One in five expats claims a sterling pension, with more than a quarter of Brits living in Spain (28%) and a third of British expats in Germany relying on this as their core source of income, according to Moneycorp. More than half a million pensioners living in Commonwealth countries such as Australia, Canada and New Zealand suffer a further blow because their state pensions don't rise each year in line with inflation. Only those living in the European Economic Area and countries with reciprocal agreements in place with the UK, such as the U.S. and Jamaica, are protected against inflation. Yesterday, these pensioners lost their fight in the European Court of Human Rights to prove this pension freeze violates anti-discrimination rules. Tim Finch, head of migration at think tank the Institute for Public Policy Research says: 'The weakness of the pound will mean more people will lose jobs and find it harder to live overseas and come home. This is likely to be a growing trend over the next few years. 'Generally, the big wave of lifestyle emigration where people got their place in the sun for a better life was a reflection of the boom years when you had high house prices and decent pensions.