The value of the pound has dropped significantly around the world, meaning anyone with a pension in pounds converting it to a local currency has seen a big loss in income.
London, UK (PRWEB UK) 20 June 2013
According to a Telegraph article published on the 18th of June, British expats living overseas have lost more than £10.6bn on their pension incomes since 2007 because of the weak pound.
The research conducted by HiFX showed that expats living in Europe fared the worst, and that in April 2007, a monthly pension income of £441 was worth €656, but is now only worth €510.
Expat pensioners are typically living on a fixed income and tight budget, making even a small drop in income potentially devastating.
David Retikin, Director of Operations at Pryce Warner International Group, commented: “This new research confirms in no uncertain terms what has been an open secret for several years. The value of the pound has dropped significantly around the world, meaning anyone with a pension in pounds converting it to a local currency has seen a big loss in income. QROPS overseas pensions can help fix this, as they allow Brits to transfer selected pension assets overseas, and denominate them in a new currency. This means that they eliminate the problem of losing money from currency fluctuations in the future.”
Mark Bodega, of HiFX, commented: "The global economic downturn hasn't settled down in any way. Unfortunately, Britons 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. Pensioners have been struck hard by the ongoing financial crisis, as well as importing and exporting volatility, which has had a dramatic impact on exchange rates."