish Friendly would have to relocate to the auld enemy or break up to become English Friendly!

FenTiger

All the above clearly indicates some pension providers are in a right muddle. From a financial point of view keeping clients means they can earn interest from your pension pot, irrespective of how small as long as they've got thousands of clients like me it can be a significant amount.