Pensioners say Hasta Luego to living La Vida Loca

With news out this week that Britons expect just short of a £1000 cut in their final pensions pot, those living abroad will be facing an even higher hike due to volatile currency markets having seen Sterling loose around 25 percent against the US Dollar and Euro in past two years, according to foreign currency experts, FC Exchange.

Today, someone receiving an annual pension of £17,000 would only receive roughly €18,700 in Euros – a £6,000 drop on two years ago. Against the US Dollar, the same pension would equate to $24,820 – an £8,000 drop on April 2007.

Nick Fullerton, MD of FC Exchange, 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. We know how volatile the currency markets are – Sterling has lost one percent against the Euro since yesterday– so using a specialist currency broker could make all the difference between receiving a healthy pension, or losing huge amounts due to poor exchange rates and extra costs.”