Have you always lived in the UK? Perhaps you’ve always lived in the same town in the UK? Maybe you regularly travel abroad on holiday – but how on earth can you use the experience you have of a holiday resort as any type of marker to gauge whether you should retire overseas, when all you really know is home? The reality for many baby boomers thinking about now leaving the UK for sunnier climes as they reach retirement is that they have no real idea of where would be a good place for them to live overseas.
For those still working and thinking about relocating, the number one driving factor could be the employment market abroad – which is at least some pointer to help you move in the right direction. But for would-be retirees, what constitutes a good place to retire away from the UK, and what should you be thinking about as you research your potential destinations?
In this report we’re going to lay out what we feel are perhaps the 10 most important factors to consider when seeking a place to move to – in other words, we’re going to show you 10 ways to find the right place to retire abroad…the right place for YOU.
1) Affordability - When you retire you may well have a fixed income to live on – and where once the pound was riding high and had strong buying power abroad, it is now languishing last in the FX race well behind the likes of the euro and the dollar. This can make it more expensive that ever to move to live abroad in retirement. You need to look carefully and closely at the cost of everything from utilities to groceries when you’re planning your move abroad. Make sure you can actually afford to go and live in a given nation. And not just live hand to mouth, but maintain a decent standard of living.
2) Taxation - Whilst the UK taxes us all very highly indeed – particularly when it comes to pension income, not only do certain countries such as Cyprus tax retirees at a very low rate, there are opportunities for some would-be retirees to move their pension pot from the UK into a qualifying recognised overseas pension scheme (QROPS) and benefit from lower taxation being taken from the pot when you come to retire. Look into whether you could benefit with the help of a financial adviser. Contact us to find out more.
3) Medical Services - It’s certainly not a truth any of us like to think about, but as we age our requirement for medical support increases – therefore, as you’re planning a retirement abroad, you need to look into the standard of care available abroad. What’s more, you need to think very carefully about the affordability or otherwise of healthcare. Will you be able to benefit from a reciprocal agreement and get free healthcare overseas, or will you need health insurance – or would you be better off paying as you go. Once you leave the UK and become resident elsewhere, you cannot fall back on the NHS.
4) Employment Opportunities - If you’ve not managed to quite squirrel away enough for the best, most comfortable retirement, perhaps you will be looking for work to supplement any investment income. In which case it will be important to discover whether you can work abroad, and if so, whether there are any jobs you can potentially apply for.
5) Way of Life - Culturally, ethnically and even religiously the nation you’re moving too may differ greatly from what you’re used to – can you cope with that, can you integrate, will you fit in and settle in. Making new friends and establishing a new ‘network’ of friendly and helpful faces abroad is 100% critical and essential if you are to settle in and make a new life.
6) Accessibility - You may dream of living in a rural retreat, away from the maddening crowd and hustle and bustle you’ve been subjected to all your working life…however, when you move abroad and retire, you may find that actually, you sometimes crave company and you often require access to shops and services. In later life you may find you don’t want to drive or you can’t get out and about so easily – so think about accessibility of essential amenities and services. Look into public transportation as well.
7) Family and Friends - Whilst one of your reasons for moving abroad might be to escape your family, (!), you may well find that you actually miss all that is familiar about your old life. So, how easy will it be for you and your family and friends to get back and forth and visit. Think not only about accessibility but about affordability of travel too – and remember, you will need a spare bed in your new home abroad!
8) Property Prospects - Talking about your new home abroad, what are properties like in the new country? You may be used to bricks and mortar in the UK, but even in the likes of New Zealand and Australia you could be shocked to find that building practices and standards differ greatly (and not always for the better either!) Can you afford you dream home abroad – or any home for that matter! And would you be better off renting for a while to get the lay of the land and determine where you want to own a home. After all, a property is quite quick to purchase but can take a lengthy time to sell – and in certain nations, if you decide you don’t like your new house and sell it quickly, the fact that you flip it back on to the market within 10 years can mean you’re treated as an investor/speculator and taxed heavily on the sale price you achieve. Look carefully and closely at the rules and the standards and what’s available before you buy in and commit.
9) Climate - Perhaps the one driving factor pushing you on and on to realise your dream of a new life abroad is the thought of better weather – after all, other than in Ireland and Canada, how can you find worse weather!! But even in Mediterranean countries there is a winter, and you can have snow in Australia too you know. Look at weather patterns annually and throughout the year for your chosen destination, and familiarise yourself with the reality of what it will really be like. Remember too that excessive heat and glorious sunshine can take its toll on your health, and you will have to learn to pace yourself if you’re used to running around doing things all day if you’re moving to live in the sun.
10) Things to Do! - Finally, retirement no longer means putting your feet up and waiting to die! People live for decades in great health throughout their retirement and find that they have more time and more energy to do things than at any other point in their lives. So, if you’re moving abroad you need to make sure there is plenty to do and see to keep you occupied. You also need diversity because you will soon find that playing bridge all day and drinking gin and tonic on your sun lounger by the pool will not fill your life sufficiently…honestly!
With all of these pointers in mind, you can research your likely shortlist of destinations abroad and hopefully come up with the top choice for you – and soon enough you’ll be living in a home from home abroad!
