Expat Pensioners’ income boosted but two thirds still worse off than a decade ago

Tue 24 Feb 2015

While the strengthening pound is good news, two thirds of the pensioners remain worse off than a decade ago

Equiniti, which manages the payments of over 60,000 expat pensions, warns that while the strengthening pound is good news, two thirds of the pensioners remain worse off than a decade ago.

The largest number of these 60,000 pensioners retired to the Eurozone where despite the fact that the Pound has risen by 10% in the last year they will still be 7% worse off than a decade ago. A £5,000 pension now buys 6,548 Euros compared to 5,963 in February 2014, but this remains 500 Euros short of what could be purchased in 2005.

Currency

%  abroad*

Purchasing Power of a £5,000 pension #

% change 2005 to 2015

Feb 2005

Feb 2014

Feb 2015

Eurozone Euro

12%

 7,030

 5,963

 6,548

-7%

Australian Dollar

10%

 11,685

 9,076

 9,592

-21%

US Dollar

9%

 9,164

 8,145

 7,452

-23%

Canadian Dollar

8%

 11,345

 8,561

 9,352

-22%

New Zealand Dollar

8%

 12,800

 8,957

 10,176

-38%

South African Rand

6%

 54,885

 89,281

 85,341

 55% (increase)

Thailand Baht

4%

 352,096

 265,285

 242,151

-45%

Swiss Franc

3%

 10,909

 7,285

 6,876

-59%

Jamaican Dollar

3%

 564,458

 868,755

 852,370

 51% (increase)

Philippines Peso

3%

 501,525

 363,477

 326,654

-53%

 

* Based on Equiniti data.

Andy Brown, Director at Equiniti, said; “Expat pensioners are always at the behest of the currency exchange rollercoaster and the Pound strengthening over the last 12 months has been a welcome relief for most, especially those in the Eurozone. However, many pensioners are still much worse off than a decade ago, especially those that retired in the United States, Canada, New Zealand and Australia. The hardest hit are those receiving their pension in Switzerland, Thailand or the Philippines.”