Expats watch as their pensions diminish

Expat pensioners have been hit with an income cut of up to 50 per cent over the last decade as the pound has weakened.

Those living in the eurozone have seen the buying power of their pension fall by more than one fifth (22 per cent) over the last ten years, while people who have set up home in Australia have seen a 47 per cent drop, according to figures compiled by pensions administrator Equiniti.

Equiniti Paymaster oversees pension payments to more than 50,000 expat pensioners, many of whom are former public sector workers, receiving an average pension of £5,600 a year.

The largest proportion of these pensioners have retired to the eurozone. A £5,000 pension would have brought in just under €7,300 ten years ago, while the same amount now would only be €5,692.