Pros and Cons of Retiring Abroad to 6 Top Countries

Summary: Looking at Australia, Canada, Spain, Italy, France and Cyprus as overseas retirement hotspots for would-be British expatriates approaching retirement

Never has there been a more popular time to consider retiring abroad – the state of the British economy is faltering, the state of the British climate is as bad as it ever was, increasing numbers of retirees and pre-retirees are facing retirement earnings deficits, and therefore the grass has never seemed greener than right now.

But where is the ideal nation in the world to retire to?  There’s such a wealth of choice when it comes to countries with great weather, good standards of living and relatively affordable costs of living where Britons are welcome, so how does one choose?  In this article we’ll be looking at the pros and cons of retiring abroad to 6 top countries that we also showcase in our Living In and Property In sections…

Australia - Despite the fact that one needs a visa to go and live down under, Australia remains a top choice for British retirees because the pace of life is laid back, the people are down to earth, the quality of life is relatively good and the weather can be nigh on perfect depending on which part of Australia you move to.  The downside is that as a retiree – or someone over the age of 55 - you need to be able to prove to the Australian government that you can support yourself in retirement before they will allow you to become a permanent resident.  And to add insult to injury, when you do become a permanent resident the British government will stop your state pension being index linked.

France - retiring to France couldn’t really be easier, it is right on our doorstep after all, and as it is in Europe, British passport holders can move to live in France in retirement with minimal fuss.  Having said that, there is still an abundance of paperwork to handle when it comes to registering your permanent presence in the nation and French taxation is far from favourable.  The country has just revised its inheritance laws however, so now it is easier for spouses to inherit from each other – but do seek legal advice when you make your will just in case.  Downsides include the fact that there is a wealth tax in France for those with assets over a certain value and the public health care system is over subscribed and therefore it can be important for retirees to take out private medical insurance which can be very expensive.

Cyprus - what’s not to love about retirement in Cyprus!  The sun-kissed Mediterranean paradise is also a tax haven for retirees with many legally paying no income tax and others paying just 5% income tax on their pension pot.  The cost of living in Cyprus is relatively affordable – away from the tourism resorts that is - the standard of living is exceptional and the way of life is just perfect!  The island nation has scrapped IHT (although this may not apply to retiring Britons who should always seek legal and financial advice about their inheritance tax situation), and on the downside the cost of real estate is quite high and the flight time to Cyprus makes it a medium haul destination rather than a short haul.  (Although 4.5 hours to Cyprus is more palatable than about 24 hours to Australia if you’re simply comparing the accessibility aspects of your retirement location!)

Spain - the evergreen choice for retiring Britons and would-be expats alike, Spain never seems to fade in terms of its alluring fortunes.  Moving to Spain in retirement is easy – it is only a little further on than France, and Britons benefit from the fact that it is in Europe and therefore they can move there unrestricted by visas for example, and they can have their state pensions index linked.  The cost of property is falling fast, and away from the main areas of urbanisation you can actually find affordable property for sale in Spain nowadays.  On the plus side of things you also have the weather, but on the downside of things – look at the laws of succession and inheritance taxes, take advice and take action otherwise you or your spouse could end up in all sorts of trouble upon the death of the other.

Canada - an increasingly popular choice among would-be British retirees seeking a high standard of relatively affordable living overseas, Canada is appealing to those who love the great outdoors, who want access to world-class health care facilities, who like space with their real estate but who are eligible for a visa to move to live in Canada.  Yes, a downside is the fact that you have to prove your eligibility for permanent residence status, added to which the weather can be harshly cold during the long winters, British state pensions are not index linked and the cost of real estate in most urban areas is quite high.

Italy - la dolce vita (the sweet life) is exactly what one can have when one retires to Italy – a lifestyle of culture and sophistication in an enviably beautiful country with a fabulous climate, sumptuous cuisine, affordable living costs and no visas to worry about.  A country that is affordably within reach of the UK, where property for sale can match any budget and where the pace of life is as laid back or as fast paced as you choose.  However, there is still more bureaucracy in Italy than in any other country in the world (probably) and taxation is quite high – both of these factors may put you off.

The choice of nation in which you retire is going to be driven by personal choices about lifestyle, affordability and even accessibility.  Make sure you spend a lot of time looking not only at the pros of a given country as a retirement destination of choice for you and your spouse, but also the potential cons as well…after all, forewarned is forearmed and if you know about a country, warts and all, then you can make an informed choice about whether it suits you or not.

SHARE: del.icio.us   Digg   Facebook   Google   Mixx   NewsVine   StumbleUpon   Technorati   YahooMyWeb