A recent survey by insurance giant Aviva has revealed that over half of the 1,000 British people they questioned in an 18 – 45 year old age range are contemplating a move overseas, and that they are largely encouraged to do so by the current state of the economy in the UK. However, ironically the issues holding people back from making the final critical decision to move overseas are also financial ones.
Whilst a decline in the jobs market and a decrease in living standards directly caused by governmental cuts are apparently reasons to move abroad, the NHS and state benefits are reasons to remain in Britain according to those surveyed. However, as Annabel Kantaria hints in her Telegraph column when discussing the Aviva survey findings, the aspects of life in the UK that Britons would seemingly miss too much to leave are actually mythical in status.
Today we want to help Britons overcome the financial issues that are perhaps preventing them from moving abroad by lifting the lid on the concerns that are seemingly uppermost in many would-be expats’ minds. From believing that Britain has the best healthcare system in the world to assuming that you can’t get financial support if you move abroad, some Britons’ thinking is certainly skewed!
Why do Britons Want to Move Abroad?
According to the survey by Aviva, 54% of those surveyed are contemplating a move abroad with 89% citing a decline in the British jobs market as a reason to consider moving, and 54% stating that governmental cuts and a subsequently negatively impacted lifestyle have made them seriously think about relocating.
Additional factors encouraging Britons to look at their options are the weather in the UK, a poor quality lifestyle, excessive stress and the poor work/life balance that many achieve in Great Britain.
Positive Prospects of an Expatriate Life
Quite rightly the surveyed respondents believe that they can find a healthier, more varied lifestyle abroad where less stress and better weather will ultimately result in a higher quality of life. However, what many would-be expatriates fail to appreciate is the very real fact that they may well be better off financially if they relocate.
As Annabel Kantaria puts it: “for many expats, a move overseas equates with both an increased quality of life and more disposable income…” We can add to this the fact that there are sometimes taxation advantages achieved through relocation (e.g., if the expat moves to a nation with lower income tax rates than the UK), and that there are diverse and tax advantaged offshore financial solutions that expats can potentially benefit from when it comes to saving and investing their earned income and wealth.
In other words, as an expat you may find yourself positively advantaged on many levels by moving abroad – but apparently Britons still resident in the UK fail to see this. Whilst the state of the British economy is reason to relocate, according to Aviva Brits are scared that their fiscal prospects could be worse if they move abroad – and it’s this dilemma that’s holding some back from making the move.
What’s Stopping Britons from Emigrating?
According to the official Aviva press release: “When asked about their concerns, a quarter (25%) were worried they might have worse benefits abroad. And, 37% think they would have less state funded privileges…Almost a half (46%) of respondents think the UK has better health benefits than other countries worldwide.”
State Benefits and the NHS – Truths and Perspective
As an expat reading the above it’s hard not to laugh – because with experience of life abroad comes the perspective and knowledge one needs to realise how disillusioned some Britons are.
Firstly the state (benefits) system in the UK is under fire from the current coalition government because it is wholly unsustainable fiscally speaking, and because it is often abused and open to massive fraud. Those who genuinely need help often don’t qualify – (for example think of the middle-income family which loses its income if the main breadwinner is made redundant or falls ill. Chances are they will have a home on a mortgage and a tiny bit in saved wealth which will mean they will have to lose the lot before they will even be considered eligible for the most basic help.)
Those who do live day-to-day and hand-to-mouth on the benefits system are right to think that they may struggle abroad, and those who are genuinely vulnerable and who fall into this category would be right to think twice about relocation.
Others who choose a life on benefits probably don’t have what it takes to make a new life abroad – such as ambition - but hey, anyone else can apply for expat status if they want to and have a really good chance of improving the quality of their life on many levels.
As for anyone who thinks that Britain has the best health care system in the world and that it’s wonderful because its free, well they just need to spend some time in almost any other first world nation from Germany to Dubai and from South Africa to America to realise that not only is the NHS deeply flawed, but that the healthcare standards in the UK are appalling.
Medical insurance is the one way to afford decent healthcare abroad – but even the thought of having to buy medical insurance sends the fear of God into Brits.
But why?
Because we Brits think we don’t have to pay for the NHS!
However, as soon as Brits relocate and realise that they’re not having to subsidise a million managers overseeing a few disillusioned healthcare professionals through their very high taxation and that they have so much more disposable income as a result, and then they discover they can afford platinum plated medical insurance and buy themselves the best possible care for an affordable price (relatively speaking), the above concerns go out the window.
A Little Bit of Research Goes a Long Way…
Anyone who is unhappy with core fundamental aspects of life in the UK and who is therefore encouraged to consider a new life abroad should take their desire a stage further and research their options carefully.
A little knowledge may be a dangerous thing, but sufficient knowledge of what your new lifestyle could be like will arm you with the tools you need to have the very best chance of success abroad.
Look at the job prospects for someone with your skills in a new nation; look at tax rates and the cost of living and real estate. Examine the weather, lifestyle factors, healthcare offerings, education standards and where you will need to self-fund aspects of your life - such as through international medical insurance or private schooling for children for example.
Communicate with other expats and locals in the region via forums and social networking sites, and travel to your country of choice to see it up close and personal before committing to the relocation.
Determine the pros and cons, costs and savings, weigh up what you will genuinely miss such as friends and family, against what you will gain such as a better and healthier lifestyle, an improved work/life balance and better prospects for your children’s future - and then make an informed choice accordingly.
Don’t be ignorant of the opportunities or the risks – and know that often the fears holding people back are allayed with knowledge and finally put to bed with the benefit of perspective and hindsight that comes when you’ve taken the bold step and relocated overseas.