Brits retiring abroad have seen their pensions drop in value

By Tom Farley, Wed 22 Jun 2011 - Published in Pensions

Brits planning to spend their retirement years and pension abroad may find this difficult, according to research from HiFX.

The foreign exchange firm noted that over one million ex-pats live overseas and claim a UK state pension.

However, since the financial crisis Brits in Europe have seen their pension income drop by an average of €250 (Ł222) a month.

Furthermore, many former UK residents are exposing themselves to potentially large bank charges when they transfer their income abroad.

Mark Bodega, director at HiFX, said: "Over the last couple of years everyone has felt the pinch of the global economic downturn.

"Unfortunately, Brits living abroad and receiving a fixed income in Sterling have been hit particularly hard, and could not have failed to notice that they are now receiving less from their pensions."

Recently, the coalition announced plans to raise the state pension age in the UK for both men and women to 66 by the year 2020.

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