Brits’ favorite retirement hotspots revealed

WORTHING, England – The “over 50” Bits, who have yet to retire, were polled on whether they plan on retiring abroad when the time comes to slow down a bit.

WORTHING, England – The “over 50” Bits, who have yet to retire, were polled on whether they plan on retiring abroad when the time comes to slow down a bit. The poll, conducted by YouGov, asked people if they plan on moving abroad, and if so, where to.

European destinations Outside Europe

1st: Spain (24%) 1st: North America (22%)
2nd: Outside Europe but region not disclosed (17%)

2nd: France (20%)
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%)

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, thinking that a holiday spot can also be your ideal retirement destination 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 41% less than if you had retired across the border in the USA. Or put another way, your pension would be worth ยฃ1762 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.’

Top tips for retiring abroad:

1. Get an estimate of your state pension

2. Seek independent financial advice before you move

3. Tell HM Revenue and Customs that you are moving overseas. This allows them to let you know of any UK tax liability you may have even though you are living overseas. And more importantly can allow any UK pension you have to be paid gross (no tax deducted) and taxed in your country of residence (only applies if the country you live in has a double taxation agreement with the UK).

4. Check what reciprocal agreements are in place with the destination country regarding your UK state pension and other social security benefits

5. Find out about your welfare rights while abroad

6. Keep an eye on exchange rates

7. Check the cost of healthcare in the country you are thinking of moving to, and consider some form of medical insurance

8. If you decide to keep your property in the UK you will need to let your mortgage provider and insurance company know if it will be rented or remain empty

9. Do your homework on the cost of living in the country you want to move to

10. Notify utility companies, financial institutions and your local council when you are leaving

11. Contact the electoral register, and arrange for mail forwarding via the Post Office

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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