As an ex-teacher my pension is taxed in England, there is nothing I can do about that. However, I need that pension to live on and so must have it transferred to France. Since the brexit vote I have seen the pension I actually recieve plummet. I am not knocking on poverty’s door but the money I thought I had to treat the grandchildren when they come over has disappeared. I haven’t see many blogs about this surely I am not the only one suffering?
we were discussing this at the Mairie only the other day…almost had them in tears… but I explained that … so long as my cellar had tins of confit de canard and plenty of red wine… I would be alright…
It is def something to be thought about. I am more careful nowadays… not so free-spending… but still enjoying life to the full.
One good thing is that we will have less total-income to declare in France…and that might bring folk down into the category where one pays less/no Tax d’Hab… which might ease the pain just a little…
console yourself with the fact that, if you still lived in the UK, your pension would go far less…
BTW, are you taking the TP in sterling or having it paid directly to your French bank? Last time we checked this out, we found that the rate was appalling but the State pension paid by HMG through Worldpay is actually not bad (still measly due to the exchange rate of course).
I’m in the same position. However I believe that I have to grin and bear it as it was me who chose to live in the Eurozone knowing the risks. Even at today’s exchange rate I enjoy a much higher standard of living than I would in the UK and if it falls to parity or below I will still stay because there are some things that money can’t buy.
It makes my heart bleed when they say on the UK news that people are having a had time because the cost of food is going up and their pay is not.
Does anyone mention that we, UK citizens as well.have suffeted a huge cut in out annual income due to the fall in the pound?
We might as well be invisible!
Jane you chose to leave the uk, in doing so you are at the mercy of the unstable exchange rates. I have little sympathy for those that moan that the rate has dropped, what made them think it wouldn’t?
Well a glib answer would be that we thought the UK had a strong economy and the exchange rate for the most part would be good. Actually I still think that is true but obviously with brexit there is a blip ( which may last for several years ). However a more accurate answer would probably be that we did not think that it would always be a good exchange rate. When the rate is good we will rejoice, and when it is bad we will moan. A bit like the weather. Is there a problem with that?
It isn’t just the Brexit result that has weakened the pound, it has happened a number of times over the last ten or twelve years or so. I’m not sure I’d want to survive on such little money that any drop in the pound meant I’d struggle to buy a few treats for the grandchildren.
Strong economies do not mean strong exchange rates. Britain will need a low exchange rate once it leaves Europe to ensure that the British economy stands a chance of strengthening as they will need their exports to be good value in foreign markets and imported goods to seem expensive enough to (re) become luxuries not everyday items. Once the UK leaves Europe the Government will have more control over the ‘value’ of the pound but don’t expect it to regain the heights of 1.40+ to the Euro because that isn’t going to happen. If you want to see exchange rates soar just get the Bank of England to raise its interest rates, that would get foreign money flooding into London to buy pounds much faster than whatever it is that the UK us going to produce and export to create its wealth will ever do.
I am not alone! I knew I would be subject to varying exchange rates, I still wouldn’t move back, preferring to be poor in the sun than in the rain; BUT, my arguement is, the uncertainty and lack of coherent policy with the B
ritish Government is making the situation worse. And yes, the problems of British citizens living in Europe is ignored!
We are two ex-teachers who have been here for nearly two years starting out with the 1.4 exchange rate. Whilst we lament Brexit we are happy enough to ‘suck it up’. The quality of life here is so enjoyable.
A comment on this post about Increased costs it the UK is a very salient point. It will be the hidden hand that will make UK people poorer. A weak pound makes living there expensive in a cramped and stressed country. On reflection we are happy with our lot. At least our grandkids can come over for a fab holiday even if I have to put on hold the order for the new Bentley!
I can cope with the exchange rate going up and down what makes my blood boil is on the one hand having to pay tax in UK no choice and on the other soon to loose my right to vote in UK.If they don’t want my vote why should they be allowed to tax my pension:rage:
As usual from this source, your reply needs careful thought for a non-economist to make proper sense of, but is very helpful.
We bought our home two years ago when the Sterling-Euro exchange rates were very favourable for doing so, but the available evidenve suggested (even to a duffer) that if we left it too long we would probably be priced out of the market for the property we wanted.
Now our available income (based on UK state pensions and public service pensions like other commentators here) has been reduced by almost 20% of
its earlier value. As has been said elsewhere, we are content to “suck it up”, whilst having to maintain a ‘second home’ in UK while living here full time. Our ‘second home’ is not a source of rental income either, much too risky.
THere are many easy economies to me made here. We grow a lot of ur own food, and hardly ever eat out, it’s something we enjoy as a rarity. And the pleasures of French life are priceless.
Sorry Jane, I’m afraid I’m with David Naylor on this one. We all have choices in life and if you choose to live anywhere overseas there is always an exchange rate risk. It’s affected us all and it’s painful right now but the pound will go up eventually, in the meantime we will tighten our belts and carry on with the potager
Not everyone is stressed and unhappy in Britain, nor living in cramped conditions. I don’t know what part of Britain you came from but certainly not where I am from in Dorset. I love Britain and a France equally, both have plus points. Having grown up and been educated in France maybe I see life as not always quite so rosy here
My view on this is that anyone who cane to France not being capable of absorbing a 50% loss of income due to exchange rate fluctuation was deluding themselves for the long term view. I am not rich, I have a state pension, government pension and a final salary company pension. I use my credit card or a currency specialist to bring funds to France as and when required. Yes, I take a hit at 1.09 compared to 1.40+ but its manageable.
How come you are paying tax in the UK (with no choice)?
Well I am not sure that control over the value of the pound is quite the right description, influence might be more appropriate. However if this prediction is anything like correct I don’t think that the government will be able to exert enough influence to keep the pound down. The UK going for unilateral trade deals will make some rich people rich while the poor get poorer. It is these rich people who may drive up the exchange rate, eventually.
That will not happen. Tariff free trade is a dream.
@Graham Lees, people with ‘Government’ pensions are taxed (on that income) in the UK.
Well it’s not like you ever do get a choice where you pay your taxes, is it
as David says, under the DTA, British government pensions paid to civil servants, armed forces personnel, teachers in the public sector, etc, remain taxable in the UK. So I guess the lady has one or some of those.
My heart does go out to folks who are being squeezed by this, I don’t tend to get stressed about things that go wrong just as long as I can take steps to put them right, but my stress and frustration levels soar sky high when I’m worrying about things that are out of my hands. Stuff like, people who don’t do things when they promised, machines that refuse to co-operate, trains that run late when you’ve got a tight connection to make. Exchange rates heading south would be in the same category. I couldn’t have moved here after I’d retired, having to rely on a sterling income… My nerves wouldn’t have stood it.