The Motley Fool

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.

Dividends can provide income, and The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

This ‘chef’ is cooking up big returns

Gold: You are the biggest loser

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool writer/analyst Catherine Baab-Muguira does not own shares in any of the companies mentioned in this article.



NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.