Pensioners living in Australia are left with up to 47% less buying power from their retirement income now than when they first retired, pension administrator Equiniti has warned.

The firm, which administers pension payment to 50,000 expat pensioners, found those that moved to Australia with a £5,000 pensions experienced a drop of 47% in their retirement income over 10 years, from AUD 13,625 to AUD 7,253.

The largest proportion of ex-pat pensioners, 12.45%, retired to the eurozone, where 2003’s retirees saw their pension purchasing power fall by 22%. It explained that those with a £5,000 annual pension would experience a fall of €1,608 since 2003, bringing in only €5,692 compared to about €7,300 10 years ago.

In contrast, pensioners in South Africa and Jamaica have seen an increase in the buying power of their pension over the last 10 years.

Equiniti Paymaster attributes the decline in value to a decade of a weakening pound. Its director Keith Boughton said: “Ten years ago the value of sterling was significantly higher than it is today, and those emigrating abroad for their retirement enjoyed considerable value from their pension. A plummeting pound has left many expat pensioners unable to make ends meet and struggling to find other ways to protect the value of their pensions.”

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