The majority of former UK citizens intend to remain overseas in their chosen countries, despite the financial impact of the recession and foreign exchange trading rates.

A survey by HSBC shows 19 per cent of expats reported a rise in living costs, but 85 per cent of expats intend to weather the effects of the economic slowdown abroad.

Further figures reveal 60 per cent of respondents have reduced their spending on luxuries, while 70 per cent have slashed their household budgets in response to the credit crisis.

Commenting on the findings, financial advisor Shelter Offshore stated they may inspire some Brits to move overseas.

"This hopefully will give you a confidence boost to know that no matter how bad it gets, it's still better to be living overseas," said the company.

According to the Telegraph, finance expert Hargreaves Lansdown recently stepped forward to encourage Brits to use the open-market option when purchasing pensions, as this can add 40 per cent more to annuities.

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By Linsey Summers