Expats Squeezed By Rising Inflation

Expats in Spain, Italy and France are continuing to suffer from accelerating inflation across Europe according to the Organisation for Economic Co-operation and Development (OECD).

London, UK (Pryce Warner International) May 12th, 2011 – OECD inflation figures show a rise to 2% in France, 3.6% in Spain and 2.5% in Italy.

While high, these figures still show an improvement on U.K. inflation, which is currently at 4%. This raises to prospect of more Brits taking up residence abroad in an effort to escape the U.K.’s financial woes.

The figures from France and Italy also remain below the E.U. average of 2.7%. These rises come after last month’s Eurozone interest rate increase, the first since 2008.

Rising interest rates and inflation have led some Expats in the France and Spain to up-sticks and return to the U.K., despite the higher inflation rate and Austerity measures.

When moving and especially retiring abroad it is vital to ensure that your income will outpace inflation and interest rates, as well as be safe from currency fluctuations.

There are several possible ways that Expats can protect themselves, and avoid the possibility of having to return home unnecessarily. Transferring your pension overseas is one of the most effective methods for ensuring your income is protected. QROPS and QNUPS overseas pensions are based offshore and therefore offer higher interest rates, and also form part of a tax wrapper that is currency diversified.

Setting up a mortgage overseas and professional tax and/or asset management can also ensure that your sources of income will be fully protected from inflation and interest rate rises.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International Group, a Financial Services Group who are specialists in the Provision of Pension Plan & Asset Management for Expats commented: “The rise in both interest rates and inflation mean that many Expats may be vulnerable to losing their homes and may have to return to the U.K. This is a trend that is likely to continue, meaning the amount of people having to return to the U.K. may increase. Considering the relative inflation rates and austerity measures in the U.K., this is a worrying prospect. There are often relatively simple methods Expats can take advantage of to ensure this does not happen, such as moving your pension, mortgage or assets overseas. With over 35 years of experience, Pryce Warner International Group have a proven track record of helping Expats get the most out of life abroad.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

-------------------------------
By: Aneil Fatania
Financial Editor
Pryce Warner International Group
For any corrections of factual information contained within our news items please contact our editor.
Email: af@prycewarner.com
Skype: newsdesk-pwi
Telephone: U.K.- +44 20 3364 5016 or Monaco - +377 97 97 29 22