whatadiva

Please no judging.

When collecting UK pension, does it go to a USA bank account OR it goes to your UK bank account then you have to make the wire transfer?

Also, collecting disability benefit, if you move from UK to USA, is that not possible either?

I read the UK gov are to stop anyone that moves abroad and tries to collect and claim their disability allowance.

Nutmegger

You can choose to have your UK pension wired directly into a US bank account, with no associated fees.

Can't help you on the disability, but it makes sense that would stop upon leaving the country.

mikelincs

You are not entitled to UK benefits if you move outside the EU, people who move within the EU do get SOME of their benefits, notably DLA, paid while they live in another EU country.

bruceba

Not judging but aren't you breaking the law by collecting certain benefits when you leave?

nun

If you move to the US you won't qualify for UK disability benefits, you might qualify for benefits from the state you move to though, it will depend on the state.

Are you a US citizen or married to one? If you can move to the US have you thought about healthcare and the costs of insurance?

JAJ

Some U.K. benefits are only available to current residents of the United Kingdom. If you're not U.K. resident, you're not eligible.

The most cost effective way to handle pension is normally to have it paid to a U.K. bank account and make the wire transfer occasionally. Regardless, you must account for all receipts on your U.S. tax return. If this pushes your bank account balance over the FATCA/FBAR reporting thresholds, you must make the relevant reports to the IRS/U.S. Treasury.

mikelincs

I believe that the best way to have a UK pension paid if you live in another country is to have the pension people pay it direct into your US bank, avoids all charges at the UK end.

Nutmegger

I have to disagree with this. The UK wires it over at no cost, and the US bank levies no fees -- all very simple and efficient.

mamasue

I agree....when I qualified for my UK pension, I was given the option of UK bank or US bank.
I picked my US bank....easier, smoother, and cost effective.
If you're trying to claim disability benefits you're not entitled to... the UK will know, as they need your USA address for your pension.
BTW... what makes you think you'd be entitled to UK disability benefits if you live in the US??

mikelincs

I suspect the OP is asking because parents are talking of joining them in the US, and it's really about the parents pension and benefits.

MidAtlantic

Would those who have their payments made direct to the US like to share the exchange rates you get? I will need to decide very soon how I have mine paid. Thanks

nun

The biggest question is healthcare. If we are talking about anyone over 65 who does not qualify for Medicare then it's going to be very expensive.

mikelincs

I believe it's usually the interbank rate, not possible to quote as it changes daily.

Joe_Lowry7

I believe it will be difficult for you to work out how good or bad the exchange rates people are getting as it depends on where the inter bank rate was sitting at the time they bought their US dollars.

The best advice I can give is whatever company you choose to move funds across ask them to set a spread on each transfer, meaning each time you transfer funds you know you may be 0.5% off the rate they buy at or 1% off the rate they buy at. This way you know when the rate fluctuates you are always guaranteed a set spread. When you look online and see the indication currency rate you know what roughly to expect when you get a quote from your provider.

Be aware some companies will "set" a spread and say it will never move and before you know it when you get comfortable they slowly draw the spread out, profiting more from your transfer.

I hope this helps you.

Nutmegger

Or you can just tell the UK gov that you live in the US and want your pension paid directly into your US account and it will show up at whatever interval you request it, in dollars, with no fees on either end, no time wasted messing around. In addition, I'm long gone so don't have UK bank accounts -- don't know if the OP has retained a UK bank account. As mikelincs says, you'd have to start analysing each deposit to figure out rates, but there has never been anything seemingly untoward to make me want to spend time on doing that or work out some convoluted route to get my money at some fractionally improved rate.