Where to have UK pension paid?

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Will have to decide in the near future whether to have my UK pension paid into my German or UK bank account. If paid into the German bank, what exchange rate is used (e.g. is it the market rate on the day of transfer or something else?) and are there additional transfer charges?

If paid into the UK acount I would have to transfer fairly regularly anyway, and not being the most organised person ever, am wondering if it's worth the extra bother. 

Would appreciate experienced opinions!

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Thank you Fraufruit, so do I understand that Worldlink is the default transfer system used by the UK?

 

A bit of browsing led me to a similar question by someone elsewhere:

https://www.expatfocus.com/Forums/viewtopic/t=22549/

 

I'm beginning to think that unless one is super efficient about tracking exchange rates and the ins-and-outs of the various exchange services, then it's hardly worth the effort to do it yourself. 

But if anyone has better advice I'd be grateful to hear!

 

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Yes - Worldlink is what the UK State Pension uses.  Works OK for me at least.

 

To relate what Panda told me - if you have it paid directly to your German bank account (such as via Worldlink) the Finanzamt will accept the amount that arrived there.  If you have it paid into your UK bank for your Steuererklärung the FA will want to use some exchange rate on that day (not necessarily favourable to you) regardless of what rate you get when you actually do transfer (on the other hand if you choose some reasonable exchange rate they might believe you)..

 

HOWEVER, if you pay for public health insurance here (example TK) you will find that they will want to take your payment in GBP and apply a utopian exchange rate (in their favour of course) to calculate how much you will pay in health insurance.

 

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Thank you HEM, I'll probably go with the most straightforward way, pay directly here, when the decision is due.

 

Just a supplementary - can one change one's mind at a later date?!

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5 hours ago, Feierabend said:

Thank you HEM, I'll probably go with the most straightforward way, pay directly here, when the decision is due.

 

Just a supplementary - can one change one's mind at a later date?!

Yes, you can change method of payment. Just need to write to UK pensions. They need snail mail instructions. 

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@Feierabend Beware that it can take some time after applying for your UK pension before the money appears!

 

I worked until I was 65 1/2 (the normal retirement age for my DOB in DE).  UK pension was payable from my 65th birthday.

You have to apply via the Germen Rentenversicherung office (this all assumed GB is in the EU!).  They told me to wait until my 65th birthday - which I did (I still had my employment income).  So shortly after my birthday I visited the local RV office in our town & the lady filled out the appropriate form online, printed it out for me to sign & off it went the RV Berlin who process EU pensions.

 

After nothing happened for 3 months I phoned the UK pensions office who had recevied nothing from Berlin.  I went to local RV office who gave m,e a phobe number for Berlin.  After being passed from number to number I found someone "zuständig" who took details.  When they phoned back they said something about "schiefgelaufen" and would work on it immediately (which they did).  2 weeks later I phoned UK & they HAD received the forms from Berlin.

 

However, to be compatible with RV Berlin the UK folks also did nothing for 3 months - untill I phoned them whereupon my case was marked for "immediate action".  Things moved fast after that.

Thus it was 7 months after applying that the back payments arrived in my German account.  Since then the regular payments have been without problem.

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Thank you everybody. The wheels are now in motion and must just now attempt to remember all my past addresses for the form, and wait for the Hamburg dept. to get into gear for the UK part.

 

Re. possible causes of delays: at the Deursche RV I was asked to choose whether to either wait to receive the German pension until they can calculate the final sum after I get my final wage, when all contributions will have been paid in full, or to allow them to calculate the final amount immediately, i.e. 3 months before the pension is due, based on an average of what the contributions normally are. The latter would result in the pension being paid out on the first due date, the former will result in a delay of 3 months. The issue is probably only important if you have very varying contributions each month. (I may not have explained that very well but maybe that is what has happened to other people.) Eventually back payments will be made.

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