British expatriates older than 55 years of age are increasingly repatriating to the UK due to concerns about the cost of living abroad and the weakness of their currency.
According to a recent article by Move One, returning home may be the only way for UK expat pensioners to preserve their income in pounds.
Recently released figures warn that unfavorable exchange rates could force older British expats to return to the UK. British expatriates older than 55 years of age are increasingly repatriating to the UK due to concerns about the cost of living abroad and the weakness of their currency.
It was announced by currency specialists HiFX that transactions in euros to sterling made by UK expats have increased by an amazing 175% during the last six months. USD to sterling transactions have also increased by 120%. Analysts have suggested the reason behind this recent trend is that the weakened sterling has prompted older UK expats to move back home on a permanent bases.
In a report by the Telegraph, Director of HiFX, Mark Bodega, commented: “We all know that weakness of sterling means that the cost of living is growing steadily for expats, especially those in Europe. Expat pensioners have seen their income drastically reduced, and many have decided they just can’t afford to live or have a home abroad any more.”
Not only has the weak pound forced UK expats to consider a return to their homeland, but research from Lloyds TSB International showed that more have moved their money into offshore bank accounts. The percentage of expats holding their accounts offshore has increased from 26% in mid-2010 to 42% in January this year. Expats are increasingly taking measures to protect the income they receive in sterling and offshore banking offers reduced charges and less punitive exchange rates for transfers .
If the pound value remains low, many older UK expats are likely to return to their homeland in their efforts to preserve the value of earnings as much as they possibly can.