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Strong Aussie dollar hurting expat retirees

The strong Australian dollar, in combination with the weakening of some currencies including the British pound, has hit some expat retirees hard.

As The Sydney Morning Herald reports:

A decade of a weakening pound has left many British retirees living overseas with up to 50 per cent less buying power from their retirement income now than when they first retired – and those living in Australia are the worst off of all.

Statistics compiled by Equiniti, one of Britain’s largest pensions administrators which oversees work pension payments to more than 50,000 expats, show that those living in Australia have lost 47 per cent of their buying power due to swings in currency markets while those in the eurozone have seen spending power fall by 22 per cent…

In Australia, thanks to the resources boom driven strength of the the dollar, the British pension will only buy $A7253 compared with $A13,625 10 years ago.

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