4th August 2014
More than six million Britons plan to flee the UK when they retire. Of the estimated 3.2m UK adults planning to retire in Europe, according to a survey from retirement specialist MGM Advantage, Spain is by far the most popular destination after getting 26% of the vote, followed by France in second place with 17%. Italy comes in third place with a 10% popularity rating .
Looking further afield an estimated 3.2m UK adults are planning to retire outside Europe and the most popular destination is America, with 16% of votes. Australia follows in second place with 14% while the Far East ranks third, with 13%.
The top 10 retirement destinations are:
|1st: Spain||6th: Canada|
|2nd: France||7th: Italy|
|3rd: USA||8th: South East Europe|
|4th: Australia||9th: India|
|5th: Far East||10th: Portugal|
Andrew Tully, MGM Advantage commented: ‘A huge number of people harbour a desire to retire abroad. Thoughts of better weather, cheaper living costs and potentially cheaper property than the UK can be a strong draw. But, thinking that your regular holiday destination can also be your ideal retirement home might be hit with flaws. 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. As an example, if you retired to Canada ten years ago, your UK state pension would now be worth 42% less than if you had retired across the border in the US. Or put another way, your pension would be worth £1742 more a year by simply choosing the US as a retirement destination rather than Canada.2
Top tips for retiring abroad