24th August 2015
Sunny Spain is the top destination for British retirees seeking a new life abroad finds new research.
The study from financial services firm Retirement Advantage canvassed over-50s who have yet to retire, asking them if they plan on moving abroad when they finish work for good, and if so, where to.
While Spain is the hot favourite, taking 24% of the vote in terms of European destinations, France came a close second with 20% while South East Europe, including Greece, Turkey, Cyprus came third.
As for places outside Europe, North America was the top choice with 22% of the vote.
Andrew Tully at Retirement Advantage commented: “We all dream of year round sunshine and an easier pace of life when thinking about retirement, and a number of us are hoping to enjoy that with plans to move abroad. Cheaper living costs and potentially cheaper property than the UK can be a strong draw, and you might well be attracted to living in your favourite holiday destination.”
However he warned that thinking that a holiday spot can also be your ideal retirement destination might be hit with flaws.
He said: “Without the right planning, savings and advice, you can quickly get caught out by local tax laws, exchange rates and other financial arrangements, turning a retirement dream into a potential nightmare.
“You might also get a nasty shock later in retirement when you find your UK state pension does not increase annually because the country you choose to retire to does not have a reciprocal agreement in place with the UK.”
For example, if you retired to Canada 10 years ago, your UK state pension would now be worth 41% less than if you had retired across the border in the USA. Or put another way, your pension would be worth £1,762 more a year by simply choosing the US as a retirement destination rather than Canada.
“To help navigate the complexities of retiring abroad, it is vital people seek professional financial advice. There are a number of firms who specialise in providing advice to budding expats, which could make the world of difference between the retirement of your dreams or an altogether more challenging experience,” added Tully
European destinations Outside Europe
|1st: Spain (24%)||1st: North America (22%)|
|2nd: France (20%)||2nd: Outside Europe but region not disclosed (17%)|
|3rd: South East Europe (9%) (e.g. Greece, Turkey, Cyprus)||3rd: Far East (15%)|
|4th: Portugal (6%)||4th: Caribbean (12%)|
|5th: Elsewhere in Europe (6%)||5th: South America (11%)|
Top tips for retiring abroad