WORTHING, England, August 24, 2015 /PRNewswire/ --
- Spain tops the poll for most popular overseas retirement destination
- France second in the rankings, with North America the top for locations outside Europe
Retirement Advantage, the financial services company, has asked the over 50s who have yet to retire if 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 £1762 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 (only applies 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
Notes to editors
- Research was conducted by YouGov Plc. The survey was carried out online between 6 August and 11 August 2015. The total sample size was 1001 adults. The figures have been weighted and are representative of all those aged 50+ with some form of DC pension and not in retirement (aged 50+).
- The UK full basic state pension for a single person was worth £82.05 in 2005. From April 2015, it is now worth £115.95 a week, an increase of 41%. 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 Retirement Advantage
Previously known as MGM Advantage and Stonehaven, Retirement Advantage can trace its roots back to 1852. In 2015, the company changed its name to Retirement Advantage, merging the equity release and retirement income divisions.
The company specialises in retirement, with award-winning expertise developing products which can help people make the most of their retirement savings and/or the value in their property.
Products include the Guaranteed Annuity, providing the best possible guaranteed lifetime income for individual circumstances; the Flexible Income Annuity, which offers the opportunity for retirement income to grow; and equity release products, which allow homeowners the opportunity to release cash from their home without having to move or give up ownership.
Our Equity release products are lifetime mortgages. To understand the features and risks ask for a personalised illustration.
Inflation will reduce how much your income is worth over the years. The value of Investment linked Annuities can fluctuate. Income could go down as well as up. Withdrawals in excess of growth in the fund may result in the fund running out quicker than expected. Taxation rules and regulations may change in the future.
Retirement Advantage is financially strong, as rated by AKG (an independent company that specialises in providing ratings for the financial services industry).
Retirement Advantage is the retail brand for a group of companies which manages assets in excess of £1.8bn (as at December 2014).
For further information
SOURCE Retirement Advantage