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Survey shows UK expats transferring savings to local currency
| Published: | 31 May at 6 PM |
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Research has shown that a majority of British expats are now transferring their nest eggs from sterling to the local currency of their host countries.
The survey, carried out by Lloyds TSB International, noted that 73 per cent of UK expats have already moved their savings to local banks in the local currency. By September last year, just 26 per cent held savings accounts in £ sterling, and by the present day the number had fallen to 13 per cent.
Local currencies are the most preferred in countries such as Australia, South Africa and New Zealand, as their base rates are far higher than those in the UK. Expats in the Eurozone, which has similarly low base rates, are also transferring their sterling holdings to euros.
Experts believe that the future of the Eurozone and its currency is looking brighter than that of the UK and the £ Sterling. Now that the breakup of the EU seems unlikely, money is flowing back to the euro, although Andrew Pope, Lloyds TSB’s senior economics advisor, considers that in the coming years the UK is less at risk than the EU.
The weakness of sterling is causing difficulties for retirees who transfer their UK state and other pensions to their country of residence, particularly if they are the victims of frozen pensions due to their chosen retirement location. Pope believes that the Eurozone is facing many more longer-term challenges than the UK, adding that he expects sterling to regain ground against the euro in the future.
The survey, carried out by Lloyds TSB International, noted that 73 per cent of UK expats have already moved their savings to local banks in the local currency. By September last year, just 26 per cent held savings accounts in £ sterling, and by the present day the number had fallen to 13 per cent.
Local currencies are the most preferred in countries such as Australia, South Africa and New Zealand, as their base rates are far higher than those in the UK. Expats in the Eurozone, which has similarly low base rates, are also transferring their sterling holdings to euros.
Experts believe that the future of the Eurozone and its currency is looking brighter than that of the UK and the £ Sterling. Now that the breakup of the EU seems unlikely, money is flowing back to the euro, although Andrew Pope, Lloyds TSB’s senior economics advisor, considers that in the coming years the UK is less at risk than the EU.
The weakness of sterling is causing difficulties for retirees who transfer their UK state and other pensions to their country of residence, particularly if they are the victims of frozen pensions due to their chosen retirement location. Pope believes that the Eurozone is facing many more longer-term challenges than the UK, adding that he expects sterling to regain ground against the euro in the future.
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