Expat pensioners and baby boomers are flocking back to the UK

Expat pensioners and baby boomers are flocking back to the UK in their droves according to figures from currency specialists HiFX. Over half (56%) of Brits aged over 55 are sending money back to the UK, highlighting that those who retired to the sun are continuing to feel the strain of the economic downturn, selling up permanently and returning all their assets to the UK.

In the last six months HiFX has seen a 175% increase in the number of euro to sterling transactions and a 120% increase in the number of US Dollar to sterling transactions compared to the same time last year.

Not only are the over 65s the group most likely to be repatriating money but they are also sending home the largest amounts. In the last six months almost a third (32%) of transactions over £70,000 have been made by this group. The amount of money baby boomers (55 to 64 year olds) are sending back to the UK has risen by 12% since 2009.

Mark Bodega, Director at HiFX, comments: "With the volatility of the pound and a degree of uncertainty remaining around the global economic climate Brits are continuing to feel the pinch and act cautiously. According to many of our clients they are returning home to the UK after seeing their savings and income stripped by the plunging values of the pound; selling property and other foreign assets. Expat pensioners have also seen their income slashed by a third. When faced with this drop it's no surprise that we are seeing more and more selling up and returning home."

Overall, HiFX has also seen a significant drop in the number of people sending small amounts back home with almost a quarter (23%) repatriating £30,000-£69,000. This suggests that many Brits are making a permanent move back to the UK, and due to the exchange rates they have built up their cash before sending it back to the UK to try to get better value.

In the last two years, the 1.2 million retired British couples all over the world claiming a pension have also seen their monthly pension incomes hit by Sterling's volatility. The worst hit expat pensioners are in South Africa, New Zealand and Australia. In comparison to the highs of 2008 a pensioner in Australia would now be AUD$973 worse off on a couple's pension value of £846.30.

Mark Bodega, Director at HiFX, continues: "With further sterling volatility predicted, any Brits who cannot afford to see the value of sterling decrease any further should consider services offered by many currency specialists in the UK, such as a Regular Payments Abroad service".

Advice for Brits looking to repatriate money back to the UK:

Regular Payments Service

For those that are making regular currency transfers and want to lock into an exchange rate, most currency specialists, including HiFX, offer a Regular Payments service.  Typically clients who use this service are making monthly transfers for a variety of reasons including:

mortgage payments
pension transfers 
salary transfers
repatriation of rental income

For those buying currency on a regular basis it can be time consuming and currency fluctuations can make budgeting impossible.  Also, the international transfer fees and commission charged by the banks can soon add up to a tidy sum.

Unlike your bank, the larger more established currency companies will allow customers to automate their payments via direct debit and fix the exchange rates for up to 12 months ahead so customers know exactly how much is being transferred every month.

Using direct debit, can save people up to £300 on transfer fees alone as the banks charge transfer fees of up to £30 on each and every transaction.  In addition customers make further savings as they'll also avoid the other charges - commission (most banks can charge up to 2% of the amount being transferred) and overseas bank receiving fees (depending on the destination bank account this can be up to another half a percent).  Depending on the amounts a client is sending they could save thousands of Euros a year on bank charges alone.  

Ad Hoc Transfers

Those who are uneasy about fixing the exchange rate for up to 12 months and are more bullish about Sterling's future should at the very least shop around for better exchange rates and compare the rates offered by their high street bank with a currency specialist particularly one which offers an online service for smaller amounts of money.