Pension payment to India from Uk

#1 May 20th, 2005, 00:53
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#1
Is there some one who have already moved to India on a permanent basis as a retiree ? If so could you give me some information regarding the pension payment direct to a Bank account in India.
Are there any deductions from the pension before it goes into the account if so how much? Percentage wise how much will I lose from the amount?
I have a state pension and a works pension, enaugh to live in a basic comfort in India but the same amount which will not give me a basic comfort living in Uk, well, nearly impossible to meet all my expenses here as the cost of living in Uk is going to get worse as years pass by. that is the reason I want to retire to India. For a start it will save me a hefty amount in central heating bill. Oil prices are getting out of hand so everything is going to be expensive and my pension will not be able to cope.
Any advise or suggestions will be of great help and will be highly appreciated from folks who have successfully retired in India and enjoying their twilight years.
Regards.
#2 May 20th, 2005, 01:11
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#2
hi shang & welcome to Indiamike.
Just a preliminary question, Have you any experience of living in India already? If you haven't I would suggest a long term holiday first to see if it is for you before you commit yourself to retiring there,,,,,,,,,
#3 May 20th, 2005, 01:14
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#3
great question, as lately I've been wondering about the same thing, i.e., from a US standpoint insofar as Social Security (before Pres. Shrub screws it all up). I have a friend who wants to retire in Palani.
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#4 May 20th, 2005, 01:17
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#4
I have a relative who elected to get his UK state pension in India. From what I remember he used to get it paid monthly into an Indian account. Do not know the ins and outs but from what he told me his pension did not get any yearly increases but he was happy with what he got. It was more than adequate for his style of living. Last time I visited him he had 20 odd crates of Coca Cola stacked up in a room to enjoy in the summer (love to have seen the state of his dentures after such a binge ) He was managing to enjoy his retirement, the weather was better for his health and he managed to accumulate a nice bank balance.

Found the following links in Google which you may find of interest.

http://www.direct.gov.uk/Audiences/B...013&chk=njEtZz

http://www.thepensionservice.gov.uk/...ngoverseas.asp
#5 May 20th, 2005, 01:18
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#5
Where to start?

Once I've sold my house (pray...) in London I will be earning about the same as the basic UK pension in interest, and, yes, it will support a comfortable life. If you have more than the basic then you should be doing ok.

I have 13 years to go before I get my UK pension, which will make for a nice pay rise ---if it still exists then

My plan (whcih may change, of course) is to keep my capital in UK and only draw as needed. But I need to talk to an Indian accountant to see about liability to income tax (none in UK: it won't be enough ).

This is your first post here (Welcome to IM ) and you haven't told us much about yourself and your experience of India. What part of India attracts you? Are you thinking to buy property? What about the visa issues?

...Lots on IM about all these things. Remember that, unless you can arrange anything more permanent, you will be stuck with a tourist visa which means that you must budget for leaving the country and renewing it twice a year.
#6 May 20th, 2005, 03:54
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#6

nice one

Thanks to all for your replies.
Hoping to hear from retirees from India but your help is well appreciated regardless. I am sure somebody will reply if they find any spare time from enjoying themselves.
None of you apparently are retirees but experienced travellers in the sub continent of India with extensive knowledge. glad I have found this forum and I am sure I will have many happy days participating in the discussions.
Very interesting place indeed.
Somebody will respond with right answers to my query regarding the expenses involved in transferring the pension from Uk to India.
Bank details,such as if the pension department would send the pension direct to the account in India or does it have to go into an account in Uk first then it is transferred to the Indian bank account, while this transfer takes place how much money will be deducted from the pension.
Tax,coversion fee,exchange rate,commission, question is what will I be left with? bit of a mind boggling stuff till one gets the right answers to all such questions.
Any how, I will keep searching and gathering all the info I need to weigh up the situation and see if there is really any benefit in taking the plunge to retire in India.(just joking). Retire to India mind is made up ages ago and no going back on that part. waiting to put the house up for sale, on completion I sure will be heading east to a lovely warm climate and surrounded by ever pleasant,smiling,friendly Indians.
I have been to India many times, as the saying goes " there is good and bad" but I could hardly see any thing that is so bad for among all the good that I have seen.
Bye for now.
shang.
#7 May 20th, 2005, 04:26
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#7
hello

Just out of curiosity, what exactly is the retirement age in UK, Shang?
My parents were thinking the same as cost of living in both US and Austria (relatives) are pretty high..So they were looking for an altrenative..also do we have to pay any kind of "transaction fees" or hidden taxes in either countries?

Pardon me, i do not have any idea on tax laws in India.
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#8 May 20th, 2005, 08:37
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#8
Retirement age in UK (so far as entitlement to state pension is concerned) is 60 for women and 65 for men.

Companies may have earlier retirement ages and pension arrangements.
#9 May 20th, 2005, 08:51
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#9
Notwithstanding the amazing wealth of knowledge here on IM, I really do think you are asking in the wrong place!

So far as UK pension is concerned: ask the UK Pension Service (link above). I applied for a Pension Forecast from them last year and I think some information on being paid abroad will be included if you ask for it.

