If you are worried about the value of your UK pension here in Spain, you may be considering returning to the UK. But, will that actually increase the value of your pension in real terms? The honest answer is that it is very unlikely to increase the value of your pension in real terms, and there are some very good reasons for that.
The socalled "Brexiters" were quick enough to shout about the benefits of leaving the EU, and sadly many people believed them. The fact is that even if you are receiving your pension into a UK bank, you are likely to have face the fact that it will be worth less. Why?
When you take a closer look at the UK economy, you will soon appreciate that very few goods are manufactured in the UK. Big ticket items such as refrigerators, washing machines and many other household goods, are imported from the EU or other countries. The drop in the value of the Pound will make it more expensive for UK householders to purchase these items.
What about energy? This is another part of the UK economy which will be affected by the poor value of the Pound. Today, the UK buys a lot of energy from other countries, and will continue to do so. The payments are being made in Euros to foreign energy generators, and they are probably going to be very relucant to accept Sterling in payment of their bills. Will the energy companies or the UK government absorb the difference? That is very unlikely and the end result will be that energy prices will rise, and the consumer will have to pay for that.
Are UK exports going to be that great? The likelihood is that exports to other countries may even go down. It has nothing to do with exchange rates, but it has to do with the tariffs, and so called commodity codes. Cars manufactured in the UK may have tariffs imposed on them, and that means that they will become more expensive to the end user. Reading the foreign press, it is not the only factor EU consumers are worried about. They are worried about the ongoing costs related to cars such as spare parts.
All of this will, will have financial implications for the UK. The only good thing so far could be that it could be cheaper to top up your UK State Pension if you have to buy currency in order to do so. I just checked out a couple of options to top up my UK State Pension, and was surprised to find how much I could save by using a quality expat foreign exchange service. If you need to top up your UK State Pension, now could be a very good time to check out rates of currency transfers. Really there has never been a better time to save on currency exchange rates if you need to invest in something in the UK. You may even want to check out the UK stock market.