British retirees living abroad and claiming a UK State Pension could see their pensions hit if the pound is devalued.
It has been suggested that new Bank of England governor Mark Carney, who started in the role on 1 July, could annouce devaluing of up to 15 per cent.
His arrival is also expected to introduce a policy of 'forward-guidance' for interest rates. This policy will see the central bank flag up what is expected to happen to interest rates beyond the next policy vote.
It is hoped that this policy will give lenders more certainty that they can access cheap cash for a long time to come.
At the start of 2007, expats in Eurozone countries typically received €1.28 to the pound. This has since dropped to around €1.16.
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Nigel Green, chief executive of the deVere Group, said: "We expect the incoming Bank of England governor to devalue the pound by up to 15 per cent. 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."