France has long been a popular retirement destination for British nationals, offering a distinct contrast in lifestyle, temperature, and culture despite its proximity. Around 150,000 UK expats live in France, accounting for 0.2% of the population, with active and welcoming expat communities spread around the country.

Whether you want to retire peacefully in the warm Côte d’Azur, relocate to the eclectic, modern cities of Marseilles, Paris, or Lyon, or buy a retirement property near the Alpine borders with Switzerland and Italy, there is a lot to think about.

Low cost of living (depending on location): While some parts of France, particularly Paris and the French Riviera, can be expensive, many regions have lower costs of living than many other Western European countries. This is particularly true for groceries and housing outside big cities.

Great weather: France enjoys a temperate climate, with pleasant summers and mild winters. The southern portions of France have a Mediterranean climate, with long, hot summers and short, moderate winters.

Fantastic food and wine: France is famous for its food and wine, and retirees can sample a wide range of culinary delights. Everyone can find something they appreciate, from fresh produce to regional specialties.

Rich culture and history: France has a rich culture and history, and retirees can visit innumerable museums, historical sites, and quaint towns and villages.

Beautiful scenery: France has a diverse range of magnificent scenery, from the beaches of Normandy to the mountains of the Alps. Retirees can enjoy outdoor activities such as hiking and riding.

Excellent transportation system: France has a well-developed transport network that includes trains, buses, and aeroplanes. Retirees can simply travel throughout the country to explore various locations.

Relaxed lifestyle: The French have a laid-back way of life, and retirees can take advantage of this.

Of course, there are some factors to consider before retiring to France, such as the language barrier, bureaucracy, and the topic we are going to discuss today, how to protect yourself against fluctuating exchange rates. But for many retirees, the advantages of living in France exceed the drawbacks.

Currency exchange in France.

If you are lucky enough to retire to France and purchase a property, you will have to convert your sterling into euros. How many euros you can purchase with your sterling is determined by the exchange rate, which fluctuates around every 3 seconds, and depending on what is going on in the world, it can be very volatile!

Over the last 12 months, the GBP/EUR exchange rate has moved around 4.3%, which doesn’t sound like a lot, but if you put that into monetary terms, it can be quite scary.

£400,000 converted into euros at an exchange rate of 1.1415 would give you €456,600.

£400,000 converted into euros at an exchange rate of 1.1914 would give you €476,560.

The difference is €19,960!!!

To ensure you do not get caught out by negative exchange rate movements that could suddenly increase the cost of your dream property in France, it’s a smart idea to speak to a currency exchange expert like Regency FX. Regency FX has a wide range of products and services that are designed to help their customers navigate the complex and ever-changing foreign currency market so they can time their exchange at the optimal time.

Forward contracts:

This option enables you to lock in a rate of exchange up to 12 months in advance, which is perfect for budgeting for a future transfer. It ensures that you are protected from any currency volatility and that your transfer remains stress-free.

Limit orders:

If you have a target rate in mind, let them know, and they can set an order to automatically purchase the currency when the market hits your desired level. This option puts you in control of your own transaction.

Market watch:

As part of their specialised service, your account manager will monitor the market and inform you of any trends or signals that could impact your currency transfer. This is essential when trying to navigate these volatile markets.

Rate alerts:

Their automated trading system monitors the market 24 hours a day and informs you when the rate hits your desired level. This gives you the freedom to go about your day, knowing that your rate alert is secure.

As a valued member of the Expat Network, Regency FX is pleased to extend a complimentary, no-obligation consultation to guide you through their currency exchange services, and you will also get access to preferential exchange rates. Please click here to request your free quote.

If you have any questions about international payments or would like a free, no-obligation quote, the team at Regency FX would love to hear from you.