Expats forced to curb spending

The weak Pound against the Euro means many expat pensioners living in Spain have had their income slashed by 20 per cent...

Many British expats who retired to Spain are being forced to tighten their belts as a result of Sterling's dramatic fall against the Euro this year.

A report in The Independent last week claimed those in Spain relying on state pensions had seen their income slashed by up to 20 per cent in the last year.

Many Brits who retired to the costas looking for sunshine and are lower cost of living, are now faced with financial worries.

British retirees in popular areas, such as the Costa Blanca are facing rising living costs every day and those who are reliant on fixed state pensions are now struggling to make ends meet.

Since January the Pound has dropped from €1.40 to its current rate of €1.16 and this is making people very worried.

Although living costs in Spain are generally lower than in the UK it is only when people retire they realise they may not have as much spare cash as they thought.

If they don't speak Spanish they may have to hire a translator when they go to visit a doctor and they don't get benefits such as attendance allowance and other home care they would receive in Britain.

Some retirees have seen their income drop by up to a third, and they are struggling financially at a time when they need money most.

Although many expats are hoping to cut back on luxuries and ride out the storm, others are being forced to return to the UK.

Many believed that although there would be fluctuations in currency the Pound would remain strong and none predicted the rate of exchange would ever fall to this current low.

It highlights the need even more to ensure if you are planning a move to Spain you look at your finances carefully, so you can allow for the kind of currency fluctuations we have seen this year.

Caroline Flint, British MP, FCO Minister for Europe, met with representatives from Age Concern Spain, the Royal British Legion, and other partners who are working closely with the consular network to give assistance to British people who've moved to Spain, earlier this week.  

Key issues discussed included the impact of the increased value of the Euro against the Pound on pensioners in Spain; the range of problems people from the UK are facing when buying or owning property there; the need for people to get information about any benefits they may be entitled to in Spain, healthcare provision and advice for those wishing to return to Britain.

Ms Flint told the website Sur in English, "We will continue to improve and extend our advice and information to people, both in the UK and for British nationals in other EU countries. But anyone thinking of moving to Spain - or moving back to the UK - should do their homework before making the next step."

Source: www.homesworldwide.co.uk