AMB Cote d'Azur

I mentioned in my May column that the weather was a significant factor in the ‘quality of life part of our rationale for moving here. So what went wrong?  May and the first half of June have seen more rain than anyone we have spoken to can ever remember here.
Much of it has been needed, but on reflection does even the South of France deserve to avoid the weather variability that the rest of the world now seems to be getting used to?  By the same token, is France likely to see out the financial storm that has been engulfing the US and UK in the last year?

France’s traditionally high savings ratio and low consumer debt levels leave it better able to cope with the credit crunch issues hitting the US and UK.  Unfortunately, many of our readers are still subject to their income streams being significantly affected by exchange rates and mortgage deals in the UK. This is especially so for those with UK sterling denoted pensions; those with mortgaged UK properties and even those with mortgage free UK properties, both who may be relying on UK rental incomes.

Any improvements that can be found in the costs of exchanging regular income amounts are welcome. It may be worthwhile for some to look carefully at the bank charges and rates they are receiving from their current French/UK bank account provisions.

The specialist currency exchange providers are very competitive in terms of service provision (often free) and rates, dependant on the amount being exchanged. Being able to exchange higher amounts through these providers (usually) above £5k will improve the exchange rates offered to at least 300 points above tourist rates and for higher sums further rate improvements are available.

Of course, the ability to weather such spikes and troughs in your financial affairs is usually best served by long-term planning, through well balanced savings, investments and borrowing. Having said this, very few experts if any, saw the credit crunch coming. On such occasions, for some people there is both the necessity and opportunity to take more impactive action to protect or improve their resultant financial position.  

For many with UK sterling denoted private pensions, Qualifying Recognised Overseas Pensions Scheme or QROPS for short may be something that they have recently been considering. It’s a pension scheme set up outside the UK, which is regulated and recognised for tax purposes as a pension scheme in the country in which it is located.  QROPS have been established in various countries across the world. One of the proposed benefits is that some jurisdictions with HMRC recognised schemes have  tax rules that may prove beneficial for French residents. The ability to access your cash more flexibly and denote it in the currency you now live may also appear worthwhile.

Your pension pot is your money, so why should you be forced to buy a “poor performing annuity” and if living in France suffer the pain of current exchange rates on your regular income? Actually, it has been considerably enhanced by HMRC allowing you over the years to build it up with considerable tax reliefs. Perhaps it is only proper that it should set in place some stringent regulations having allowed this new flexibility.

Suffice to say, taking advantage of the QROPS provisions may provide you with worthwhile financial advantages, but a properly recognised and regulated scheme will require the advice of a regulated financial adviser. Getting someone local to you, that you feel comfortable with and who is able to provide long term service will always be an advantage.  

Spectrum does not charge clients for advice given, which is independent, regulated and indemnified.
Call Martin on 06 43 63 68 63 or by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it for your free, no obligation financial review or mortgage application.