BRITISH pensioners living in Spain will get more bang for their buck after sterling climbed to its strongest level against the euro in 17 months.
The pound rose 0.25 per cent on Monday to 84.11 pence per euro, having briefly touched 83.95 pence earlier in the session – its highest level since May 2025.
The euro has come under pressure amid growing uncertainty in France, where some of the worst street unrest in years have raised fresh questions about the country’s political stability.
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More than 2,500 people have been arrested since protests over the cost of living and school conditions snowballed into full-scale riots at the weekend.
Around 1,500 businesses have been looted or damaged and 1,000 police officers injured in the chaos with damage costs expected to run into the hundreds of millions of euros.
The violence has fuelled wider concerns about political instability across Europe, with smaller-scale unrest unfolding in countries including Portugal, Italy and Albania.
Rising energy costs have also added to the pressure on the single currency, with natural gas climbing to a four-year high.
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Sterling, on the other hand, has stood firm thanks to stronger-than-expected UK economic data and easing concerns over the government’s fiscal outlook.
For British pensioners living in Spain, the stronger pound is likely to provide a welcome boost to their monthly budgets.
Those receiving pensions in sterling but paying everyday expenses in euros will find their money goes further, helping to cover costs such as groceries, rent and utility payments.
The benefit can be particularly significant for retirees relying on a fixed pension income as even modest exchange rate movements can change how much money they have at their disposal each month.
The precise benefit will depend on the exchange rate provided by their bank or currency provider, as well as any transfer fees.
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