The pound could be further devalued following Mark Carney's taking office as governor of the Bank of England, with devastating effects for pensioners living abroad, a national IFA group has warned.
DeVere Group chief executive Nigel Green warned that expat pensioners could suffer particularly hard should the pound see a further devaluation in the coming weeks.
Green said that he expected the governor to pursue a policy of 'forward guidance' - a way of providing greater certainty to lenders that rates will remain low for a minimum length of time.
Green said: "We expect the incoming Bank of England governor to devalue the pound by up to 15%. This would be another devastating blow for Britons overseas who live on a fixed sterling income.
"Many of these British retirees have, through no fault of their own, lost more than 20 per cent of their income since the financial crisis hit - a problem that's been compounded by soaring living costs and higher taxation in most major expatriate destinations.
"Anyone who lives abroad and whose primary income is a UK state pension will certainly have been feeling the financial pinch in recent years, and it is likely to get worse before it gets better due to Mark Carney's expected stance monetary policy."
Green warned that expats in the eurozone countries were already suffering the most from previous devaluations, which meant that euros have risen in price by 32 pence to the pound since 2007.
He advised pensioners affected to be pre-emptive and set up automated payment systems on currency platforms to help mitigate the problem.
"With there being a strong chance that the new Bank of England governor will further devalue the pound, expatriate pensioners living on a fixed income in sterling should consider using an online currency platform, where they can set up an automated payment system in advance, essentially guaranteeing a minimum and/or maximum rate at which currency is exchanged."
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