So far as private pensions are concerned I don't see why any two companies should have the same policy or procedures necessarilly. Time for letter-writing/phone calls. I don't know how close you are, but if you start now you just might get an answer by the time you retire!

Remember that money paid into a UK bank is as near to hand as your nearest ATM machine in India. Also banks such as ICICI have services that make it very easy to transfer money.
#10 May 20th, 2005, 16:52
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#10
Nick-H,
Right now I am working on getting a visa.
On completion of sale of the house I will be looking to buy a reasonable priced house in southern part of the country,cochin is the one that I am aiming for.
In the mean time I will open an account with ICICI and bank all the proceeds from the house sale plus my savings and obtain a debit/credit card for use in India.Preference to keep most of the fund in Uk bank then transfer to local bank in India as and when required.
I expect there wil be charges for withdrawals through atm, just wondering what would be the charges for such transactions! eg: charge if any for withdrawals,conversion charge etc. If you care to tell me, It will help as a guide to what to expect in terms of cost.
Also Indian tax laws seem so complicated when it comes to dealing with such issues as income from abroad (pension) and transfer of money into local account and such.
Right now I am looking to get hitched to an Indian lady thus solve the visa crisis. become a PIO.
#11 May 20th, 2005, 17:44
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#11
This is something I've looked into also. My thoughts on the matter are as follows: First of all, maybe you shouldn't be in so much of a hurry to finalize your position. Keep an address, of convenience if necessary, and a bank account in the UK. Have your pension deposited in the UK account and use a debit card to live on while you are in India. No need to register as a resident of India so quickly either. Even though registration is required soon after arrival for long term residents, you can always travel to Nepal and immediately return and register then. Also, why buy a house? Rent, buy later when you are sure. Keep your options open as long as you can.
#12 May 20th, 2005, 18:24
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#12

Transferring Money from the UK to India

If your money is in your UK bank account you can withdraw it from an ATM (cash machine) in India, in Rupees.

The Nationwide does not charge for withdrawals, but the Halifax Bank charges 1.50 for each withdrawal - I MUST get around to getting a Nationwide account!

Most banks have a withdrawal limit of Rs.20,000/- a day.

The exchange rate you get is normally quite reasonable because all the foreign exchanges for all customers are reconcled by your bank at the end of the day and they get better rates than you could expect in a Bureau de Change or hotel.

Because I am a foreigner when in India, my bank account with the State Bank of Travancore is a special "Non-Resident External Account" into which I cannot pay Rupees. I can deposit foreign currency only, and this can be done in cash, or through the UK (or other foreign) banking system.

Sterling payments from the UK are handled by Barclays Bank Plc or State Bank of India in London.


All the best,

John.
Last edited by john.sw; Jun 23rd, 2005 at 17:22..
#13 May 20th, 2005, 20:23
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#13
While i do not know anything about the pension system or anything of that sort, maybe this might be of some use from a tax perspective.

a) Most of the time people are on a 1,5,10 yr. visa to India(let's say)
b) pension gets credited into an UK account
c) There are some sites which allow remitting to India such as remit2india or any of the private banks.
d) use them to trf funds to self via a Demand Draft or a direct EFT to your local bank(can be done if one is in a metro)

for example, when I was working in the UK, I used remit2India(over the 'Net) to send a Demand Draft(is it the same as a bankers cheque?) to my friend. For sums above 700 GBP there was no service charge.(it's about 5-15 GBP, for lower amounts). The exchange rate was the one on the day the DD is issued. i.e. the day remit2india received the funds.

So keep the account in the UK, remit the money , say once in 3 months as a lumpsum to your local bank.

One long way to do it but might save you lots of hassle is.

pension->local UK bank-> UK based indian Bank(ICICI,HDFC etc)-> intra transfer to local(same bank) branch in India. Don't know what's the minimum bal. or what the exchange will be or whether there might be any commission involved.

From a tax perspective, you're still a tourist, aren't you?

nix this thread if it's bleeding obvious....
#14 May 20th, 2005, 21:21
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#14
John, can I ask you sokme questions about you account etc?

Do you keep your account open permanently? I understood the RBI regulations to say that such an account can only be opened for 6 months. Or do you have Indian resident status? Is there no problem keeping the account open when you are in UK?
#15 May 20th, 2005, 21:44
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#15
I believe that if the money is not earned in India, and is covered under the tax authority of another country, you will not have to worry about taxes in India. And as a tourist, you are not suppose to be engaging in business ventures anyway (even though lots of people do, as India has no way to track income etc.)The easiest way to deal with your situation is to get the six month tourist visa and plan to travel to Nepal, Thailand...or visit GB in summers to renew. You would want to go to the hills in summers anyway, and journey via train/bus isn't all that expensive.

Renting is probably the best option. Renters generally have a lot of rights in big cities in India, and that is why most Indians prefer to lease to non-indians. In order to own property in India, you will probably have to incorporate a business entity, and the bottom line is when you sell, you can only take back the amount you put in, and any appreciation is left behind. Rent and enjoy. You are renting time on this earth anyways.
Last edited by Tigr; May 21st, 2005 at 03:41..

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