Retired Expats' Worries about Weak Pound

LONDON, ENGLAND, April 13, 2011 (Press-News.org) A survey by Lloyds TSB International has found that retired Britons stationed abroad are increasingly concerned about the falling value of the Sterling.

- Concerns about reduced pensions income, new research finds
- More than two thirds of expat pensioners now worried about currency fluctuations
- Pensioners shifting bank accounts offshore as Sterling weakness continues

Lloyds TSB International Banking has conducted a survey that shows a growing concern among expat pensioners about their money in the wake of the financial crisis. Over two thirds of respondents to the poll say have worries about reduced pension income, with many of the 1.1 million British pensioners living overseas who receive a pension in Pounds Sterling being affected by poor foreign exchange rates when they transfer cash to the countries they live in. As a result, many are now looking for ways to reduce this impact by using accounts where they can save money on foreign exchange charges.

Sterling has suffered a fall of more than 20 per cent against the Euro since the financial crisis and remains weak against currencies in a host of places which are popular spots for retiring expats. The Lloyds TSB International study reveals less affluent people who fall into this group are now expressing serious concerns about international currency fluctuations and how this could damage their financial situation. It finds 89 per cent of respondents with an income of less than GBP25,000 per annum are now expressing these concerns.

Lloyds TSB International Managing Director, Jakob Pfaudler, comments: "The weak pound has cut some expat pensioners' income by a quarter since the financial crisis." He added: "While many people can cope with a temporary fall in earnings, the pound has now been weak against the Euro, for example, for about three years so it is little wonder that many expat pensioners are worried about their continued loss of spending power."

It was also revealed that significantly more retiring expats are moving their money into offshore bank accounts. In fact, 42 per cent of those polled said this was a decision they had taken, compared to the 26 per cent who were doing the same just six months ago.

Jakob went on to explain how he believes the trend may be a cause of long-term Sterling weakness. "The weak pound has been a problem for many expats for some time now so many of them have been looking for ways to protect the income they receive in Sterling. It then makes perfect sense that offshore accounts would rise in popularity because they dramatically reduce the charges and punitive exchange rates incurred when moving money between two countries."

In addition, the research showed that along with more offshore bank accounts use by expats, the UK has seen a major fall in the number of people saving money in UK accounts - with this figure dropping from 39 per cent to 23 per cent between July 2010 and March 2011.

Pfaudler concluded by saying: "In this uncertain economic environment, the flexibility offered by multi-currency offshore accounts through their competitive exchange rates and lack of transfer fees is a serious plus that expats should consider."

Lloyds TSB International helps over 12,000 people set up a new international bank account each year. The bank provides financial guidance and a checklist to help people emigrate at: http://www.lloydstsb-offshore.com/international-current-accounts.