Retired British Expats Benefiting From Strong Pound

By Fiona Moore, for 16 July, 2014

Analysis from The Prudential shows that retired Britons living in the Euro zone have seen their state pension income rise by nearly ten percent over the past year, for the most part due to an increasingly strong British Pound.

The annual Euro value of the basic UK state pension has grown by EUR661.24 (USD900), compared with a year ago, to EUR7,344.44. In April 2014, the UK Government raised pension allocations from GBP110.15 (USD188) to GBP113.10, but this factor has contributed just a quarter of the appreciation.

However, Paul Fidell of Prudential warned that it is important "not to fall into the trap" of overestimating the State Pension's buying power. He said that British retirees in Europe should be aware of the risks from currency fluctuations and from living under an unfamiliar tax regime, and drew attention to impartial information available on the Government's International Pension Center website.

You can find our guide on UK pensions here:

Tags: Finance | United Kingdom | Currency | European Union (EU) | Expats | Pensions | Personal Finance | Europe | Pensions |


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