An unintended consequence of a British exit from the European Union could be that 400,000 British pensioners living on the Continent have their pensions frozen. That’s because unless there is a reciprocal agreement between the UK and overseas countries, British citizens who retire to those nations don’t receive the annual state pension increase.
The situation at present is that if you live in an EU country, or America, Turkey, and some others then when the pension increases in the UK you will also receive that increase. If you live in Canada, Australia and most Commonwealth countries then your pensions remains the same as it is at the time you leave the UK.
Over a period of time and especially if there is high inflation this could seriously reduce your spending power. If you had moved to France or Spain in 1995 and we had not been in the EU then you would be receiving less than 50% of your present pension. In 1995 the single state pension was £58.85 and for a couple it was £94.10. You can check out how it has changed by clicking State Pensions, recent history