WORTHING, England, August 4, 2014 /PRNewswire/ --
- Over six million UK adults are planning to retire abroad
- Spain tops the poll for most popular overseas retirement destination
- France second in the rankings, followed by USA
MGM Advantage, the retirement income specialist, has revealed the nation's favourite overseas retirement destinations, which are:
1st: Spain 6th: Canada 2nd: France 7th: Italy 3rd: USA 8th: South East Europe 4th: Australia 9th: India 5th: Far East 10th: Portugal
In total, over 6 million UK adults are planning to retire abroad, with an even split between Europe and the rest of the world. Of the estimated 3.2 million UK adults planning to retire in Europe, Spain is the most popular destination with 26% of the vote. France follows in second place with 17% of votes. Italy comes in third place with a 10% popularity rating.
Looking further afield, an estimated 3.2 million UK adults are planning to retire outside Europe. The most popular destination is America, with 16% of votes. Australia follows in second place with 14% of votes. Coming in third place is the Far East, which pulled in 13% of votes.
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.
'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
- Get an estimate of your state pension here https://www.gov.uk/state-pension-if-you-retire-abroad
- Seek independent financial advice before you move
- 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 - if the country you live in has a double taxation agreement with the UK.
- Check what reciprocal agreements are in place with the destination country regarding your UK state pension and other social security benefits
- Find out about your welfare rights while abroad
- Keep an eye on exchange rates
- Check the cost of healthcare in the country you are thinking of moving to, and consider some form of medical insurance
- 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
- Do your homework on the cost of living in the country you want to move to
- Notify utility companies, financial institutions and your local council when you are leaving
- Contact the electoral register, and arrange for mail forwarding via the Post Office
To help people considering retiring abroad MGM Advantage has published tips here: http://www.mgmadvantage.co.uk/blog/retiring-abroad-thinking-of-retiring-abroad/
Notes to editors
- Source: MGM Advantage research among 2,028 UK adults aged 18+, conducted online by Research Plus Ltd, fieldwork 17-22 October 2013.
- The UK full basic state pension for a single person was worth £79.60 in 2004. From April 2014, it is now worth £113.10 a week, an increase of 42%. If the country you're retiring to has a reciprocal agreement in place with the UK then the UK state pension will be paid and increase as normal. However where there is no agreement, and that includes Australia and Canada, your state pension will be frozen and won't increase.
- Cost of living abroad: you can check the relative cost of living here: http://www.numbeo.com/cost-of-living/
- Information on reciprocal agreements and a list of participating countries is available here: http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_10026714
- For further information on living abroad, please refer here: http://www.direct.gov.uk/en/BritonsLivingAbroad/index.htm
About MGM Advantage
MGM Advantage is a retirement income specialist, innovating, growing rapidly and working hard to make the most of people's money in retirement. From offices in London and Sussex, the provider sells its products through financial advisers.
The company attracted the backing of private equity investors TDR Capital, with the deal concluding in late 2013. This resulted in the creation of a new life company using the MGM Advantage brand, and resulted in a split from the mutual society (Marine and General Mutual). The strategy set out in 2008, to focus on the retirement income market, is retained.
MGM Advantage's market leading products include an investment-linked annuity, the Flexible Income Annuity, the first retirement income product to be rated five stars by Moneyfacts. This gives customers the flexibility to change income levels at different stages of retirement and the potential for growth and therefore, the potential to negate the impact of inflation. It also provides a minimum income guarantee and death benefits. Enhanced rates are also available for the Flexible Income Annuity.
MGM Advantage also specialises in providing enhanced annuities designed to provide additional income in retirement for people with health conditions, a poor medical history, or lifestyle conditions, for example smoking.
Through new product innovation and development MGM Advantage is always looking to find ways in which its customers can improve their retirement income, and encourages people approaching retirement to shop around for the best annuity.
MGM Advantage is part of a group of companies owned by ICE Acquisitions SARL (ICE Group). This group of companies includes the new life company (MGM Advantage) and a service company (MGM Advantage Services Limited). MGM Advantage manages assets in excess of £1.4bn (as at December 2013).
For further information: MGM Advantage, Paul Keeble, +44(0)7833-085387, email@example.com
SOURCE MGM Advantage