Expat retirees are tightening their belts this Christmas as the spending power of their income continues to reduce as Sterling slips against the Euro.
According to Equiniti – which manages pension payments to retirees living overseas - the value of their income is 20% less than two years ago - the last Christmas before the EU referendum.
The company says the Euro has fallen by 3% over the last 12 months, following a 17% drop in the year after the vote. The effects are being exacerbated by inflation, which is currently running at 1.5% across the Eurozone.
Expats in Europe aren’t the only ones to be feeling the pinch. Brexit-induced exchange rate falls are also being suffered in other parts of the world, with retirees from Australia, Canada, and New Zealand seeing their income drop by 14%, and pensioners in the US seeing their income fall by 10%.
|Currency||Purchasing power of a £5,000 pension||% change|
|South African Rand||106,700||85,800||90,200||-15%|
|New Zealand Dollar||11,252||8,609||9,696||-14%|
Source: Equiniti, December 2017
Andy Brown, operations director at Equiniti, says: “Expat pensioners are always at the behest of the currency exchange rollercoaster and the stumbling Brexit negotiations are not doing them any favours. Anyone hoping to retire abroad will have had plans seriously derailed by the Brexit vote and the currency fluctuations.
“It is important to understand the implications of currency exchange rate movements on your budget and shop around for the best value international payments as the ‘headline’ exchange rate is not necessarily an indication of the total cost of the transaction.”
I have lived in Thailand 17 years. I am single with a dog. I live rent free .I really struggle to survive on on my uk pension. my saterlite TV is I months pension. I have the maximum pension. with no increase. I have German and Scandinavian friends who can't believe how small my pension is . We have money to help newly arrived immigrants but not our pensioners who contributed all thier working lives .Shame on you uk goverment