Retirees living overseas face pension shortfall

| April 14, 2009 | 1 Comment
Retirees living overseas face pension shortfall

According to foreign currency firm, FC Exchange, pensioners living overseas face a pension shortfall due to volatile currency markets.

In the last two year alone, the British Pound has lost a quarter against the US Dollar and the Euro.

As a result, FC Exchange estimate that someone currently receiving an annual pension of £17,000 would only receive roughly €18,700 – a fall of £6,000 compared with April 2007.

Meanwhile, against the US Dollar, the same pension would equate to $24,820 – a fall of £8,000 compared with two years ago.

Nick Fullerton, FC Exchange‘s MD, comments: “This recession is proving to be relentless and with retirement options slowly ebbing away, people need to look for alternative ways to make sure they get the most out of their money.”

“The majority of people who send their pensions abroad don’t think about using a currency broker. So effectively, they are just pouring money down the drain,” explains Mr Fullerton.

In related news, recent research by Aon, the insurer and pension provider, found that the value of private pension savings in the UK have been badly damaged by the credit crisis and the recession.

Aon calculates that 3.7 million people in the UK are affected and since the beginning of October 2007, their defined contribution savings have dwindled by almost 30%.

This represents a fall of from £552 billion to £391 billion, racking up a loss of £161 billion, over the period.

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  1. jim says:

    Only the better paid pensioners and the crooked politicians will be able to retire overseas. The UK, with rising unemployment, rising voilent crime, failing NHS, high cost of living, rising taxes is soon to become a land populated by the poor. I do note that our last two Prime Ministers fled to the USA asap. You dont see any heads of states retiring to the UK. Many politicians will follow suit when they lose their seats. They ruined this country, but left the options open for themselves. They sure dont want to live here, and they created this mess.

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