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British pensioners lose £10bn by living abroad

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
17/06/2013

British pensioners living overseas could have lost more than £10bn since 2007 due to the falling strength of sterling, says a new report.

Foreign exchange firm HiFX analsyed the top 13 countries where over one million British expat pensioners live and receive state pensions. 

It found that an expat pensioner living in the eurozone claiming a state pension abroad could have seen their monthly pension income of £440.60 worth anywhere between €655.60 in April 2007 and €510.40 in April 2013, a difference of €145.20.

Pensioners in South Africa get more for their money at ZAR13.70 against sterling, having fallen from just ZAR14.40 in April 2007.

Pensioners in Europe are facing the worst exchange rates due to the on-going financial crisis hugely impacting exchange rates. They currently get €1.16 against the pound, falling from €1.49 in January 2007. Those in Switzerland have taken one of the biggest hits, going from 2.43 francs against the pound to 1.41 francs.

Mark Bodega, director at HiFX, said: “The global economic downturn hasn’t settled down in any way. Unfortunately, Brits living abroad and receiving a fixed income in sterling have been hit particularly hard, missing out on £8.9bn since 2007, and could not have failed to notice that they are now receiving less and subsequently now have a big hole in their pension pots.

“Pensioners have been struck hard by the on-going financial crisis, as well as importing and exporting volatility which has had a dramatic impact on exchange rates.”