Around one in 10 Brits are dreaming of spending their retirement overseas, according to new research.
Table of contents
More than 6 million people are planning to become expats – with more than a quarter looking to Spain as their top destination.
France (17%) and the United States (16%) are the next favourite places to spend their later years, according to a study by retirement financial firm MGM Advantage.
The top 10 retirement destinations for Brits, says the survey, are:
- Spain
- France
- USA
- Australia
- The Asia Pacific
- Canada
- Italy
- South East Europe – especially Greece
- India
- Portugal
The numbers who want to become expats are split slightly in favour of Europe – with 3.2 million planning to settle in another European Union country.
Retirement destinations driven by lifestyle choices
Behind Spain and France, Italy is the next most popular retirement getaway with 10% of the vote.
Australia pulled in 14% of the votes, while the Asia pacific was just behind with 13%.
The big draws for living overseas are warmer weather, a cheaper cost of living and a more relaxed lifestyle.
Improved finances are also attractive, with many people expecting their retirement savings to go further overseas.
But the financial firm running the research warns this might not necessarily be the case and people should do their homework before committing to a move abroad.
MGM Advantage’s Andrew Tully said: “Just because you enjoy a holiday overseas does not make the place a dream destination for retirement.
Check your finances before you go
“Few people understand the hidden costs of living as an expat, which can include tax issues and unfavourable exchange rates with the pound affecting their spending power.”
The firm also points out that another unforeseen issue is receiving the state pension while living overseas.
“Many rely on the state pension to help their finances, but everyone should do their homework before they go. They will find that many countries peg the state pension at the rate of the first payment and pensioners do not receive the cost of living increases that are automatic in the UK,” said Tully.
As an example, the firm explained that the state pension paid to someone living on the Canadian side of the US border 10 years ago is worth more than £1,700 a year less now than the payment to someone living on the US side.
“Researching your finances before you go is very important,” said the spokesman. “Finding out before you go can be worth a lot of money to anyone living on a fixed income in retirement.”
Related Articles, Guides and Insights
Below is a list of some related articles, guides and insights that you may find of interest.
Questions or Comments?
We love to get feedback from our readers. So, after reading this article, if you have any questions or want to make comments, send us a message on this site or our social media?
Don’t forget that you can also request the guides sent directly to your email inbox.