How are ex UK people doing

[PaulT]

When the exchange rate first started to drop there were some comments from people about the effect it was having. I remember one post where the viability had been calculated using 1.30 euros to the pound to make sure they would be OK.

Well, unfortunately, it has fallen well below that.

Our own plans were to relocate next year but the health issue stopped that. However, if the health scheme had been as it was we would be putting off relocation for a couple of years due to the exchange rate.

I sometimes think of those of you out there seeing your pensions etc effectively reducing due to the exchange rate.

Are any of you contemplating giving up and coming back or have you devised ways of reducing your budgets?

Paul

[giantpanda]

Hi!

A good time to remind, that is one of the points you should consider before considering settling in France.

Some may remember at the time of decision for going into the Euro, one of the reason why GB refused was that the their countries wanted to depreciate the GBP by somewhat more than 10%.

So if you intend to settle in France, and not go back ( also after a first death ) it is necessary to consider to reconsider your investments, even if it tempting ( if you have not reviewed the investment possibilities in France )  to leave investments in GB because of " apparently " higher interests.

Unfortunately for most pensions*/ private pensions you do not have the choice, and that can hit you quite considerably if you are dependant on them.

Yours,

giantpanda

* I am told you cash get on some pensions contracts , a lump sum, but I do not know the details.

[Bugsy]

Well I was really happy when I transfered my NHS pension to payment in france as the tax paid in the UK on it, no longer applied. That benefit has now gone and I am receiving less now than I was two years ago.

I guess we need the euro to drop...........[:(]

If anyone has any spare cash they would like to donate it would be very welcome..................[Www][:D][:D]

[mint]

It's not just the pension going down in real terms, it's also the drastic drop in interest rates. Therefore, if you are relying on the interest from your cash savings to boost the pension, then you really are suffering from a double whammy.

But, if not cash savings, what else would you put your money into?  Certainly not equities as you'd need more than a crystal ball to predict which companies' shares are going to do OK.  I suppose you could invest in bricks and mortar and buy another house but, is that really something you are brave enough to do, considering the turmoil in the housing markets both in the UK and, to a lesser extent, in France?

So that leaves the time-honoured tradition of stuffing the dosh under the mattress as the only sensible alternative, I suppose.  At least, you could see it, touch it, smell it, sleep on it and eventually get to spend it.

Any better suggestions, anybody?

[Russethouse]

Have a look at http://www.moneyfacts.co.uk/ there are still some reasonable rates around (well 6%, not brilliant, but could be worse)

[mint]

Thanks, RH.  However, no longer fiscally resident in UK so I doubt that I could open any new bank accounts [:(]

[HoneySuckleDreams]

it's not just pensions. I work short term contracts (mainly in the UK) and get a rate-per-day in GBP. Since last november, just because of the GBP-EUR exchange rate I have effectively had a pay cut of 16%. And as the day rate is now starting to drop as well thnigs will get worse.

[parsnips]

Hi,

  Nationwide International are still offering 6.30% on over £25000, and 5.75% on £5000-49999. See their website, sterling tracker premium a/c.(this rate is not fixed), their fixed rate 1yr bond has dropped from 6.40% last week to 4.75% now.

 I'm afraid the drop in the value of the £ is catching out a lot of people who came to France with little in reserve for events such as this. It has little to do with the general crisis, (although not helped by it), the financial press had been warning for some years that the £ was significantly overvalued against the €, and sensible planning for a move  should have made provision for this eventuality. 

[Angelite]

The Bank of England are not ruling out interest rates falling to 0% next year.  How can that work?  What is the point of anyone having savings if that is the case? 

 

[Quillan]

[quote user="P2"]

I remember one post where the viability had been calculated using 1.30 euros to the pound to make sure they would be OK.

Well, unfortunately, it has fallen well below that.

[/quote]

Actually it was me that said it although I was referring to a friend of mine. He set that rate for himself back in 2001 and anything over that he stuffed away in a French savings account. Considering that at times its been well over that rate he thinks he has done rather well and pointed out that he can't complain when the rate dropped, he has had some very good years. But then he gets a good pension, better than most.

I don't think people in the UK are getting the full story. I mean they cut interest rates by 1.5% and there are probably more cuts in the near future and one normally expects the value of sterling and shares to jump up immediately, then back down but still higher than pre interest rate cut. This time they went straight down and then up a bit, what does the market know that the government is not telling people.

My prediction, for what its worth, is that interest rates will continue to drop to anywhere between 1.5 and 1.0% in line with the US. I don't however think that its the solution, it certainly has not been for the US where they have already dropped to 1% and its made little or no difference. GB seems to think he can spend his way out of trouble but I don't think thats the answer as somebody has got to pay for the spending, I wonder who that will be[;-)]. Neither is the answer to encourage people to borrow more money getting themselves in to further debt. After all was not that one of the major contributing reasons for this current mess.

As to what is to be done, I honestly don't know and don't have an answer. The only thing I can see (sorry) is that its going to get a whole lot worse before it gets better.

As to leaving France and going back well are you not jumping out of one fire and in to another? Likewise you can't blame those that moved here 5 or 10 years ago for not seeing it coming, very few people did. There are always those worse off than ones self, think of those Brits that moved to Spain, its really gone tits up there.

