The reality of the budgetary cuts, tax hikes, inflation and austerity measures in the UK are that we are all getting poorer by the day. It can be dressed up in any way the government wants to make it seem more palatable, but the truth of the matter is that our bank accounts are being negatively impacted and we’re all finding it harder to afford the quality of life we’ve been used to.
For retirees this situation is very limiting, particularly if they’re existing on a fixed income in retirement.
If you’re facing this situation already, or you’re soon going to retire and you realise that now you can no longer afford to retire abroad as you had perhaps planned, what can you do? Do you really have to give up on your long held dream because we’re all being penalised for the big bank bailout? In this report we’re going to show you an alternative to permanent relocation overseas in retirement that could suit you if your pension income has been hard hit.
Statistics agencies and government institutions alike agree that the numbers of Britons planning and embarking upon a retirement abroad has increased substantially in the last decade. In part this had to do with increased affordability at the time – but now this affordability has been slashed, it’s highly likely to have a dramatic impact on the numbers of those who can afford to realise their dream going forward.
If you feel that the fall in house prices, the slowing of the real estate market, the drop in the pound’s value and the inflation and tax erosion effects on your salary, income, savings and assets mean that you can no longer move abroad as you had planned in retirement, fear not – because there is another way to making a permanent move overseas.
In North America the concept of taking a part-time approach to relocation in retirement has been around for a long time – people who move south just for the winter are called ‘snow birds’ – and the way they lead their life is the concept we’re going to be discussing and exploring today.
Snow birds generally live in the colder parts of America and Canada and fly down to places like Florida, California and even Mexico to get up to 6 months of sunny weather before returning ‘home’ and catching back up with friends and family. The benefits these people enjoy are manifold – and for example the following 5 main benefits can also apply to you if you instead think about taking a part time approach to retirement abroad: -
1) Snow birds don’t need to sell their primary residence (particularly of interest to Britons at the moment who would certainly realise a depressed value if they did sell now as the property market in the UK has fallen.)
2) They don’t need to say goodbye to family and friends or kiss goodbye to the grandchildren, the longest they will be apart is 6 months – but it’s highly likely that in the time they are away in the sun they will be visited anyway. (Again, this is of strong interest to anyone thinking about moving abroad in retirement as missing ‘home’ and family can be a deal breaker that prevents many couples from actually committing to relocation.)
3) They can rent out their house for the 6 months they are away - that will provide them with an extra income in retirement. (Brits who own their own home in the UK can do the same thing, and this will supplement the amount they have to live on in retirement!)
4) They can enjoy a reduced cost of living abroad – reduced because they relocate to a nation where their currency buys more, where the cost of living is naturally lower and where they don’t have to pay for heating. What’s more, they don’t have to pay for heating back home either if they are renting their property out. (This is a reality of taking a part time approach to retirement abroad if you relocate to a sunnier climate and a cheaper nation. The added bonus of never having to pay to heat a property means your money really will go so much further.)
5) They don’t have to worry about changing residency status, changing tax status, getting visas for relocation or all that hassle! The majority of snow birds either relocate within America or go to a country where they can stay on a tourist visa for up to 6 months. (For Britons all of these points apply – you can move anywhere in the world you want to live as long as you can get a tourist visa to visit there, and you don’t have to worry about registering, changing your tax status, getting a new will drawn up or changing your driving licence for example.)
So, if you were depressed at the thought of no longer being able to afford to live abroad in retirement, as you can perhaps see taking a part time approach to living abroad can be an even better way of living the dream! You can have the best of all worlds, your money can go far further, you can even supplement your income in retirement by renting out your property, (or you could use the income you earn to pay for your place abroad perhaps), and you don’t need to be apart from family and friends for long. You can have perpetual summer, you will never be bored, and just as you’re starting to long for home or you’re starting to long to get away, your 6 months will be up and it will be time to move again!
