Is the Grass Currently Greener for Expatriates Living Abroad?

According to a recent survey from Halifax International, we Britons escape the UK to find a better quality of life, to seek employment, for better weather and to escape the deteriorating nature of society in Britain.  However, is the grass currently greener for expatriates living abroad, or is the global financial crisis having an impact on their lives too?

Unfortunately it seems that even if you can escape the UK and find better weather, your quality of life improvements may well not manifest themselves at the moment because yes, expatriates are also feeling the financial pinch overseas.

New research highlights the fact that even expatriates who are working abroad are finding that the cost of living is rising, whilst those on a fixed income such as retirees overseas are discovering that a weak pound and strong inflation in their new nation are biting hard fiscally speaking.  So is it still possible to have a better life overseas?  In this report we look at the reality of moving to live and work abroad in the current economic climate.

Expat Disposable Income is Diminishing

In the last eighteen months well over half of all expatriates questioned in a survey by Halifax International have reported that the amount of disposable income they have at the end of each month has diminished significantly, with 44% reporting that they have seen at least a 10% decline in the amount of money they have left after bills and taxes.

Just as UK residents are realising that the government is sneakily increasing taxes through the likes of fuel duty rises, and inflation is at the same time pushing up food prices, so those living abroad in many nations are feeling the pinch too.  The global financial fallout is forcing governments to increase taxation, it is causing currency fluctuations which can negatively impact hard on expats, and what’s more, anyone and everyone seems to be pushing prices up, so the cost of living day to day is increasing.  This is having as dramatic an impact abroad as it is at home.

Expats Investments are Not Performing

Almost two thirds of those who responded to the survey also highlighted the fact that they were suffering from diminishing investment portfolios thanks in part to currency fluctuations again, but more significantly due to fluctuating fortunes on international stock markets.  Those who had invested in property at home or abroad were also feeling the effects of a global property crash.

So what does all this tell us?  Well, it highlights that yes, the financial situation impacting the lives of onshore Britons has gone global and is affecting people pretty much everywhere in the world!  And when you have less coming in and yet more going out, (88% of those surveyed said that the price they have been paying for food has gone up in the last eighteen months), the grass cannot be greener in a purely financial sense, no matter where you move to in the world.

However, money isn’t everything.

Expats Still Happy to Be Living Abroad!

Despite the fact that expatriates are indeed being as negatively impacted as their onshore peers in purely financial terms according to Halifax International’s survey findings, you still won’t get them complaining about their new life or advising that they’ve had enough and want to return home!  Quite the contrary in fact, of those questioned 41% stated quite emphatically that not only were they very happy with their new life abroad, but that they never, ever wanted to return to the UK!  The majority of the remaining 59% were also happy with their better lifestyle, better weather and better work life balance now that they had expatriated.

Therefore, in answer to the question posed at the start of this article – i.e., is the grass currently greener for expatriates living abroad?  The answer clearly depends on whether all you care about is money, or whether you’re actually more interested in quality of life.  If the former is true then nope, because expats are not immune to the financial fallout we’re all feeling.  But if you’re from the latter camp then I think you will find that yes, expats have never been happier being out of the UK and enjoying a sunnier more carefree existence abroad!