British retirement communities across Europe have seen their spending power fall sharply when they face an uncertain future.
Hundreds of thousands of expat retirees live on worries Since June, when the pound slumped 15% against the euro. They rely on UK government, company and private pensions to make ends meet, but the monthly payments are made in pounds and it must be converted to euros before being spent. When the pound is strong it all works well, but since currency, crashed after the UK voted in favor of leaving the EU, it’s going very badly. For example, a pension of 500 pounds a month was worth on June 655 euros, while now it’s worth only 555 euros.
British expats who live in Spain told about hundreds of pounds that they lost monthly since the Brexit, and how their living standards just cutting off. Deirdre Anne Leeming and Allen Bowen are 2 British pensioners who live with their spouses in Spain. They told the CNN how is it when their monthly 2000 pounds’ pension cut by 250 euros every month since the Brexit. The 2 of them used to provide a very comfortable lifestyle but now it start to change. “We’ve had some good years” said Leeming “but it’s not looking good for the future. Brexit will make life very difficult”. Bowen said that he and his family been forced to “go for the cheapest products we can get”. Leeming have to pare back the number of games she plays at the bowling club, and if the pound drops further she may considering dropping it out entirely. Leeming summarized it that way: “We can still live reasonably well, but there’s less money to put away now.
British expats who live on France also suffered cuts. Barry Leech, a president of organization helps to expats in southern France, said frustration is mounting over the UK government’s handling of the aftermath of the Brexit vote, “People are trying to survive purely on their old age pension…I’ve got people going to the food banks”. Leech said the British government needs to do more to protect the interest of retirees "If the people we put our trust in, the politicians, don't understand our plight, then what hope have we going forward?" he asked.
Returning to the UK simply isn’t an option for the British expats who lives in Spain and France. Home prices are relatively low in those countries compare to the prices in the UK, and the expats can’t afford a home in the UK. One expat, John Welch, 73, even sold his home in France but can’t move back to the UK because he can’t afford a home there.
But not only to afford themselves a descent house in the UK it’s impossible for the British expats now, even to come for a few weeks visit in the UK, as they did every year before, those cannot be afforded now. Allen Bowen from Spain told the CNN: ““Every year we go over the UK for a couple of weeks to see our family, but we haven’t done that this year – just no extra money”.”