Following the posts that UK pensions can now be paid directly into Greek bank accounts, I have been wondering if this is wise bearing in mind the current uncertainty about the future of the Euro and what would happen if Greece reverted back to the Drachma.

Somehow, and I don't really know why, I have more faith in the future of Sterling than I do in the Euro. What do others think?

You also have to remember that UK bank accounts are guaranteed by the UK government up to £50,000 while my Greek accounts, with Marfin Egnatia, are only guaranteed by the Greek government up to 20,000 Euros per person.

All comments would be appreciated

John

Splitting your money between three banks certainly lessens the risk of losing it all in one go, but what happens if the Greeks decide (or have the decision made for them), to exit the Euro and return to the Drachma?
Holding some in Sterling might be a prudent move Ken.
Or even in Gold, or USD.

It took some time for the pensions people to put Greece on the list for direct payment of pensions, as I can recall phoning them 2 years ago to ask, and at that point there were "no plans".
I would think, IF Greece reverted to the Drachma, as they are still in the EU, and as pensions can be paid into other non EU countries, such as Canada, Australia, etc, they would leave Greece on the list and pay the equivalent rate in drachmae, at the rate that day. But that is conjecture.

Personally I was only considering the state pension part of my income paid direct, and the remainder going into UK accounts, probably straight into savings accounts until we did a bulk xfer every few months or so. One of the reasons for this is our other pensions can only be paid into UK banks.

The "savings" pots would stay in the UK for the higher interest rates and the FSCS 50k per person guarantee. Luckily the banks we use have no problem with non-doms.
We can't continue paying fresh money into our ISAs though.

Regards
Anna

Buy land - they 'aint making no more of it!