London, UK (PRWEB UK) 25 October 2013
Pryce Warner International Group – According to Moneyfacts.co.uk, research recently published by the currency exchange firm HIFX shows that British expat pensioners have lost over £10.6bn in pension income since 2007.
This is due to the fact that the pound has dropped in value against other currencies. This means that when the British state pension is converted into the local currency of pensioners living overseas, the value and purchasing power of the pension drops significantly.
David Retikin, Director of Operations at Pryce Warner International Group, commented: “Since the recession in 2007/8 we have had many expats come to us experiencing problems due to the loss in pension income that has resulted from the weakening Sterling. Whilst QROPS overseas pensions cannot accept the transfer of UK state pension rights, most other UK based pensions are allowed, and a transfer would mean that expats immediately stop losing money from the weak pound. QROPS and multi currency investment accounts are currency diversified, which means they do not suffer losses against fluctuations in the way other investments can.”
Expats in Europe have suffered particularly badly, with the average monthly state pension having lost €145.2 in value over the past six years.
Mark Bodega, director of HiFX, commented: "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.”