British pensioners have been hit hard by the recession, says foreign exchange specialist HiFX.

Over one million British citizens are living overseas and receiving state pension. HiFX estimates a five million pound loss to their wages due to the weak pound.

Those living in New Zealand and Australia have been hit hardest. Ex-pats living in New Zealand are worst off with an estimated loss of £103 in the last three months, closely followed by those living in Australia who have lost an average of £85, based on an average state pension of £628 per month

The last four months have seen cuts to pensions in Europe of £56 and £34 in the States.

On top of the effect the weak pound has on ex-pat pensioners, Brits living overseas spend an average £300 on bank charges annually to change over currencies.

It is recommended that pensioners living abroad should use one of the Regular Payments Abroad services offered by UK currency specialists to help combat charges.

With further falls in the value of the pound predicted, pensioners are urged to do what they can to keep as much of their pension enacted as possible.