British pensioners returning to Blighty

Almost half of Brits abroad who are sending money back to the UK are aged 65 and over, suggesting that those pensioners who retired to the sun have been hit hardest by the recession and are being forced back to the UK, reveals currency specialists HiFX.

The currency specialist, who manages the transfer of over £200 million back to the UK each year, has seen a 180% increase in the number of euro to sterling transactions and a 111% increase in the number of US dollar to sterling transactions in the past six months, compared to the same period last year.

Not only are more over 65s, than any other age group, repatriating money, but they are also sending home larger amounts. This suggests that they are selling up property and returning home. In the last 6 months almost a third (32%) of the transactions over £70,000 have been made by over 65s.

According to HiFX, the pound's fall to historic lows in recent months has meant that the cost of living or running a holiday home on the continent has risen to unaffordable levels for some pensioners, whilst others are looking to cash in on sterling's weakness by selling up and investing the money back in the UK.

Mark Bodega, Director at currency specialists HiFX explains "We've calculated that British pensioners living in Europe have potentially lost out on almost €10 billion of their income in the last two years due to the falling strength of sterling. When faced with this drop in their income, it's no surprise that some pensioners are finding themselves forced to sell up.

However it's not all doom and gloom. Many Brits who have retired overseas bought their properties as holiday homes 20 years ago and have seen the value of their property soar. Even now when the property market is slowing around the world, many older Brits have made money on their overseas property and are choosing to cash in their international assets now in order to make the most of sterling's depreciation."