Pensioners abroad have arguably been hit the hardest as they rely most heavily on their savings and pensions built up in the UK

four million Brits living abroad are planning a mass return to home shores after seeing their savings and income stripped by the plunging values of the pound and their property. Pensioners abroad have arguably been hit the hardest as they rely most heavily on their savings and pensions built up in the UK. They've been hit by a declining pound and falling interest rates.
The dramatic slump has slashed their income by a third and has turned Brits into the paupers of Europe.

Fears over job security and falling property prices are also giving expats second thoughts, according to research from foreign exchange specialist Moneycorp.
Some 845,000 Brits living in Spain and France have suffered an 8% drop in house prices in the year to August 2009 alone. This wiped €30,000 off the average property on the Costa del Sol.
Sterling has slumped from over €1.50 to £1 in January 2007 to close to parity, taking a terrible toll on the estimated 5.5m British expats, and particularly the 1.1 million pensioners living abroad. Moneycorp research shows that 70% of all expats are now considering returning to the UK.
A retired couple living in Spain, for example, both drawing a full state pension of £95.25 per week, will have seen their combined monthly income - on their pension alone - drop by €396 over three years, from €1,263 to €867.

The warning signs that hundreds of thousands of Brits may be ready to return to the UK started when the credit crunch began in 2008. That year, the number of expats returning home jumped by a fifth on the previous 12 months. The number of British homeowners downsizing or selling up and sending money back to the UK doubled last year, foreign currency specialist HiFX reports.

It has seen an 180% increase in the number of euro to sterling transactions and an 11% increase in the number of US dollar to sterling transactions in the past six months, compared to last year. More people over 65 than any other age group are repatriating.

Mark Bodega from HiFX says: 'The pound's fall to historic lows in recent months has meant the cost of living or running a holiday home on the continent has risen to unaffordable levels for many people.'

A weak property market is also proving to be a nightmare for many of the estimated 1.5m Brits who own homes abroad. Many are being forced to sell their property at a loss, particularly in countries like Spain.

The weak pound has proved a blessing for those who receive an income in euros, for example from renting a property. Sterling's slump means they will get far more pounds for their euros.

Brennon Nicholas, managing director at estate agency Cluttons Spain says: 'We have seen an increase in the number of people coming to us who are struggling because their pensions and savings do not stretch as far as they used to. They're selling up because of the favourable exchange rate but the market is extremely tough and there is a lack of buyers.'