[mint]

That's the whole point, Angelite, there is no point![:-))]

[Quillan]

[quote user="Angelite"]

The Bank of England are not ruling out interest rates falling to 0% next year.  How can that work?  What is the point of anyone having savings if that is the case? 

[/quote]

I heard they are going to pay you to borrow money next year [:D] . If anyone actually said that I think it was tounge in cheek. The minimum rate will be 1% and it can't go any lower.

[Bugsy]

The euro is 1.21 and heading dooooooown......................[:@]

[Quillan]

Every time it (Sterling) makes any form of recovery some idiot pops up and makes a stupid statement. Last time it was Darling, he mentioned the 'R' word just as it started to recover and down it went. Yesterday it nudged up a bit then that fella from the BOE gave a press conference today and said things were going to get worse and down it goes again. Makes you wonder if they have any feelings for Joe Average who's just trying to get by. Never mind it may get better, wait till GB comes over to tell Europe how they should sort out their money problems[:-))]. Bit like making Adolf Hitler special peace envoy to the middle east. What was that bank advert a few years ago "There may be trouble ahead........".

Well I get my pension forecast in January, I don't think I shall even bother to open it.

[Benjamin]

More comments from the BoE's Mervyn King. Good news on UK inflation for next year.

http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=320756&re=4141&ea=161021

[Just Chris]

Whoever thought it was cheaper to live in France was sorely mistaken.  It certainly costs us much more - what with the various taxes, social contributions and health top-up insurance.  Motor insurance is dearer for us, food isn't much cheaper (if at all), and there don't seem to be quite the same discounts (on everything) that you could find in the UK.  We have found that it's probably cheaper in the long run to go back to the UK on a flying (not literally...) visit and stock up there at the present time.

The exchange rate has really bu**ered a lot of us, luckily we have savings in France as well as the UK, so maybe we can ride the storm.  As we're STILL being taxed in the UK as well as France (well over 18 months, now) and as yet there is no sign of a refund, it's a bit of a struggle.

Fuel is marginally cheaper, but that's probably about all (oh, and wine of course...).

However, we never thought it would be all plain sailing - that's not what we came for.  All the reasons for quitting the old country still exist,  and are probably being added to daily, if the news is to be believed.  So, we'll stick it out - we love it here.  If we run out of cash, we can always live on walnuts!!

 

[Russethouse]

Angelite, When Mr Brown was Prime Minister I was told there was no point in saving money, inflation made savings worthless, the thing is that as we all know these situations are not ongoing in the long term, so keep saving and your time will come.

(Just don't ask when ! [:)] )

[k1w1]

Hi

I hope to move over early next year and have been wondering whether I should have my pension paid direct to France or maybe into my English bank account to be transferred over maybe once or twice a year.  With the current awful exchange rates does anyone have any thoughts about about this topic.

[Bob T]

[quote user="k1w1"]

Hi

I hope to move over early next year and have been wondering whether I should have my pension paid direct to France or maybe into my English bank account to be transferred over maybe once or twice a year.  With the current awful exchange rates does anyone have any thoughts about about this topic.

[/quote]

Yes everybody has thoughts about this subject, but no one can know what is going to happen on the money markets. Just have it paid into a French account every month, it is less hassle and it will make no difference to what you get.

[giantpanda]

Hi!

Check!

Of course you can still open an account.

Yours,

giantpanda

[allanb]

[quote user="Bob T"]Just have it paid into a French account every month, it is less hassle and it will make no difference to what you get.

[/quote]Actually I think it does make a difference, but it supports your advice: the Pension Service, transferring a huge amount every month, will almost certainly get a better rate than a private individual on the same day.

[Bugsy]

[quote user="Quillan"]

Every time it (Sterling) makes any form of recovery some idiot pops up and makes a stupid statement.

[/quote]

Perhaps we should all send these people a message...........

If you haven't got anything positive to say SHUT THE F*** UP

[Mr Wiggy]

I too like Bugbear opted out of the UK tax system, this was done totally by our own S-D, in fact all I did was to sign and date where nessary and post the envelopes.

Now being out of the system I find that I am better off but still not enough to sponsor Bugbear as I am already sponsoring my local drinking establishments. To be serious though I do think the tax system in the UK is very unfair in many instances, to me now looking back at the UK the old addage springs to mind and as far as I am concerned is quite true, Rip Off Britain and I would never want to go back and am very happy here.I see that the rates of the £ is at an all time low and I have moniterd the exchange rates for nearly ten years.

[Ron Avery]

Do you really believe that sterling falls just because somebody mentions the R word?  Recession is just a technical term for two quarters without growth and the UK has not even had that yet.  Don't you think that the people who trade in sterling thereby setting the rate really wait to see what politicians and the like say, can't they see the figures and predictions  and work it out for themselves? 

As a matter of interest some people with financial acumen and influence are predicting £1=1.28€ by Christmas and £1=1.35€ by March, you want them to shut up as well?

[Ron Avery]

[quote user="Mr Wiggy"]

I too like Bugbear opted out of the UK tax system, this was done totally by our own S-D, in fact all I did was to sign and date where nessary and post the envelopes.

[/quote]

So how did you do "opt out of the UK tax system" then Mr Wiggy?  Do tell.  I am sure many readers will be interested to know that there is a choice involved here.[8-)]