British pensioners living in the EU have seen their income fall by 11% in ten years, according to expat pension managers Equiniti Group.
The latest hit is due to the uncertainty over the EU referendum in June. Since the government announced the date, the euro exchange rate has dropped by 2%.
Concern over the future outside the UK should the country vote to leave the EU coupled with the fall in pension values has prompted 72,000 Brits in Spain and 7,000 in Italy to return to Blighty in the last two years, according to official figures cited by The Times.
Analysts said expats were deciding to repatriate because of fears over their future tax status and the protection of other rights in the UK.
Other factors pushing expats include rising food and energy prices and the high cost of private healthcare, especially if the free medical care entitlement is withdrawn after a vote to leave.
These are among the factors which analysts believe could trigger a large exodus from the continent if voters opt to leave the bloc.
British pensions are raised annually in line with inflation only for those living in the EU and a few other countries. This, too, could change after an exit vote.
Expats outside the EU have not fared equally. Expats in South Africa and Jamaica are the only ones who can count more income in the last decade. For those in South Africa, the difference is a whopping 93% more than in 2005.
That was due to substantial weakening of these country’s currencies.
Others, however, have taken a sharper hit. Expat pensioners in Switzerland have suffered a 37% fall while those in the US have had to cope with 24% less than in 2005.
Equiniti director Andy Brown advised anyone planning to retire abroad to “look at the numerous ways to receive international payments, as the ‘headline’ exchange rate is not necessarily an indication of the total cost of the transaction”.
There are an estimated 1.2 million Brits living in the EU but 2.9 million Europeans in Britain, according to UN data.
