International money transfers for retirement & pensions
Table of Contents
Author: Luke Eales
We only list companies that are trustworthy and appropriately licensed. Our aim is to give you a comprehensive view of the regulated money transfer marketplace.
DisclosureMoneyTransfers aims to help users find the best money transfer provider for their needs. To support our free service, we may earn a commission from some of the providers listed in our search results. The commission may also impact the ordering of the providers shown. Our reviews are independent from this and are based on our editorial policy, research and testing of dozens of remittance providers on the market.
Table of Contents
You worked hard to enjoy your retirement in the sunshine. Unfortunately, the banks could take their slice of your retirement fund unless you convert currencies smartly. I'll explain how to safeguard your savings & pension when transferring money abroad.
Retiring abroad requires transferring pension funds and managing international finances. Money transfer companies offer better rates and lower fees compared to banks, helping to preserve your retirement savings. Consider a multi-currency account for flexibility and to avoid frequent conversion fees.
Travelling, or moving abroad more permenantly, is on the checklist for many in retirement.
Either way, you'll need to bring money with you across the globe, and likely spend it in a foreign currency.
This currency conversion opens the door to hidden costs & high fees eroding your retirement nest egg.
Thankfully, there are smart ways to transfer your savings, residual income and pensions to your new location cheaply & easily.
How to transfer retirement savings & pensions
When making the conversion from US dollar to your new destination currency, follow these tips:
Avoid the banks - while convenient, their rates can be up to 5% worse than money transfer specialists. Use a dedicated transfer company and you could save thousands
Compare before you send - there are dozens of money transfer companies to consider. The cheapest today might not be tomorrow. Use our rate search tool and you'll know where the best deals are each time.
Consider a multi-currency account - these accounts make international transfers easy, but also help you manage and spend your money like a local.
Social Security, private pensions & 401k distributions
Many retirees rely on regular withdrawals or payouts from their retirement funds.
Whether you receive 401k, Roth IRA or Social Security payments, it's usually possible for them to be made to an international account.
You can also choose to keep your US bank account open, receive the payments into this account, and then move them abroad.
Taxation
Retirement income is usually subject to taxation. Qualifying distributions from Roth IRAs should be tax free.
Don't forget that reporting requirements in the US will still apply, including complying with the Foreign Account Tax Compliance Act, and regular IRS tax return filings.
US income tax will likely apply to both state and private retirement income. There may also be local taxes, however the US maintains tax treaties with certain countries to prevent double taxation.
Take a look into Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC), and speak to a specialist tax advisor.
Retiring abroad FX case study
Let's look at an example.
Eric and Sandra are planning to buy a property in Portugal and enjoy their retirement in Europe.
They plan to buy a property for €300,000 using their accumulated savings, while renting out their US house and drawing from their 401k.
Instead of directly wiring money from Bank of America to the property lawyers, they used a currency broker like Currencies Direct. Their saving was almost $7,500, as the exchange rate offered was substantially better than their bank.
For their ongoing pension withdrawal and rental income, payments were made to a multi-currency account. This allows them to hold US dollars, and convert to EUR at any point for a low fee.
Compare International Transfer Companies
Find options for transferring your retirement wealth abroad.
The Best International Money Transfer Companies
Using your bank for international wire transfers is expensive due to poor exchange rates and high fees.
Best Multi-Currency Accounts
The average cost of an international transfer from a bank since 2016 has been upwards of 17% of the total send amount. When receiving money into your bank account you will pay fees of around 3% just to receive the money.
Best Currency Brokers in 2026
Before diving deeper into the exchange brokers, here’s a quick overview of who will benefit from using a currency broker.
Contributors
Please share your experience with …