Managing Foreign Pension Income

September 23, 2021

Helping retirees earn up to 3% more on their foreign pension income is a win-win.

With close to 6.8 million older adults over the age of 65 in Canada according to Stats Canada, the number of Canadians who will have dual citizenship and who are entitled to a foreign pension such as a US Social Security payment, or UK State Pension payment or a private qualified retirement account from those countries will grow as well. As you plan your retirement, it is good to know how to increase those earnings right away with a strong currency exchange rate. This article will share options to increase your foreign pension income by up to 3% right away based on your relationship with your current provider, through the currency conversion step.

Managing foreign pension income is part of retirement planning

Retiring in Canada offers freedom from the daily grind of work but can come with a daunting checklist of forms to fill in, notifications to make and transitions to the next chapter of your life. In some cases when retiring there is the added complexity of managing a pension from your workplace and/or a foreign pension from a country you once were a citizen in. Such is the case with many US and UK Foreign state and private pension members who may be balancing income streams in their retirement that are of different currencies.

In Canada, the average age of retirement in 2020 according to Statistics Canada was 64.5 years old with public sector employees retiring earlier at an average age of 62.4 and self-employed entrepreneurs returning at the average age of 68 . The baby boomer generation is leading this cohort as they decide to exit the workforce this decade and they are five million strong according to the CBC . RBC Wealth Management cites in a recent 2021 report, that as we see the boomers retire the impact to the Canadian economy as we see the older adult population grow from 17 percent to 25 percent of the Canadian population .

Those retiring who have US Social Security or UK state pensions or other foreign pension funds coming their way will want to consider how to bring in those funds from the US or UK without losing money in the transfer. It is helpful to know that the currency exchange step can help you increase your income if you take a few simple steps.

Don’t convert your foreign dollars with your bank. Ever.

Banks don’t offer customers the best foreign exchange rate.

If you compare currency exchange rates with Canadian banks such as RBC, TD or CIBC you’ll realize quickly that banks are not the best place to exchange funds. Even if you are a loyal and long-term customer of a Canadian bank, you won’t get the best rate. Try to get someone on the phone at the bank to inquire about getting a better rate? Good luck.

VBCE has helped Canadians with their foreign exchange needs for over 30 years. We are one of the first, and now the oldest Canadian private firms specializing in foreign exchange and payment services. In Vancouver, banks send us their clients as we handle over four billion dollars in transactions annually and our banking partners know we can help their customers.

You can easily bridge between your bank accounts. For example, for recurring needs, you can transfer between your Canadian dollar account and your US dollar account with VBCE and increase that transferred amount by 3% in one step.

  • Our rates are known for being the best and we beat the bank rate for our customers by up to 3% every day.
  • On average, if you exchange $10,000 of Canadian dollars to US dollars at VBCE compared to a bank, with a 3% difference in the exchange rate you will save approximately $300. This is a sizable difference when looking to maximize your retirement income.
  • With no commission fees that amount is the amount, you gain in the exchange step.

Earning up to 3% more when transferring currencies is easy and convenient.

We offer full-service options for our customers including in-person, phone and online options for currency exchange and we make the process as easy as possible. Our full-service support is for everyone, and we work with many retirees across Canada including those Snowbirds who like to head to warmer climates in the Winter.

  • We have four convenient locations in the greater Vancouver area - South Granville, Downtown, Burnaby and Richmond.
  • Our phone customer service representatives are available to help you with any needs and are all fully trained currency exchange experts.
  • If you prefer an Online option we have VBCE Online which connects to your bank account and allows you to exchange funds 24/7 and transfer the exchanged funds to your Canadian bank account.

It was my first time exchanging money at VBCE. I usually exchange my currency at the bank. However, they were able to offer a better rate than what the banks were offering for US dollars. The service was excellent and they were able to wire the money straight to my US account. Everything went so smoothly. Great rates and excellent service." Jocelyn C.

Want to travel, explore, and more? No, problem!

In addition to using VBCE for foreign pension currency exchange, we offer over 80 currencies for those who want to head south or explore the world. Snowbirds, world travellers and those managing homes abroad all save with the most efficient and cost-effective cross-border exchange options with a trusted team of experts behind you.

  • Plan your adventure and know that you have the best currency exchange rate available.
  • Set up foreign mortgage payments and HOA fees easily online for recurring payments.
  • Retire worry-free knowing you’ve not only received the best exchange rate but that you have a team of currency experts that you can speak to, and ask about market timing for life events and large transfers.

Save wisely, retire with purpose

Spending your hard-earned money in retirement should be a pleasant experience. Being confident that you are managing your foreign pension income with the best currency exchange rate that earns you more in your pocket, will allow you to be worry-free and do more with a fixed income.

Call or email today to learn more about how we can help you with your foreign pension income or any other currency exchange needs. Your personal contact for questions about foreign pension income, managing homes cross-border in the US or other locations, and planning your retirement adventures abroad is Carla Valdes 604-685-1008 or Give Carla a call or send her an email to speak to her about your current and upcoming needs.

Learn more about how VBCE saves customers money via the VBCE Online platform

Speak to one of our VBCE Online experts if you have questions about how the online platform works. As a FINTRAC regulated firm, we will want to get to know you so we can validate your identity and speak to you about your needs. You’ll answer a few questions to help us better understand your plans and the services we think would be a good fit for your lifestyle. Learn more about VBCE Online