Emigrating to escape economic gloom?

The prospect of escaping to foreign climes and starting a new life abroad still holds real appeal for many people in the current economic climate but as the pound continues to be battered in the foreign currency markets, HiFX warn that British émigrés could be risking losing as much as £850 million a year when transferring their assets abroad.

In a recent survey, 24 per cent of Britons said they were "seriously considering" leaving the country to avoid the economic slowdown and according to the latest figures from the Office of National Statistics around 85,000 families decided to quit the UK for a new life abroad last year. However, currency specialists HiFX urge anyone starting a new life abroad to make sure they do so with as much money as possible by avoiding rip off high street bank exchange rates and transfers fees and seeking advice on the timing of currency exchange.

Don't let the banks cash in!

On average, a UK family emigrates abroad with assets of £250,000 from the sale of a house, cars and savings. While they carefully plan their new lives in minute detail, what many overlook is the potential cost of leaving their currency exchange in the wrong hands. By transferring their savings to their new country via a high street bank, the average family risk losing up to a staggering £10,000 of their assets, equating to £850 million in total for all Brits emigrating. According to research from HiFX, banks typically charge 4% more than currency specialists in unfavourable exchange rates.

Mark Bodega, Director of currency specialists HiFX, who help over 30,000 people emigrate and buy property aboard each year explains, "With the UK economy in turmoil, the housing market plummeting and the hope of better job opportunities abroad, more and more Brits are considering emigrating. However, with current economic uncertainty, it's never been more important for people thinking of making a move abroad to do their homework and find out if the grass really is greener on the other side.

"Making the decision to move to a new country is a big undertaking, both emotionally and financially. The last thing that any family taking the leap would want to do is unnecessarily lose as much as £10,000 in the process, particularly when most people are feeling financially stretched. Unfortunately though, this is exactly the case for the many people who entrust the transfer of their assets to their new country via a regular high street bank. This huge loss could be avoided simply by people being aware of the alternatives and making sure they get the best rate for their money, early on in the process."

Beware of additional charges

Using a high street bank also means being subject to a number of additional bank charges which include commission fees (up to another 2 per cent of the amount transferred and transfer charges (usually £25 for each and every transfer)) and finally, depending on where the money is being sent, up to another half a percent bank receiving fees. Currency specialists like HiFX will transfer money abroad completely free of charge.

Currency fluctuation

As well as falling victim to inflated charges on exchange rates, émigrés are also at the mercy of currency fluctuation as they are rarely able to transfer all their assets in one go. Exchange rate fluctuations can have a huge impact on a person's future wealth because at various points during the process they will have to convert some or all of their assets into the local currency of the new country.

"In the last few months, for example, would be émigrés have seen GBP/AUD fall from around 2.70 to 2.36. This means the average family emigrating with assets of £250,000 will be starting their new life in Australia with AUD 85,000 less as a result of exchange rate fluctuations," states Bodega.

Mark Bodega added: "The earlier you begin thinking about your currency requirements, the more likely you will be able to start your new life with as much money as possible. The majority of people emigrating from the UK are not millionaires jetting off to a luxury island, but everyday people who are likely to be most affected by banks charging over the odds for currency exchange and losses through currency fluctuation when transferring their worldly goods overseas."

For more information, visit hifx.co.uk