Are you a permanent Spanish resident? If you are a permanent Spanish resident in receipt of a UK statement pension, you may be feeling the pinch by now. The pound is a an all time 30 year low against a range of currencies. Today, 1 Pound will get you Euro 1.11. you may not see an immediate impact on your UK State Pension or private pension, but eventually you will.
Most UK State Pension payments have already been processed for the month of October, but you are likely to see a severe reduction in your November state pension as Pound is set do drop further according to many financial advisers. So, what can you do to protect your income here in Spain?
Savings in Spain
Of course, there are ways of saving money in Spain. The bank may not give you great interests rates on any savings you may have, and it is better to look at alternative ways of saving money. That means cutting back on your expenses.
First of all, you need to know what your expenses are on a daily, weekly, monthly and annual basis. Start taking a look at how much you are paying out and to who you are Paying the money out to. The best thing that you can do is to set up a spreadsheet and identify what you are spending your money on. Is there something in that spreadsheet that you don't need, or is there a cost that you can reduce? Sometimes we spend more money than we think we do. Once we have identified how we can budget better, we can start saving money.
Where Do You Bank?
Not all offshore bank accounts are outrageously expensive, and it could be a good idea to take a look at some of the players in offshore savings market. Nationwide International is one of the better options. They offer a range of currency accounts including Sterling, Euro and US Dollar accounts. The fees are very low, and you will also receive interest on many of the accounts. Even their instant access account has a certain amount of interest.
How do You Bring in Your Money to Spain?
This is certainly an important option to take a look at. Foreign currency transfer companies have become very popular in recent years, and they can actually help. It could be a good idea to not transfer in your UK state pension once month a month. If you can, try to transfer in your UK pension every three months instead. Talk to a specialist on foreign currency rates, and they should be able to help you. Many of these companies forward contract in, or hedge, on better exchange rates. Privately, these exchange rates are not available to you, but you will find that many of the foreign currency transfer companies out there, can help you to access better rates. Look for deal on expat currency exchange and you will find a variety of different companies.
There are many ways to make the most out of your UK State pension. Above all, make sure that any services that you contract are legal, and offer protection. Financial advisers in Spain seem to be found on every street corner, and not all of them are genuine. Make sure that you deal with a registered company which can offer you full financial protection. Remember that investments can go up as well as down. This is not the the time to invest in anything risky, stick to safe and trusted investment plans.