Currency gamblers drive down pension spending power

Currency traders have staked billions betting against the value of the Euro and Pound to make huge profits while plunging exchange rates see British expats having their pension payout spending power shrink.

At least 40,000 bets worth £5 billion has been staked on the Euro falling against the value of the US dollar in the short term that has pushed the Euro down to £1.14 from near parity not so long ago.

The bets follow the European Union getting ready to underwrite £26 billion of debts for the Greek government.

Traders are also banking on other European countries like Portugal and Italy looking for financial assistance as well.

Speculators believe these states will be unable to meet their obligations to lenders and have taken up a short position on the currency.

Economist Richard McGuire, of RBC Capital Markets, said: ‘It is almost as if the banking crisis is now being replayed in the sovereign (government debt) space. The market concerns have this almost self-fulfilling quality to them.’

Hundreds of thousands of expats are losing money if they have a pension paid in Sterling that they have to convert to Euros and pay exchange charges to pay their bills while living abroad.

If UK pension funds were transferred in to a QROPS pension that can pay out in local currencies, they could save that money.

QROPS allow fund investment in Sterling, Euros, US Dollars and other currencies that can be paid directly in to an offshore bank account that bypasses exchange rate fluctuations and bank transfer charges.

This leaves the saver with more cash in their pockets than if the pension was paid in Sterling and had to pass through several financial hops to reach wherever they live - with each hop attracting bank charges.

QROPS Adviser is a leading financial firm that handles hundreds of QROPS pension transfers a month that can offer independent and unbiased professional advice on whether a QROPS suits your retirement circumstances.

Providing no annuity or state pension is involved, QROPS Adviser can build a bespoke QROPS plan to match most currency and residence needs.